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Terrorism is a worldwide phenomenon, as the >Global terrorism index< reveals. The aim of terrorism is to take command over our feelings and our imagination to compel us to change our ways of life and release a clash between civilizations. In my discussion, I will concentrate on identity, an individual’s feeling of being unique, having a coherent self while at the same time being part of a large group. My intention is to link the concept of identity to affects and thinking and the loss of reality-testing when the group is dominated by schizo-paranoid anxiety. Two lines of thought stand out in my discussion of terrorism – the power of identity and the search for meaning – both of which are affected by globalization, the rise of a network society, and disenchantment with the world.