"Hamas is negotiating with Israel": this is what Palestinian Authority President Mahmoud Abbas confidently said to a BBC-Arabic reporter in an exclusive interview. How does he know? Abbas asserted that there are "no secrets in Israel."

If things could only be this simple in the Middle East, Mr. Abbas would have known from the get-go that the Oslo Accords were a disaster for the Palestinians, Bush's Road Map for Peace was just another road to nowhere, the Annapolis Peace Conference was dead on arrival, and Obama's promises for "change" do not mean squat when it comes to Israel.

The president of the Palestinian Authority added that the presidential and legislative elections scheduled for January will be postponed and that he would not seek a second term as president. Abbas looked frustrated...he looked like a beaten man.

Meanwhile, the Israeli government in recent days has been scrambling for yet another distraction to offer the beleaguered Palestinian Authority president: an interim accord that would include a Palestinian state with provisional borders. This way he'll have a quasi-state with temporary borders to show for all the endless negotiations. What a brilliant idea!

The reasoning behind this brilliant idea is that it would remove contentious issues that have prevented an agreement in the past, such as the Palestinian refugee issue and Jerusalem, from the negotiating table. No big deal, really!

This is starting to sound like another chapter from One Thousand and One Nights.

In another development, the Israeli government has recently approved the construction of 900 new housing units in Gilo, a Jewish neighborhood built on lands captured by Israel in 1967. The announcement has caused an uproar in the international community and has drawn sharp criticism and "dismay" from the White House.

And yet another brilliant idea: according to the Jerusalem Post, in an attempt to lure the PA back to the negotiating table, in private discussions, the Israeli Prime Minister Benjamin Netanyahu has made clear he was prepared for a moratorium on new settlement construction, as long as it did not include Jerusalem and did not preclude construction of public buildings needed for normal life in the settlements.

Translated, this means construction will continue as usual in E. Jerusalem along with expanding current Israeli settlements.

Meanwhile, with all this happening, media reports have been surfacing that a final deal has been reached for the release of captured Israeli soldier Gilad Shalit. Some Arab media outlets have been reporting that Shalit might be released as early as the Muslim Eid holiday in exchange for 1000 Palestinian prisoners. Should this happen, it will be a major victory for Hamas and another blow to Abbas.

Last month Hamas handed Israel a video of Shalit in exchange for 20 female Palestinian prisoners, something that was widely seen as a major victory for the organization by many Palestinians.

According to a poll published in Haaretz, 57 percent of Israelis support the idea of talking with Hamas. The poll was taken in the wake of a statement by former defense minister Shaul Mofaz, who last week unveiled a plan that includes negotiations with Hamas and an interim Palestinian state on 60 percent of the West Bank in a year.

"If Hamas would be elected and would want to negotiate and accept the Quartet's conditions, from that moment, it is no longer Hamas," said Mr. Mofaz. He also added: "Responsible leadership in Israel would sit with those who changed their agenda."

So if Hamas is no longer Hamas, and the Palestinian Authority is no longer an authority, what options do the Palestinians have?

To be continued on another night...

**This article was published on the Huffington Post

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It is not the first time Palestinians have called for the resignation of Mahmoud Abbas. When Hamas swept to victory in the Palestinian Parliamentary Elections in January 2006, angry mobs from the defeated Fatah party staged rallies in the Gaza Strip, calling for his resignation. Many gathered outside the parliament in Gaza City, setting fire to government cars and firing shots into the air.

Today, the anger is more subtle, but more poignant. Palestinians from all wakes of life have been stunned and disappointed by Abbas, who withdrew Palestinian support for a vote in the U.N. Human Rights Council in Geneva to have the Goldstone report sent to the U.N. General Assembly for possible action, the first of many steps towards possibly establishing war crimes tribunals to investigate Israel's alleged war crimes in Gaza.

Just a few days before Abbas suspended action on the Goldstone report, a poll showed the Palestinian president with a 55 percent approval rating compared to 32 percent for Gaza's Hamas leader Ismail Haniyeh. A new poll has not been conducted yet, but one thing is certain, Abbas today will be lucky to receive double digits. Across the board, Palestinians have been calling for his resignation.

"He is a traitor. He sold the land [to the Israelis] ... now he sold our blood," says Abed M. from Qalandia Refugee Camp just outside of Ramallah.

Abed's sentiments are not unique. Posters which first appeared in Gaza showing Mahmoud Abbas with a black X across his face and the words, "To the trash heap of history, you traitor, Mahmoud Abbas," have made their way to West Bank and even to East Jerusalem.

A few days ago, Gaza professors threw shoes at his defaced image and Hamas has called Abbas' decision "a betrayal of the blood of the martyrs."

Meanwhile, rumors have been spreading like wildfire in the West Bank and Gaza. A news segment aired on al-Aqsa TV, a Hamas-controlled satellite station broadcasting out of Gaza, featured a guest analyst who claimed that Israel threatened to release a video tape showing Palestinian leaders urging Israel to be tougher on Hamas during the Gaza offensive unless the PA backed down over the Goldstone report. Another story circulating on the Palestinian street is about Abbas' children and their investments with Israeli partners. The Israeli government has reportedly threatened the PA that it would refuse to license a new Palestinian mobile phone company, partially owned by one of Abbas' sons, if the PA pushed for the adoption of the Goldstone Report in Geneva.

On Wednesday one senior Palestinian Authority figure, Yasser Abed Rabbo, conceded the move was a "mistake."

"A mistake?" fired back former Knesset member Azmi Bishara on Al Jazeera TV. "A mistake is when I press the wrong floor on the elevator."

Just an hour after the Goldstone debacle erupted, when I called a colleague of mine (who shall remain anonymous) working in Ramallah as a stringer for a foreign news agency to ask him whether this issue will have a lasting damage on the Palestinian Authority, he quickly corrected me and said, "You mean the Vichy Government of Palestine."

Article first published in Huffington Post.