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Hi, I'm Bill O'Reilly.  Thank you for watching us tonight.  A big break for the Bush administration.  That's the subject of this evening's Talking Points Memo

Before the Iraq war, I told you that the removal of Saddam Hussein would have positive consequences throughout the world.  Those who oppose the war said I was nuts, that the conflict would hurt America and the world.

Well, first evidence says we were right... As Israel is now compromising with the Palestinian authority, although nothing is certain, but any kind of progress brings peace in that volcanic region closer.  The reason Israel has finally agreed to the formation of a Palestinian state is that the USA has more than 100,000 troops in the area, and Israel's security, vis-a-vis Syria and Iran, is assured while Iraq, obviously, is no longer a threat. 

It is inconceivable to think Israel would have agreed to this compromise if America wasn't armed and dangerous and right around the corner.  So, the Iraq war is already paying dividends in bringing the Jews and Palestinians are closer to peace. 

Saudi Arabia is also under enormous pressure to stop funding terror because the USA now has the Iraqi oil option.  And the Saudis know that if they don't crack down on the fundamentalists, bad things may happen to the kingdom. 

Two-thirds of Americans believe the Saudis are not our friends, and their oil card is much weaker now, so logically, the Saudis must begin to fight Al Qaeda aggressively, another benefit of the Iraq war. 

Iran also feeling the heat.  This country is run by fanatical Islamists who hate America and continues to supports suicide bombers and is developing deadly weapons.  But Iran knows the USA is now standing on its western border, and that pressure is the only thing that can stop their madness.  Yet another benefit of defeating Saddam.

Talking Points could list five more anti-terror factors that have been improved since Saddam was defeated, but suffice it to say that the global strategy designed by Rumsfeld and Wolfowitz is off to a good start. 

The two negatives are continuing lawlessness within Iraq and the vanished weapons of mass destruction.  Those situations must be clarified and soon. 

But overall, the Saddam appeasers appear to be wrong once again.  Things are moving quickly and in the right direction between Israel and the Palestinians, and the terrorists and their enablers are being squeezed in the Gulf. 

No policy will ever be 100 percent effective but good things are happening in the wake of Saddam's demise.  And that's the memo.

And that's The Memo.

The Most Ridiculous Item of the Day

Time now for "The Most Ridiculous Item of the Day"...

A Florida woman wants to get a driver's license, but there are complications.  Sultaana Freeman who is a Muslim, wants her picture taken veiled so her face will be covered on the license, which kind of defeats the purpose of legal identification.  So Sultaana is suing the state saying her religious rights are being violated.

Be that as it may, the entire incident is ridiculous and may succeed in driving more ill will against American Muslims, which would be a shame.

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