The big story, of course, is the barbaric Hamas attack on Israel, the terrorist group’s killing of innocent people in Gaza, beheading children, murdering grannies in their beds, and taking Israeli and American hostages. At last count, 1,799 Palestinians, 1,300 Israelis, and 27 Americans have been killed, and there are 14 Americans unaccounted for.

President Biden gave a speech calling the attack evil and pledging to stand with Israel, but he made no mention of Iran. Speaking of Iran, a Wall Street Journal editorial today referred to Iran as the ventriloquist for Hamas. Spot on.

We have learned that after the Biden administration’s Afghanistan pullout catastrophe, Hamas started a two-year planning process to attack Gaza, and one of the terrorist group’s top representatives noted clearly that none of this could’ve been done without the financing and planning capabilities of Iran.

Then, Secretary Yellen came out and claimed there’s been no relaxation of the Iranian sanctions mandated by U.S. law, but she had no explanation for the fact that Iranian oil revenues have jumped to somewhere north of $60 billion from almost nothing three years ago; that oil export sales to China have increased to more than $30 billion from roughly $7 billion; and that Iranian foreign exchange reserves somehow skyrocketed to something like $70 billion from about $4 billion.

We’re awaiting further explanations from Madam Secretary.

The Israeli air force began its counterattack against Hamas with special operations spotters on the ground to assist in the precision bombing. The Israeli Defense Force has begun infiltrating Gaza to scope out hostages, and outline their strategy.

As of this reporting, IDF ground forces have begun the campaign in Gaza City, with perhaps 300,000 troops or even more to complete the mission. What is the mission here? The brilliant General Jack Keane said this last night: “And, Larry, I mean, we got to be upfront about what needs to be done here. We need to kill them. That’s the only thing that stops these guys. Yes, sir. They are absolutely committed to this barbarism. And we got to go in and kill them, just like we did with ISIS, just like we did with Al Qaeda.”

General Keane, a great warrior himself, is spot-on right, and I don’t understand why I’m watching so many hosts and guests on TV with their continued hand-wringing that casualties will be suffered. This is war. Israel didn’t start this war. Iran-backed Hamas started this war.

They wanted to wipe Israel off the face of the map. They also want to wipe America off the face of the map. So Israel, the only democracy in the region and America’s greatest ally, Israel and America have to fight back to defend their freedom and their existence. That is war.

Of course, our nation’s elite universities don’t understand any of this, and they’re all coming out in favor of Hamas, which is the most bizarre cultural political development, with a strong dose of antisemitism, that’s been brewing for three decades from the battles of the insane far left. With some exceptions, most of the university presidents refuse to stand up and fight against antisemitism and in favor of freedom and democracy. Pathetic. 

Fortunately, some businesspeople and even finally some students have revolted against the crazies. 

Meanwhile, all my friends in the House Republican conference have not distinguished themselves this week, because they can’t settle on a new speaker. The conference is meeting around the clock, but it seems to be spending most of its time getting in touch with its feelings rather than voting in a new speaker. Personally, I love 12-step meetings, but the GOP needs a speaker ASAP.

On more mundane matters, two important inflation reports came in stronger than expected, guaranteeing that high interest rates are going to stay high or ever move higher in the period ahead. Consumer confidence fell and inflation expectations rose. Mortgage rates are closing in on 8 percent and 10-year treasuries are heading toward 5 percent. Stocks have survived, and thus far there’s no oil blow-up in the Middle East.

So, there are threats to freedom and democracy everywhere, at home and abroad, but I don’t think America’s in decline. I think the Washington, D.C., swamp is in decline. And we can and will save America. 

From Mr. Kudlow’s broadcast on Fox Business News.