It is generally assumed that what we hear in our head is what we think and that, when we tell a thought to somebody else, the other person understands what our thought has been. This paper analyzes how we think and what happens when we communicate our thoughts verbally to others and to ourselves. The assumption that we become conscious in language is erroneous: verbal communication is only an intermediary. The conscious experience of verbal communication is a sensory phenomenon. We think through sensory images (see Part I). This natural way of thinking, is a very refined and accurate method of translating thought into consciousness. It expresses our essentially unconscious neural cognitive activity in conscious sensory images: visual thinkers 'see' what they have thought. Why humans use verbal communication to express their thoughts to themselves is difficult to understand as the verbal way is extremely limited. The complex parallel cognitive activity has to be encoded into language tokens which are positioned sequentially as a string of symbols which somehow must express something comparable. Talking to oneself is directed to an imaginary person who is assumed to be the talking person himself. This imaginary person develops with the inner voice in infants and when the child grows up, that imaginary person remains there, somebody he talks to when he thinks and to which he attributes his feelings and his actions. The imaginary person is experienced as the human Self, but actually verbalizes the thoughts of the natural - animal - Self.