Adam Curtis - The Power of Nightmares (Part 2): The Phantom Victory

In the second episode, Islamist factions, rapidly falling under the more radical influence of Zawahiri and his rich Saudi acolyte Osama bin Laden, join the Neo-Conservative-influenced Reagan Administration to combat the Soviet Union's invasion of Afghanistan. When the Soviets eventually pull out and when the Eastern Bloc begins to collapse in the late 1980s, both groups believe they are the primary architects of the "Evil Empire's" defeat. Curtis argues that the Soviets were on their last legs anyway, and were doomed to collapse without intervention.

However, the Islamists see it quite differently, and in their triumph believe that they had the power to create 'pure' Islamic states in Egypt and Algeria. However, attempts to create perpetual Islamic states are blocked by force. The Islamists then try to create revolutions in Egypt and Algeria by the use of terrorism to scare the people into rising up. However, the people were terrified by the violence and the Algerian government uses their fear as a way to maintain power. In the end, the Islamists declare the entire populations of the countries as inherently contaminated by western values, and finally in Algeria turn on each other, each believing that other terrorist groups are not pure enough Muslims either.In America, the Neo-Conservatives' aspirations to use the United States military power for further destruction of evil are thrown off track by the ascent of George H. W. Bush to the presidency, followed by the 1992 election of Bill Clinton leaving them out of power. 

The Neo-Conservatives, with their conservative Christian allies, attempt to demonize Clinton throughout his presidency with various real and fabricated stories of corruption and immorality. To their disappointment, however, the American people do not turn against Clinton. The Islamist attempts at revolution end in massive bloodshed, leaving the Islamists without popular support. Zawahiri and bin Laden flee to the sufficiently safe Afghanistan and declare a new strategy; to fight Western-inspired moral decay they must deal a blow to its source: the United States.