Click here to watch the memo.

When all reason flies out the window, that's the subject of this evening's Talking Points memo.

The Middle East war is very hard for The Factor to cover. That's because there is wrong and muddled thinking on both sides and no black/white analysis is sufficient. At this point, millions of people around the world have their minds made up, and rational thinking is impossible for them. They are emotionally tied to either Israel or to the Palestinians, and no matter what happens, that tie will bind.

So this memo is for those of you still thinking about this dreadful situation. Let's start with Arafat.

Here's what he told the press on Wednesday.

(BEGIN VIDEO CLIP)

YASSER ARAFAT, PRESIDENT, PALESTINIAN AUTHORITY: I have to ask his excellency, President Bush, I have to ask the United Nations, is this acceptable, that I can't go outside from this door? Is this acceptable?

(END VIDEO CLIP)

Yeah, it is, Yasser.

You're being punished for allowing murderers to go unchecked for more than a year. You are being humiliated because you don't care about women and children being blown to pieces, or even your own people being devastated in retaliation.

You are a brutal, foolish man who deserves no respect. If Arafat really wanted to help his people, he would resist Israeli incursions with civil disobedience, like Gandhi did, and pointed negotiations. He would make his case articulately to the world and rein in killers like Hamas.

The Palestinians could shut down Israel economically, and they could pursue a fair peace, but Arafat either doesn't want that or is too stupid to figure out that homicide bombers and other terrorists will bring ruin to his people.

On the other side, Talking Points believes Ariel Sharon and his crew want to inflict vengeful pain on the Palestinian people. Now, I have no problem with lashing the PLO leadership and neutralizing the terrorists, but give the destitute common people a break, Mr. Sharon. You have now destroyed the infrastructure of the Palestinians, so pull back and see if the peace process can begin.

If the terror continues, you can always go right back in, no one can stop you.

The hard right in America and in Israel are all hopped up about winning the war. Well, that's just dumb. That war will never be won unless you kill every single Palestinian in the Middle East.

At picture from the Associated Press shows a little girl with a fake bomb strapped to her waist, while her idiot father hoists her in the air.

So Mr. Sharon, are you going to kill this little girl, her father? The hatred for Israel will never lessen until some kind of peace deal is hammered out.

It makes me angry to see Americans failing to understand that right and wrong does not work in the Middle East. The only thing that can work is a deal that gives Palestinians some land and Israel some security. So everyone on the planet should be trying to encourage such a deal.

But no, we have fanatical Arabs wanting to kill all the Jews and fanatical Israel-backers thinking they can control Arab hatred through violence.

Foolish, foolish, foolish.

I despise Yasser Arafat. I strongly suspect Ariel Sharon is no peacemaker. The only hope is that America is strong enough to force the two sides to compromise and stop the madness. That is the only hope.

And that is the memo.

The Most Ridiculous Item of the Day

Convicted Congressman James Traficant told an Ohio radio audience that he is resigned to going to jail and that he would serve his constituents better from prison than any other public servant could being free.

Ridiculous?

Only if he can't make bail.

— You can watch Bill O'Reilly's Talking Points and "Most Ridiculous Item" weeknights at 8 & 11p.m. ET on the Fox News Channel. Send your comments to: oreilly@foxnews.com