The way to fight terrorism is to act kindly and justly, and to promote the racial welfare to the extent that everyone is happy and well fed enough that they don't go starting trouble. Also, you get productive enough that the occasional bouts of crazies can be ignored in the long-run--a suicide bomber can only kill once.

Conversely, the way to fight a state such as you propose is to conduct the cheapest attacks possible while causing your enemy to expend lots of resources to fight an ill-defined threat, and to make public statements that are easy to flaunt and vilify.

EDIT: by racial welfare I mean human race, not Caucasian or whatever damn fool distinctions little minds want to draw.