Father's wartime heroism, mother's youthful good looks, one's oft-recounted exploits, erstwhile alleged brilliance, and past purported sexual irresistibility - are typical examples of white, fuzzy, heart-warming lies wrapped around a shriveled kernel of truth.
But the distinction between reality and fantasy is rarely completely lost. Deep inside, the healthy confabulator knows where facts end and wishful thinking takes over. Father acknowledges he was no war hero, though he did his share of fighting. Mother understands she was no ravishing beauty, though she may have been attractive. The confabulator realizes that his recounted exploits are overblown, his brilliance exaggerated, and his sexual irresistibility a myth.
Such distinctions never rise to the surface because everyone - the confabulator and his audience alike - have a common interest to maintain the confabulation. To challenge the integrity of the confabulator or the veracity of his confabulations is to threaten the very fabric of family and society. Human intercourse is built around such entertaining deviations from the truth.
This is where the narcissist differs from others (from "normal" people).
His very self is a piece of fiction concocted to fend off hurt and to nurture the narcissist's grandiosity. He fails in his "reality test" - the ability to distinguish the actual from the imagined. The narcissist fervently believes in his own infallibility, brilliance, omnipotence, heroism, and perfection. He doesn't dare confront the truth and admit it even to himself.
Moreover, he imposes his personal mythology on his nearest and dearest. Spouse, children, colleagues, friends, neighbors - sometimes even perfect strangers - must abide by the narcissist's narrative or face his wrath. The narcissist countenances no disagreement, alternative points of view, or criticism. To him, confabulation IS reality.
The coherence of the narcissist's dysfunctional and precariously-balanced personality depends on the plausibility of his stories and on their acceptance by his Sources of Narcissistic Supply. The narcissist invests an inordinate time in substantiating his tales, collecting "evidence", defending his version of events, and in re-interpreting reality to fit his scenario. As a result, most narcissists are self-delusional, obstinate, opinionated, and argumentative.
The narcissist's lies are not goal-orientated. This is what makes his constant dishonesty both disconcerting and incomprehensible. The narcissist lies at the drop of a hat, needlessly, and almost ceaselessly. He lies in order to avoid the Grandiosity Gap - when the abyss between fact and (narcissistic) fiction becomes too gaping to ignore.
The narcissist lies in order to preserve appearances, uphold fantasies, support the tall (and impossible) tales of his False Self and extract Narcissistic Supply from unsuspecting sources, who are not yet on to him. To the narcissist, confabulation is not merely a way of life - but life itself.
We are all conditioned to let other indulge in pet delusions and get away with white, not too egregious, lies. The narcissist makes use of our socialization. We dare not confront or expose him, despite the outlandishness of his claims, the improbability of his stories, the implausibility of his alleged accomplishments and conquests. We simply turn the other cheek, or meekly avert our eyes, often embarrassed.
Moreover, the narcissist makes clear, from the very beginning, that it is his way or the highway. His aggression - even violent streak - are close to the surface. He may be charming in a first encounter - but even then there are telltale signs of pent-up abuse. His interlocutors sense this impending threat and avoid conflict by acquiescing with the narcissist's fairy tales. Thus he imposes his private universe and virtual reality on his milieu - sometimes with disastrous consequences.