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Yes, it's an Arafat tablecloth. This was part of the festivities after The Scream. One of his campaign workers draped it around his shoulders and hugged him. Apparently there was some dancing, too. I don't recall seeing this live on television, but there were pictures other than this one (which I can't find on the net anymore, who'da thunk? :D). So Howard had some explaining to do the next day.

"No really, I like Jews. I do. We have a lot in common, more than most Jews realize. We share many of the same values. The minor point of difference is that one of my values is full inclusion of people who like to blow up Jews. But other than that, hey, I might as well be Jewish myself. Vote for me!"