NEWS: Occupation forces clash with Palestinian protesters after Israeli troops raid a West Bank village. Villagers are still trying to recover from the spasm of violence. Israel says it has "yet to decide" whether to transfer Palestinian tax revenue to the PA this month or not. An Israeli NGO says settlement construction in occupied East Jerusalem reached a new high in 2012. Israel orders dozens of Bedouins to leave their villages in the occupied West Bank so it can conduct military exercises. Israel has finished most of its barrier along the Egyptian border. Pres. Abbas will visit Egypt on Jan. 11. The PA cancels electricity debts for all West Bank residents. Israeli settlers are farming privately-owned Palestinian land while the military keeps the owners away. Likud party members are increasingly calling for annexation of occupied Palestinian territories in the run-up to the election in Israel. The JTA profiles Netanyahu aide Ron Dermer. COMMENTARY: Ari Shavit says the settlers are trying to politically occupy Israel. Amira Hass says Palestinian "threats" to Israel are driven by fears that the status quo could remain permanent, but Abdul Rahman Al-Rashid says Palestinians really should consider dissolving the PA. Shimon Shiffer says the attack by Israeli officials on diplomats who question the timing of the E1 settlement expansion announcement is bewildering. A.B. Yehoshua says Israelis have to demand an end to the settlement project in order to save Israel as a Jewish state, but the Washington Post dismisses the significance of settlements. Ariel Katz says both Israelis and Palestinians are driven by self-preservation. Geoffrey Aronson harshly criticizes PM Fayyad's policies, but Hussein Ibish says his account is fundamentally wrong.

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