Here's an episode where John realizes that his dream actions had real life consequences:

Jonh loved spending time in his dream kingdom but it was a rancorous, free-spirited place held together by his powerful dream manipulation magic. Many of his citizens appreciated John's rule, but many were fearful or jealous and resented him for his powers. One night he had a brilliant idea: all his subjects would be given palantirs, small magical crystal balls, and only the royal court could approve and distribute illusion magic for them.

John's palantirs would answer questions the citizens had, but making sure to praise his greatness, and would play wonderful music that glorified him. Time in dreams passes faster than in real life, still the kingdom changed completely in just a few nights. Only the troublesome eastern raiders remained a thorn in his side.

They hadn't spoken in a few days since Kelly was studying hard for her exam, and John spent his free time on his dream kingdom, but Friday was finally here. He dropped by her place right after school. "I've missed you," she said with a big smile on her lips, "I think I did alright." "That's great," replied John, "let's go dancing to celebrate!" Kelly's smile soured, as she took a step back. "Did you not see the Great Dear Leader's speech on your phone? We need to prepare for the war, there's no time for dancing." John could only stare at her dumbfounded. "Don't tell me you haven't registered for service yet, John. I'd have to report you."
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