We create an image of who we are inside our self. The image then becomes very deeply entrenched, and it becomes the thing that we attribute responsibility to - we say "I", "I" did this because "I" wanted to, because "I" am a good person or because "I" am a bad person. The loop is the fact that we represent our selves, our desires, hopes, dreads and dreams: it is the way in which we conceive of ourselves, rather than the way we conceive of Mount Everest or of a tree. And I say it exists entirely in the loop: the self is an hallucination hallucinated by an hallucination.