You can experience that dreamlike quality by relating with sitting meditation practice. When you are reflecting on the breath, suddenly discursive thoughts begin to arise; you begin to see things, to hear things, and to feel things. But all those perceptions are none other than your own mental creation. In the same way, you can see that your hate for your enemy, your love for your friends, and your attitude toward money, food, and wealth are all part of discursive thought.
Regarding things as dreams does not mean that you have become fuzzy or woolly, that everything has an edge of sleepiness to it. You might actually have a good dream, vivid and graphic... For instance, if you have participated in group meditation practice, your memory of your meditation cushion and the person who sat in front of you is very vivid, as is your memory of your food and the sound of the gong and the bed you slept in. But none of those situations is regarded as completely invincible and solid and tough. Everything is shifty.
Things have a dreamlike quality. But at the same time, the production of your mind is quite vivid... what you perceive is a product of your mind, using your sense organs as channels for the sense perception.
From Training the Mind & Cultivating Loving-Kindness by Chogyam Trungpa , copyright 1993 by Diana Mukpo.
(Official Chogyam Trungpa Website)
Published by arrangement with Shambhala Publications, Inc., Boston.
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This site provides an on-line database of commentaries on the Tibetan Buddhist meditation practices of lojong (Mind Training) and tonglen.