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This conflict is truly a clash of Civilizations, it is Western Secularism which has brought you democracy, capitalism and the technological revolutions vs an Eastern Theocracy which preaches dogmatism over innovation (which is a miniority in the Islamic world).

The West is vunerable mainly due to the abstract nature of it's financial and monetary systems. Militarily the West is clearly dominent, industriaily the West is dominent. Yet it is the radical behavior of the Jihadist that can shake the Western World through Terrorist action. It is not the small event of beheading an indivdual, or the bombing of a bus or train. We will get used to the idea, and the Western Steamroller will continue on. It is through the BIG Event that the Terrorist causes fear in the hearts of Western Leaders. For if it becomes evident that the Jihadist can strike at will, it WILL CAUSE A CRISIS OF CONFIDENCE in the Western system. It will have shown that nothing is safe and the government cannot protect you or your assets from destruction. If that comes to pass Western capitalism/monetary system will collapse and we are headed for a New Dark Ages.