You hit the nail on the head, what you are experiencing are the symtoms of schitzophrenia. The big giveaway was: "it's like my brain think's i'm asleep and it's pulling out memories and the emotions attached to them."
this is a very common symtom of schitzophrenia, when your subconscious mind remains active while you are awake. Your subconscious mind is extremely powerful. It can bring voices and images that blind reality... You begin hearing things, you can eventually begin seeing things... And sooner or later, you begin to think it might be real. So you listen, so you talk back... And it snowballs and begins to get worse. Eventually you're talking out loud to people who don't exist in reality, but you believe they are there, you believe it is reality.
For some people, they link these "revelations" to something spiritual, or back to the earth... Like you've been chosen to do something special.
In other words, sounds like the onset of schitzophrenia, no doubt the paranoia is simply manifesting and getting worse. Go see your doctor and they will likely prescribe something to balance out the chemicals in your brain again.
Good luck,
justin