Imho, this book offers very valuable insight into the Eastern side of the 
Perennial Philosophy, and this quote in particular offers a view why the 
"different and inconsistent interpretations."   But of course, we may all 
choose a different simile, analogy, or interpretation.   

 
 "The well-known simile of water and waves may be used to show how the same 
experience can be subject to different and inconsistent interpretations.  Which 
is real, the water or the waves?  Water here represents the empty (nirguna) 
Absolute, and waves are its phenomenal manifestation "in" time and space.  In 
these terms, the prajnaparamita  claim that "form is no other than emptiness" 
means that the waves never lose their intrinsic nature as water, since they 
have no self-nature of their own, being simply a form or manifestation of the 
water.  Yet it is also true that "emptiness is no other than form": to 
emphasize only the immutability of water is to miss the fact that water never 
exists in an undifferentiated state but appears only as waves, current, clouds, 
and so on.  So what _really_ exists?  Many answers are possible; the important 
point is that the difference between these answers is not a disagreement about 
what is perceived but about how one chooses to interpret it. 
  One might say that there is only on thing, the water, and the waves do not 
really exist, since they are just the forms that water takes.  Conversely, one 
might claim that there are only waves, since there is no such thing as 
undifferentiated, formless water.  The answer one gives also determines whether 
or not there is permanence.  If there is only the water, and the waves are 
dismissed as mere forms, then there is no change; water remains the same 
despite any oscillations that may occur.  But if there are only waves and if 
the immutability of water is reject as a thought-construction, then there is 
only change and no permanence. 

"Of course, this analogy has its limitations.  We can identify water because we 
can differentiate if from other things (earth, air), where as the sunyata of 
Buddhism and the Nirguna Brahman of Vedanta cannot be characterized in any way. 
 The simile would work better if water were so all-pervasive that we were 
completely _in_ it and _of_ it, and thus unable to distinguish it as an _it_.  
And this suggests another analogy---which may or may no be something more than 
an analogy."   
 
 (Loy, David, 'Nonduality: A Study in Comparative Philosophy', p.262)
 
 



 
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