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What I have trouble understanding is what they expect to achieve with a car bomb killing Innocent bystanders. They terrorize but what is the end to the means? What is the point of doing anything like that? It seems more like a high school kid slashing tires just for the fun of it. What can any car bomb killing Innocent bystanders do for their cause? How can it be justified?

The reason is to provoke anger and retaliation by the government or military of those attacked. Hopefully (in the terrorists' eyes) this will lead to a general uprising or war which the terrorists can then exploit for their own ends.