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The dream gives a true picture of the subjective state, while the conscious mind denies that this state exists, or recognizes it only grudgingly.
If I understand this correctly, the dream reveals a more honest picture of the individual's inner state — one not filtered by the ego’s defenses or ideals. The conscious mind, dominated by the ego, often denies or resists this insight because it clashes with its constructed self-image. In examples like the train or the mountaineer, the dream communicates an emotional or psychological truth — perhaps anxiety, fear of failure, or avoidance — which the ego downplays or avoids, because accepting it would involve discomfort, vulnerability, or a challenge to the ego’s control. Thus, the dream serves as a symbolic mirror of what the ego refuses to see.