Ok, so you are in a war with some slag in a bar. What does she do? Shouts at you swears at you, even shoves you a bit? You can choose to walk up to her, pull her hair and get in a very painful brawl, possible ending in jail. Or, you can stand there and smile angelically at her, nod at her beautiful language, clasp your hands in a silent prayer that her crops be plentiful this coming harvest. She stands there, shoves you a bit more, and shuffles off in bemusement.
Both are fighting, but one doesn't involve voilence.
Don't dig to deep into this, at the end of the day it's a play on words like most philosphical answers, but it certainly shows you how you can beat something by laughing in its face rather than hitting it back.
Next time you feel panicy, say hi panic. Nice to see you. Nice weather isn't it? Tell youself it is only feelings, let them pass, feel them, be them, they will go.