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I have come to think of the UFO problem in terms of three distinct levels.
The first level is physical. We now know that the UFO behaves like a region of space, of small dimensions (about ten meters), within which a very large amount of energy is stored. This energy is manifested by pulsed light phenomena of intense colors and by other forms of electromagnetic radiation.
The second level is biological. Reports of UFOs show all kinds of psychophysiological effects on the witnesses. Exposure to the phenomenon causes visions, hallucinations, space and time disorientation, physiological reactions (including temporary blindness, paralysis, sleep cycle changes), and long-term personality changes.
The third level is social. Belief in the reality of UFOs is spreading rapidly at all levels of society throughout the world. Books on the subject continue to accumulate. Documentaries and major films are being made by men and women who grew up with flying-saucer stories. Expectations about life in the universe have been revolutionized. Many modern themes in our culture can be traced back to the "messages from space" coming from UFO contactees of the forties and fifties.
The experience of a close encounter with a UFO is a shattering physical and mental ordeal. The trauma has effects that go far beyond what the witnesses recall consciously. New types of behavior are conditioned, and new types of beliefs are promoted. Aside from any scientific consideration, the social, political, and religious consequences of the experience are enormous if they are considered over the timespan of a generation.
Faced with the new wave of experiences of UFO contact that are described in books like Communion and Intruders and in movies like Close Encounters of the Third Kind, our religions seem obsolete. Our idea of the church as a social entity working within rational structures is obviously challenged by the claim of a direct communication in modern times with visible beings who seem endowed with supernatural powers.
This idea can shake our society to the very roots of its culture. Witnesses are no longer afraid to come forward with personal stories of abductions, of spiritual exchanges with aliens, even of sexual interaction with them. Such reports are folklore in the making. I have discovered that they form a striking parallel to the tales of meetings with elves and jinn of medieval times, with the denizens of "Magonia," the land beyond the clouds of ancient chronicles. But they are something else, too: a portent of important things to come.
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Jacques F. Vallée (Dimensions: A Casebook of Alien Contact)