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"For an imperfect but vivid concrete analogue to this curious abstract phenomenon, think of what happens when a TV camera is pointed at a TV screen so as to display the screen on itself (and that screen on itself, etc.)- what in GEB I called a "self-engulfing television", and in my later writings I sometimes call a "level-crossing feedback loop."
When and only when such a loop arises in a brain or in any other substrate, is a person-a unique new "I" - brought into being. Moreover, the more self-referentially rich such a loop is, the more conscious is the self to which it gives rise. Yes, shocking though this might sound, consciousness is not an on/off phenomenon, but admits of degrees, grades, shades. Or, to put it more bluntly, there are bigger souls and smaller souls."
Douglas Hofstadter (born February 15, 1945) is a mathematician, cognitive scientist, and Pulitzer Prize winning author.
Biography information from Wikiquote
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In short, there are surprising new structures that looping gives rise to that constitute a new level of reality that could in principle be deduced from the basic loop and its detailed properties, but that in practice have a different kind of “life of their own” and that demand — at least when it comes to extremely finite, simplicity-seeking, pattern-loving creatures like us — a new vocabulary and a new level of description that transcend the basic level out of which they emerge.