When we can observe ourselves by being awake to our thoughts and feelings, we allow our natural higher intelligence, our higher nature, to prevail over the unnatural thoughts and feelings of our self-defeating lower nature.
Self-observation allows you to understand what you are witnessing within you instead of being dominated or devastated by it because your new and higher inner-position as the observer is outside of and so separate from what it is watching. This unique inner-sanctuary must always make the right choices because it has no past investment in any events or their possible outcome and so it is free to select what is intelligent. Intelligence cannot be bound by the momentum of accumulated desires. The silent observer does not think. He sees. This is an important point. To self-observe means that you cannot be self-absorbed. Higher awareness through self-observation increases your field of choices because this elevated inner-position places you high above the game and lets you see all of the players. On the other hand, self-absorption is like being on the field. Not only can’t you see all of the players, but those that you can see are more often than not slamming into you, turning you around and around until you don’t know which way to run. That’s the whole point: Stop running and bumping, and start seeing.