I am going to attempt to reconstruct this dream to the best of my ability, but it was a very long and complicated dream, and there were some very unpleasant points in it. Please do not read on if you are easily upset.
The dream starts with a group of kids and a clown, apparently at some kind of carnival or something like it. The kids are all very young, 3-5 years old. The clown has a small vehicle that is made up to resemble a "choo-choo" train for kids to ride on. He has about 6 kids on this train ride, and he says something to the effect of, "Hey kids! We can ride the train to my house and make cotton candy! I bet you all would like that!"
The clown takes the train to a run down house at a dead end street. It is surrounded by a fence with barbed/razor wire at the top. He stops the train right in front of a small opening in the fence, and immediately a few of the kids start crying. The clown starts yelling, "Shut the fuck up you little shits! Get the fuck in there or I will kill you and your family!"
Once they get to the house and open the door, it is horrific inside. There are all kinds of bizarre and frightening contraptions with buckles, straps, and cuffs. The house is dingy and littered. The clown has taken off his suit and make-up and looks like a tall, skinny, inbred hick. The children are frightened, as if they have some innate sense of their fate.
It is here that the dream starts taking snapshots along a timeline that covers probably 5 or so years. The children, an even mix of boys and girls, undergo a brutal and violent regimen of physical, psychological, and sexual abuse. The man that abducted them is psychotic. He raves to them about how he is going to be the leader of the new world. When he isn't abusing the children, he is training them in bizarre military tactics.
The man sometimes gets visitors, some are permitted inside to do what they want with the children. In fact, one man that visits resembles a young Charles Manson. Charles and the man rape and kill an infant in a high chair.
When the children are old enough to start puberty, the man moves them into a trailer out in a desert in the middle of nowhere. At this point a few other, younger children have since joined them. During the move to the desert, one of the younger children actually gets away and hides from the man. He apparently escapes but it never heard from again.
Keep in mind during all of this time that the abuse and bizarre military training continue, as do the visits from strange people. The man tries to make this outward appearance for himself of a country bumpkin that likes to play the banjo, and that he and the kids are a happy family. He makes videos of himself playing the banjo and tries to sell them.
A day comes where one of the older boys (seemingly 13 or 14) is being yelled at by the man from another room to go in and strap himself in to one of the "rape machines". The boy somehow refuses, and in a rage the man comes charging at him. However, the man trips on something and falls, hitting his head and getting stunned.
The boy jets. He runs like fucking crazy outside and away from the house, though he has no idea where he is or where he is going. He looks back and sees that the man has got back up and is chasing him. The boy runs faster and faster. As he is running, he approaches a cliff. He looks back to see the man closing in on him, so his mind is made up. He doesn't even look, he jumps.
Below him is a gigantic body of water (presumably an ocean). The boy falls for along time before he plunges very deep into the water. He goes so deep that he can see under the cliff face, and there are creatures underneath. One is a gigantic, shark-like creature that swoops right in and bites the boy in half from the waist down. crimson fills the water around him, and then a gangrenous, fetid zombie-like creature pounces on the remains of the boy and quickly devours him.
The man had jumped in as well and saw the fate of the boy. He resurfaces and the coast guard saves him. He describes that one of his sons got lost and died horribly and he was grieving. That take him home with little question or investigation.
Finally, the day comes where the man hatches his "master plan" to dominate the world. he takes all of the children into town and leaves them in pairs at various "strategic locations". They are to wait where he leaves them until he gives his signal. But something happens, the man gets a "message" from the devil. Satan speaks to the man from a fireplace, using the glowing embers and flame as a face. Satan tells the man, "I look forward to seeing you soon. Neither you or I have a doubt you are going to Hell. However, Hell keeps a secret place of sacred punishing flames for sinners like you. You are going to burn in my select fires, a fate far worse than most residents of hell. I will be personally watching over your torment for eternity."
Then, as if possessed, the man drives home and starts pouring gasoline all over himself and the house. When he sets himself on fire. a flame shoots up so large that it can be seen for miles and miles.
The children innately know that it is the end of their captor. They all find each other in that small town, but none of them speak.