The meaning behind the phrase "Nothing is True, Everything is Permitted"

Heh, the Title is a little misleading. Sorry about that. My cousin is a know-it-all, and had issue with the phrase when I was playing Brotherhood the other night. Care to comment?

Honestly, I have my own understanding of the phrase:

Where others blindly follow the truth remember, Nothing is True.
- This means that you need to think for yourself. Following and listening to something blindly, without understanding it, and what it entails is foolish. I won't bring religion into this, because I respect other people and their choices on religion. But to follow a faith and change your life just by the words of something that could have easily been changed and manipulated by those who would hunger for power and dominion over man is kind of stupid.

Where others yield to their morals remember, Everything is Permitted.
-This means that just because something or somebody tells you that you must do something because it breaks their moral standards, doesn't mean that you must abide by them. If you want to run on rooftops for laughs, then go ahead and do it. If you injure yourself...weeeell that is on you my friend. You don't need moral codes and books to tell you what is right and wrong in this world, you have to make up your own mind about those types of things. If it seems wrong to you, don't do it. (Unless you are an Axe murderer...in that case, I wouldn't want to know what you think is wrong...)

Sorry for the rant, just when somebody mentions this, I get all... you know...

It isn't even really about the phrase that gets me. It is that people who don't understand the meaning behind things they misjudge the game because of the phrase itself. Really...

wow this is so true. this problem is often just forgotten. people must understand the phrase if they want to understand the actual game. it's a must that people read this.

Hooded Man