This morning’s key headlines from GenerationalDynamics.com.

U.S. borrowing exceeds the debt limit

The U.S. Treasury Dept. reported that new debt auctions of $72 billion will push the debt past the debt limit by Tuesday morning, meaning that the Treasury can’t borrow any more money. Starting Monday, the agency will suspend investments in federal retirement and disability funds. These and other actions will free up $147 billion that can be used to pay off other debts, to keep the U.S. out of default. Wall Street Journal (Access).

Israel agrees to release Palestinian tax funds

Since the Fatah-Hamas reconciliation agreement, Israel has been withholding $85 million in tax revenues from customs duties and other levies it had collected on behalf of the Palestinians. Apparently responding to international criticism, Israel has reversed this decision, and will transfer the funds, “after Israel received several assurances and clarifications that the money would not find its way to terrorists’ hands and that none of the procedures applied so far would change.” Ynet

Jordan police used violence against anti-Israeli protesters

At least 19 people were injured on Sunday as Jordan’s police used teargas and beat participants to disperse hundreds of anti-Israeli activists. Haaretz

New reports question Israel’s competence in Sunday’s confrontation

Some web site readers have complained to me about my analysis of Israel’s actions on Sunday. ( “16-May-11 News — Israeli army fires on unarmed protesters crossing three borders”) Thanks for all the feedback guys, but you’re missing the point.

This isn’t my opinion. I’m just reporting the news. It’s the opinion of Israel’s own internal inquiry, the Winograd Commision, that Israel’s 2006 invasion of Lebanon was a total screwup. ( “Israeli government in crisis after report on war with Hizbollah”)

Once again, it’s not my opinion, but the opinion of the Jewish/Israeli sources quoted, as well as many others that appeared on Monday, that Sunday’s actions against protesters were apparently also a total screwup. Already, the Palestinians are celebrating this as a big PR victory. There will be investigations, internal and external, that will explore this further. And yes, the incompetence shown was almost surely the fault of Boomers and Gen-Xers because they have no memory of the 1948 war.

Those of you who love Israel should start showing some common sense, before Israel’s panic and overreaction cause a real disaster. Haaretz and Independent

Taliban gunmen kill Saudi diplomat in Karachi, Pakistan

The Pakistan Taliban militant group, Lashkar-e-Toiba, is taking credit for the murder, by gunmen on motorcycles, of a Saudi Arabian diplomat. The militant group described Pakistan and Saudi Arabia as American “slaves” and hailed the attack as a “very good job.” Saudi Arabia will provide increased security for its diplomats in Pakistan and other countries. Reuters

Abbas renews his plans to resign as PA president

Several times in the past, Mahmoud Abbas has threatened to resign as Palestinian Authority president (PA) because of the collapse of the peace process. In March, he threatened to resign if a Palestinian state is not established by September. Now he’s saying that he will step down is a Palestinian state IS established by September. Haaretz

Abbas says he was duped by President Obama

PA president Mahmoud Abbas says that in his opinion, Barack Obama was more receptive and sympathetic to the Palestinian cause prior to his becoming president. With regard to lame duck Mideast envoy George Mitchell, Abbas said, “Every visit by Mitchell, we talked to him and gave him some ideas. At the end we discovered that he didn’t convey any of these ideas to the Israelis. What does it mean?” Abbas said that Obama essentially double-crossed him by not pressuring Israel to continue its settlement moratorium: “It was Obama who suggested a full settlement freeze. I said OK, I accept. We both went up the tree. After that, he came down with a ladder and he removed the ladder and said to me, jump. Three times he did it.” Jerusalem Post

International Criminal Court indicts Muammar Gaddafi

The International Criminal Court (ICC) issued arrest warrants on Monday for Libya’s Muammar Gaddafi, his son Saif al-Islam, and his brother-in-law and intelligence chief, Abdullah al-Sanoussi. It seems unlikely that Gaddafi will honor the warrants and turn himself in. The ICC warrants make a negotiated settlement to the war less likely, because Gaddafi would be subject to arrest at any time. Globe & Mail