A teacher in school once threatened his pupil that he would cut off the pupil's head and hang it on the wall so that the child could see how his head had been cut off. The child became frightened and stopped his mischief. Similarly, the miseries of the pure soul and the disruption of his self-identification are managed by the external energy of the Lord, which controls those mischievous living entities who want to go against the will of the Lord. Actually there is no bondage or misery for the living entity, nor does he ever lose his pure knowledge. In his pure consciousness, when he thinks a little seriously about his position, he can understand that he is eternally subordinate to the mercy of the Supreme and that his attempt to become one with the Supreme Lord is a false illusion. Life after life the living entity falsely tries to lord it over material nature and become the lord of the material world, but there is no tangible result. At last, when frustrated, he gives up his material activities and tries to become one with the Lord and speculate with much jugglery of words, but without success.
These activities are performed under the dictation of the illusory energy. The experience is compared to the experience of one's having his head cut off in a dream. The man whose head has been cut off also sees that his head has been cut off. If a person's head is severed he loses his power to see. Therefore if a man sees that his head has been cut off, it means that he thinks like that in hallucination. Similarly a living entity is eternally subordinate to the Supreme Lord, and he has this knowledge with him, but, artificially, he thinks that he is God himself and that although he is God he has lost his knowledge due to maya. This conception has no meaning, just as there is no meaning to seeing one's head being cut off.
From Srila Prabhupada's purport to SB 3.7.10