One of the first rules of negotiating is that both sides of a negotiation are looking to gain something. This is basically true of any negotiation. In order for the process to work, both parties must be dissatisfied with the status quo and, therefore, willing to compromise, give up something to gain something else.
This is why negotiations between Israel and the Palestinian Authority (whether we're talking Hammas or Fata is irrelevant) will never succeed. While Israel has a lot to gain by negotiation (and, therefore, is willing to throw in everything including the kitchen sink), the PA has nothing to gain and is therefore unwilling to toss anything into the "pot".
You see, while Israel is being pressured, attacked in the media, attacked physically and losing people every day, the PA is being supported financially, politically, and in the media and is getting unilateral concessions from Israel (e.g. the Gaza Strip -- please tell me what Israel got for giving up that area of land besides more missiles fired at population centers). Why would they want to change the status quo?
In order to get the PA to the bargaining table, we have to make it worth their while. We have to make them want to denounce violence and terrorism. The only way we can do that is to make violence and terrorism not work for them by attacking them, and attacking them hard whenever they bomb Sderot or murder teenagers in a Yeshiva or blow up a bomb on a bus or any of the other terrorist activities they perform day in and day out.
Leaders of Israel (and the rest of the free world, by the way) -- listen carefully: We are at war whether we like it or not. The enemy is attacking US. We need to fight back until they come to us wanting peace. That's the only way we will ever be able to stop the killing.
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