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What I wrote just two posts above you is actually a quote from Morpheus.
Originally posted by AllSeeingLie
actually, I'm surprised no one has said this already...
the "matrix" is explained in very easy to understand terms by Morpheus in the very first movie. At one part he says something to the effect that, "The Matrix is the version of reality that has pulled over your eyes from the moment you're born." now to sort of paraphrase, "From the moment you're born you are being lied to on just about every subject... from what/who/when/where we came from, what the real power structures are in the world.., you know, the illusion that "the president" has the sole power to steer the country, that the newsmen (and women) wouldn't lie to us. That everything is just "hunky-dorey" (sorry for that poor expression).
I hope this helps clear things as up I found it a little frustrating to see the first replies sort of confuse things a bit more, imo.
PS. there was also mention by Morpheus that some people are helplessly/hopelessly connected to the "matrix" or "fake version of reality." They've gone beyond just accepting these lies but relying on them! Literally relying on the fake version of reality because the truth is too terrifying. Hurts the senses.edit on 8-2-2011 by AllSeeingLie because: left out a word + inserted the PS