The latest news on Israel-Gaza, Richardson Withdrawing from Commerce, Economic Stimulus, Faith-based Initiative, Death Penalty, Job Discrimination, Iraq, Iran, and Select Op-eds.

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Israel-Gaza. Casualties rise in Gaza offensive "Casualties have been pouring into over-stretched hospitals in the Gaza Strip as Israel presses on with its offensive against Palestinian militant groups." Israeli troops and Hamas fighters clash in Gaza City "Israeli soldiers and Hamas militants fought gun battles in the streets of Gaza City for the first time this morning, leaving at least 10 children dead as the offensive against the Palestinian territory continued." Israeli Attack Splits Gaza; Truce Calls Are Rebuffed "Israeli troops and tanks, protected by heavy air, sea and artillery fire, sliced through the center of Gaza on Sunday, taking control of rocket launching areas and surrounding the main city, as their government rebuffed diplomatic efforts to end the nine-day assault." In Southern Israel, Residents Doubt That Rocket Fire Can Be Stopped "Just over the border in Gaza, thousands of Israeli troops battled Hamas fighters Sunday while Israeli warplanes, helicopters and drones bombarded targets from above." Gaza incursion halts aid convoy, commerce at Egypt border crossing "With jets streaking overhead and explosions thundering in the distance, the Greek surgeon stood Sunday beside a stalled convoy carrying blood bags and syringes, hoping to slip through the black gate at the Egyptian border to reach the wounded in the Gaza Strip."

Richardson withdraws from Commerce. Bill Richardson withdraws as Commerce pick "President-elect Barack Obama was dealt a setback to his incoming Cabinet on Sunday when Commerce Secretary-designate and New Mexico Gov. Bill Richardson withdrew from consideration amid a federal investigation into how a political donor from Beverly Hills won a lucrative state contract." Richardson, citing probe, withdraws name for Commerce "New Mexico Gov. Bill Richardson withdrew his name from nomination as commerce secretary Sunday, saying a federal probe that has reached into his office could last months and was certain to bog down his confirmation."

Economic stimulus. Obama Plan Includes $300 Billion in Tax Cuts "President-elect Barack Obama plans to include about $300 billion in tax cuts for workers and businesses in his economic recovery program as he seeks to win over Congressional skeptics worried that he was too focused on government spending." Top Democrats Favor Deliberate Approach to Stimulus Bill "Lowering expectations for quick passage of an economic stimulus bill, Senate Majority Leader Harry M. Reid rejected setting 'some false deadline' for delivering legislation to President-elect Barack Obama in favor of a more deliberate approach that allows Congress to get the package right 'the first time.'"

Faith-based initiative. Obama likely to retool Bush's faith-based initiative "President-elect Obama has promised to build on the faith-based initiative of President Bush and, by adding key reforms, to make it 'the foundation of a new project of American renewal.' But to do that, his administration will need to resolve constitutional and other tangles that have made Mr. Bush's effort so controversial."

Death penalty. States ponder death penalty as executions hit 14-year low "A rush of executions some expected to follow a Supreme Court decision upholding lethal injection didn't happen. Instead, executions slowed to a trickle, to 37, the lowest number since 1994 and continued a decline since executions peaked at 98 in 1999."

Job discrimination. Justices' Ruling in Discrimination Case May Draw Quick Action by Obama "President-elect Barack Obama and Democrats in Congress are planning swift action to overturn a Supreme Court decision that made it much harder for people to challenge discrimination in employment, education, housing and other fields."

Iraq. New U.S. embassy opens in Baghdad "The compound is one of the biggest and most expensive embassies the U.S. has ever built, and was opened amid heavy security in the Iraqi capital." Dozens in Iraq killed by woman wearing a bomb "A woman wearing an explosive belt blew herself up near an important Shiite shrine in northern Baghdad on Sunday, killing as many as 40 people - many of them pilgrims - and wounding about 76, police said."

Iran. Ahead of Election, Iran's Hard-Liners Crack Down "As the race for Iran's presidential election heats up, hard-liners are cracking down on activists who have supported reformist candidates in the past."

Opinion. Enlightenment in Gaza (James Carroll, Boston Globe) "For a brief period, America's new president will bask in universal goodwill. The Arab world, Muslims generally, and Palestinians in particular, have unprecedented reason to believe they will be heard. Israel can count on Obama's friendship. The war in Gaza requires him to act boldly and swiftly. If he has political and moral capital, he must begin by spending it there, making sure that such heartbreaking violence stops, for good." Fighting Off Depression (Paul Krugman, New York Times) "The fact is that recent economic numbers have been terrifying, not just in the United States but around the world. Manufacturing, in particular, is plunging everywhere. Banks aren't lending; businesses and consumers aren't spending. Let's not mince words: This looks an awful lot like the beginning of a second Great Depression."