This is truly bizarre. The Libyan Foreign Minister has declared a "cease fire" against the rebels - as if it only takes one side to make that determination.

The rebels probably won't take Gaddafi up on his offer - unless the UN chickens out and agrees to leave Gaddafi in power.

This reminds me of the Leninists who had taken over Russia in the middle of World War I. They began negotiations with the Germans and discovered that the Kaiser was in no mood to be generous. Accordingly, the Commies simply declared the war over and walked away from the bargaining table.

The Germans were amazed that anyone could be so naive and stupid (wonder what they would have thought of modern day liberals?). After letting loose the German army who promptly gained several hundred miles in Russian territory, the Russians meekly came back to the negotiations and were humiliated by the terms.

The UN shouldn't accept this nonsense but it probably will. They will bargain with the war criminal because deep down, they don't want to overthrow anyone - they just want the violence to stop. The UN will probably insist on some kind of "observer" force to make sure that Gaddafi doesn't take his revenge.

Fat chance. From Strategy Page regarding what happens when Gaddafi men retake a town:

Once the rebels in a town are killed or driven out (or into hiding), the government forces bring in less heavily armed security troops, and contact local government loyalists (or recruits some new ones) and proceed to terrorize the locals into obeying orders and not demonstrating or taking up arms. There aren't a lot of loyalists right now, so terror is the primary weapon. The foreign mercenaries are particularly trigger-happy, and shoot anyone who appears to be resisting. Restoring the old Kadaffi will take months, or years, because of all the killings and the extent of anti-government hatred among the population. Hostility that has been growing for decades is suddenly out in the open. Many Libyans the Kaddafi clan thought they could trust, turned out to be rebels. The Kaddafis only have the support of 5-10 percent of the population. But properly organized (and bribed), this is enough to dominate the majority.