From The Philosopher's Stone by Israel Regardie:
"A vast amount of material exists in early psycho-analytical literature on the subject and significance of the Dragon. A great deal of this is well synthesized in The Psychology of the Unconscious by Jung. Briefly it may be said that the Dragon refers to the instincts, to undomesticated libido. We have already defined the libido not as sexual desire alone as the Freudians claim, but as the sum total of all psychic energy, the life force peculiar to any organism. Undomesticated libido would therefore represent that portion of psychic energy which has not yet been recognized and hence employed by consciousness. In consequence, it remains in a crude, undeveloped, unutilized and undomesticated anxiety which so to speak poisons this energy, it comes to represent a source of real danger to the individual. Whatever within cannot be dealt with invariably becomes a psychic projection, an objective something which the undeveloped psyche can suppress, or from which it may make frantic efforts to escape, or deal with in other ways.
All primitive and archaic concepts of the devil, satan, evil, etc., represent just such projected or objectified psychic energy that has not been recognized nor included within the scope of the ego. Ignorance as to its true nature gives rise to further fear, and this emotion invests the psychic object with innumberable qualities and predicates born and bred from fantasy. The dragon, which is precisely such a projection of feared because untamed psychic energy and content, is symbolic of the instinctual nature. It represents enormous power and dynamic energy, the emotional drives and urges which are at the foundation and root of all conscious development. Accepted and thus brought within the possibility of development and utilization-for denial and repression transforms into a fearful life-rending monster-it serves as a trained and faithful beast whereupon the psyche may ride and proceed upon its individual evolution."
What a great couple of paragraphs.
The energy that we use to create bad and evil or fear and anger is the same energy that is at our disposal for good and altruistic, love and joy. The patterns must simply be shifted. All one has to do is admit to himself that he is not the best he can be. You are not the person you want to be and could easily be. Stop fantasizing about the great person you are and bring those repressed evils to light.
Evil is good. We live in a fallen world. The evil is the means toward the good or the light. One doesn't fight the dragon or go against nature. We accept it and show it love and use it for our own good. Acknowledge it as part of us, show it love, show it forgiveness and bring it in.
The Christian Scientists claim that there is no evil or sin or disease. And they are correct in one sense. In the world of absolute there is none but God's love. The problem is we are fallen. We live in a world of duality. We didn't fall into this world balanced or if we did we gradually lost touch with this balance (God). One doesn't easily find the good and stay there. We are pulled from every direction. We get excited and let our emotions go high and we will at some point be driven back down. At some point or another one descends into sin. Most people today are afraid of anything evil and simply repress it, they pretend the boogeyman isn't there. If you simply admit he is there he will disappear. Our continual repression of his existence guarantees his indefinite staying power. The dragon remains to torture us and rear his ugly head whenever he likes. Our ignorance begets a total lack of control. Self Consciousness, becoming aware of the dragon and taming it eventually brings control. Control means one can take over or he can step aside. This is true development.