It is an age-old question. The answers are many. The one answer given by Vedanta is that the world itself is an illusion and when we realise our real nature, the illusoriness becomes clear. But, so long we are in illusion, the illusoriness can not be realised. Just as so long we are in dream, we are not aware that we are in dream.
The law of Karma is true, but, the Creation is like a circle, which has no beginning. We have come from God, and go back to God ultimately, when the play is over. We don’t realise that we have come from our God – this is our ignorance.
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The Emblem
" The wavy waters in the picture are symbolic of Karma, the lotus of Bhakti, and the rising-sun of Jnana. The encircling serpent is indicative of Yoga and awakened Kundalini Shakti, while the swan in the picture stands for Paramatman. Therefore, the ideal of the picture is that by the union of Karma, Jnana, Bhakti and Yoga, the vision of the Paramatman is obtained "~Swami Vivekananda