My employer has basically told me to go to hell. Should I quit or ride it out?

ride out by reported.

Consider what you have to lose. Look around, check if you have any other employment opportunities.
It is much better to tell your boss go to hell when you really have the power to do so.

You can also start checking out some good networking and business interview techniques.

You can check out how you really should decide on getting the job or not:
http://www.bukisa.com/articles/212727_th…
http://www.bukisa.com/articles/212726_bi…
http://www.bukisa.com/articles/213643_it…

Report him, See what you can do, Thats what i'd do.