How does George's reaction to the murder relate to his belief in the dream?

I think George always expected something like this to eventually happen. At the same time he always knew their farm dream would never happen. Lennie is not made of the stuff of dreams. Lennie cannot understand cause and effect. George always knew the two of them were living on borrowed time. That kind of time was not enough to include any kind of dream. 

i think George wanted to give all the guys a blow job.

Nigger

George had the heightened intuition from the beginning tha the farm would not be possible due to Lennie no matter what. This upsets Candy and George but it is the painful truth for them. George is highly upset and without the friendship he will probably remain at the ranch and blow his jack, stay in a cathouse all day and play snooker. Hope this helps.