One image, as the observer, observes dozens of other images around himself and inside himself, and he says, 'I like this image, I'm going to keep it' or 'I don't like that image so I'll get rid of it', but the observer himself has been put together by the various images which have come into being through reaction to various other images. So we come to a point where we can say, 'The observer is also the image, only he has separated himself and observes.' This observer who has come into being through various other images thinks himself permanent and between himself and the images he has created there is a division, a time interval. This creates conflict between himself and the images he believes to be the cause of his troubles. So then he says, "I must get rid of this conflict", but the very desire to get rid of the conflict creates another image.
Awareness of all this, which is real meditation, has revealed that there is a central image put together by all the other images, and the central image, the observer, is the censor, the experiencer, the evaluator, the judge who wants to conquer or subjugate the other images or destroy them altogether. The other images are the result of judgements, opinions and conclusions by the observer, and the observer is the result of all the other images - therefore the observer is the observed.
Commentaries On Living Series II
Chapter 50 'Convictions--Dreams'