This is how projection works

The point of projection - according to Freud's study of psychologically dysfunctional people in Victorian England - is to defend a person from his/her own awareness of his/her dysfunction.

e.g.

A fat woman I saw at a clinic in Glorietta Makati - who saw then 40-year old still sexy Carmi Martin walk by - contemptuously called Carmi Martin fat blissfully unaware that she is actually describing herself.

A Wikipedia definition of projection:

"a defense mechanism in which a person unconsciously rejects his or her own unacceptable attributes by ascribing them to objects or persons in the outside world.^[1] For example, a person who is rude may accuse other people of being rude."

Projection is the ego's way of defending itself from the truth of one's situation. 

Raymart Santiago to Mon Tulfo videotaping an angry Claudine: "Ser anong ginagawa nyo? `Anong vini-videohan nyo?'"

Raymart to Media: `I took video evidence of an angry Claudine taking drugs.'

When you can't admit to yourself you're a pathological liar / that you're not happy,  you pass these on to others who are easy targets of your subconscious self-judgments. 

Why do this? 

Because it's easy to throw these onto others than admit that you have these. Admitting these would be the death of your ego = your false self = the image you want to see about yourself. When that ego / false self / flattering image of yourself  dies, you think you would die too. So you think, better destroy others than myself.

So you project because it's the easy way out of admitting the truth - to yourself. Believe it or not, it's easier to admit the truth to others than to your self. 

Projection is what you do because it's convenient for you right now. By right now, you mean, in the short-term. In the short-term you mean = immediate gratification. By immediate gratification you mean, you need it as a quick fix. You're not really solving anything, you're just putting chewed gum on the hole of a leaky roof expecting that when the monsoon rains come, you'll be safe and dry forever. 

Slowly but surely, projection turns to denial. 

Denial is dismissing the truth by pretending to not hear/see/feel it. 

It is you shutting down and hoisting up a fortress to protect yourself from the onslaught of facts.

Dismiss and deny the facts, and you'll be safe. This works in the short-term or until a bigger typhoon knocks you off your illusion and everybody can see the truth except you.

If you still can't see it and/or refuse to, may God help you.