That’s not a bad definition of psychological thought, though I would say “fictional” self, rather than “non-existant”, because as far as the conditioned brain is concerned, the self exists.
Because psychological and practical thought are fused, thought is confused and operates incoherently, but it has no motive, no reason for what it does because it is just articulates the brain’s conditioned response.
If we take K at his word, the brain can be silent, alert, attentive, without thought operating at all, and this means that thought is not intrinsic to awareness, so why ascribe motive to a function that is not essential, but just useful? It’s like blaming the gun for what the shooter does with it.