There are two basic ways to terrorize people. The first is to do something spectacularly horrible, like flying airplanes into skyscrapers and killing thousands of people. The second is to keep people living in fear. Decades ago, that was one of the IRA's major aims. Inadvertently, the Department of Homeland Security is achieving the same thing.
European countries that have been dealing with terrorism for decades, like the United Kingdom, Ireland, France, Italy, and Spain, don't have cute color-coded terror alert systems. Even Israel, which has seen more terrorism -- and more suicide bombers -- than anyone else, doesn't issue vague warnings about every possible terrorist threat.
These countries understand that security doesn't come from a scared populace, and that true counter-terrorism occurs behind the scenes and away from public eye. For earthquakes, the long term security solutions include things like building codes. For terrorism, they include intelligence, investigation, and emergency response preparedness.
The DHS's incessant warnings against any and every possible method of terrorist attack has nothing to do with security, and everything to do with politics. In 2002, Republican strategist Karl Rove instructed Republican legislators to make terrorism the mainstay of their campaign. Study after study has shown that Americans worried about terrorism are more likely to vote Republican. Strength in the face of the terrorist threat is the basis of Bush's reelection campaign.
Bruce Schneier: How Long Can the Country Stay Scared?