This paper first looks at the Islamophobia industry and some of its most well know figures. It then looks at relations between Muslims and Non-Muslims in Europe and the United States. I discuss the historical and cultural precedents surrounding Islamic immigration. I show that there are differences in patterns of assimilation between Muslims in the US and Europe. The Islamophobia industry and its impact on geopolitical developments in the Muslim world is also explored. It is concluded that xenophobia in the west ultimately only stifles the democratic processes in the Muslim world.