Libya's Gadhafi Denies Protesters Even Exist

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Even as anti-government protestors closed in around the capital city of Tripoli, Libyan leader Moammar Gadhafi insisted he's "loved" by his country and no uprising exists.

"They love me, all my people with me, they love me all. They will die to protect me, my people," Gadhafi told ABC News' Christiane Amanpour.

When asked why protestors in the streets continuously called for him to step down, the dictator said those weren't his "people" at all.

"It's al Qaeda," he boldly answered.

In Benghazi, one Libyan resident told ABC, "We don't want him to leave. We want him to die."

Another protestor called Gadhafi crazy saying, "He's lying and he knows he's lying."

U.N. Ambassador Susan Rice said Gadhafi isn't fooling anyone.

"The international community have joined the people of Libya in expressing their outrage at the killing and the slaughtering and the, frankly, crazy behavior you've seen out of Col. Gadhafi," she said.

U.S. Secretary of State Hillary Clinton also issued a veiled threat.

"We are taking no options off the table so long as the Libyan government is turning its guns on the Libyan people," she said.

Gadhafi denied ordering his own people be killed, though the United Nations estimates hundreds, if not thousands have died.

The U.S. Treasury Department has frozen at least $30 billion in Libyan government assets, while the U.S. Navy and Air Force moves closer to the country.

"Gadhafi has lost the legitimacy to govern and it is time for him to go without further violence or delay," Clinton said.

U.S. warships have been deployed closer to Libya to support potential humanitarian and military missions.

In Geneva, U.S. allies are considering establishing a no-fly zone over Libya to protect rebel-held areas from attack by Gadhafi forces.

Meanwhile, violence continued Tuesday in other parts of the Middle East.

In Yemen, thousands of protesters marched in an effort to convince President Ali Abdullah Saleh to step down.

Yemen is a key U.S. ally in the fight against al Qaeda, but Tuesday Saleh accused Washington of instigating the protests.

He said America was only interested in protecting Israel's security and stability.

Also in Iran, police used tear gas to break up anti-government protests in Tehran. Demonstrators are demanding the release of opposition leaders who were arrested Monday.

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