Indecent Proposal

(Fox News) - Libyan leader Moammar Gadhafi says President Obama should seek peace with Al Qaeda leader Usama bin Laden. Gadhafi spoke via satellite to students at Georgetown University saying "Terrorism is a dwarf not a giant. Usama bin Laden is a person who can be given a chance to reform. Maybe we can have dialogue with him and find out the reason that led him in this direction."

Gadhafi went on to say that he supports Israel’s right to exist but thinks that its citizens should leave the Middle East. "If you want to preserve this group, the Jews as an ethnic group, Palestine is not really the right place. The Middle East is a sea of Arabs. Take them to Alaska or Honolulu or the Hawaiian islands or the Pacific Islands and they can live peacefully in an isolated setting."