What the hell is wrong with our government? This is obsessive-compulsive, reality-denying policy on a massively dysfunctional scale: U.S. to End Embargo Against Palestinians With New Government.

RAMALLAH, West Bank�—� The U.S. strengthened its offer of support for President Mahmoud Abbas on Saturday, telling him an international aid embargo against the Palestinians would end as soon as he forms a new government without Hamas, aides to Abbas and a Western diplomat said.

The United States and European Union issued statements expressing backing for Abbas in light of the upheaval that has remade the Palestinian territories, but they said no decision had been reached on lifting the embargo.

UPDATE at 6/16/07 9:03:45 am:

This is who the Bush administration is throwing their support behind: ‘Moderate’ Abbas Executes Man Without Trial and Attacks Others.

(IsraelNN.com) Palestinian Authority (PA) Chairman Mahmoud Abbas unleashed his party’s Al Aksa Martyrs Brigades terrorist militia Friday, executing one person without trial and wounding and arresting dozens of others. Al Aksa said it murdered a 32-year-old Hamas loyalist from Shechem in retaliation to Hamas assassinations of Fatah terrorists in Gaza.

The bloodshed spread to Tulkarm, east of Netanya, where masked Fatah terrorists sprayed fire indiscriminately and torched a Hamas office, according to the Bethlehem-based Ma’an news agency.

Abbas’ terrorists also kidnapped a grocery store owner in Tulkarm, shot at two buses, set fire to a Hamas charity office and to stores and raided homes.

(Hat tip: Bubbaman.)