Gadhafi: U.S. Faces bloody war if it enters Libya

The embattled Libyan leader says he cannot resign as he does not hold an official position; Gadhafi's forces are escalating a counter-offensive after government opponents seized control of eastern half of country.

Muammar Gadhafi said on Wednesday that Libyans would die in thousands if the United States or other foreign powers enter Libya, and he was ready to discuss constitutional and legal changes without violence.

"Do they want us to become slaves once again like we were slaves to the Italians?" the Libyan leader said, referring to Libya's former colonial power. "We will never accept it. We will enter a bloody war and thousands and thousands of Libyans will die if the United States enters or NATO enters."

[link to www.haaretz.com]