The Holocaust continues to shape Jewish consciousness and political thought decades after the genocide, functioning as a dynamic psychological and cultural force rather than a static historical memory. Jewish responses to events like the Entebbe raid and the UN's 1975 "Zionism is racism" resolution reveal how Holocaust trauma directly influences contemporary Jewish political consciousness. Through an analysis combining personal testimonies, theological discourse, and historical interpretation, three interconnected themes emerge: the enduring impact of Holocaust trauma on Jewish collective memory, the complex relationship between Christian responses to Jewish suffering and questions of political power, and the fundamental challenge to traditional concepts of divine omnipotence. The State of Israel emerges as the primary Jewish response to Holocaust trauma, representing a concrete attempt to prevent future Jewish powerlessness. Theologically, the Holocaust demands a reconceptualization of divine power, suggesting a model of divine self-limitation that preserves both God's goodness and human moral agency. This investigation illuminates how the Holocaust's psychological and theological reverberations continue to influence contemporary Jewish experience and shape the evolving landscape of interfaith relations.