I think postmodernism (that is, our current existence construct) is slowly making us all insane, and we all seem to be OK with it because we all agree to participate, but on a conscious level we are unaware we agreed to any of it. At the risk of surrendering shamelessly to cliché, we're all living in The Matrix.
Baudrillard (he wrote Simulacra and Simulation) would have completely understood this.

That said, I hope you find some peace.