NEWS: A growing economic crisis is coloring all Palestinian policies. Pres. Abbas says he’s not deterred by US threats over a UN statehood bid, and calls for Palestinian rallies in support. Palestinian security forces raid the home of former Fatah leader Muhammad Dahlan. Palestinian electoral officials say municipal voting will only be held in the West Bank in October because Hamas refuses to cooperate in Gaza. Palestinians say Israel is destroying ancient cisterns in the occupied territories. Israeli-Palestinian commerce is continuing but may be threatened. A US government report recommends ending loan guarantees to Israel. Palestinian citizens of Israel debate National Service. The terrorist outrage in Norway focuses attention on outreach to Israel by extreme right-wing elements in the West. An appropriations bill pending in Congress might shut down the PLO mission in Washington. Gaza filmmakers denounce Hamas censorship. COMMENTARY: D. Bloomfield asks if Abbas’ policies are setting up a third intifada. Tariq Alhomayed says Hezbollah leader Nasrallah has effectively recognized Israel. George Hishmeh says Israel is facing international isolation. Daoud Kuttab says the Palestinian march towards the UN may be unstoppable, although what form it will take remains undecided. Michael Jansen looks at the history of the American Colony Hotel in occupied East Jerusalem. MK Ahmad Tibi says the new Israeli boycott law is antidemocratic. Allison Hoffman says the US budget impasse is reminiscent of the Israeli-Palestinian diplomatic deadlock. Natasha Mozgovaya says Israel and the Palestinians are still the focus of great attention in Washington. Olga Gershenson looks at a new film questioning Israel’s legal structures in the occupied territories. Hussein Ibish traces the evolution of Syrian policy towards Palestine and the Palestinians.