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"Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world" - Henry Kissinger

and yet...

"Sooner or later everyone sits down to a banquet of consequences" – Robert Louis Stevenson

You can't avoid consequences for ever

In response to an FT article by Philip Augar on 15th December 2014, entitled 'Bankers, like alcoholics, must first admit they have a problem'

A free market underpinned by the rule of law has consequences - that's the beauty of the system our meddling 'leaders' have done their best to replace with crony capitalism and central planning. In this case the consequences would be going bust and/or going to jail. The US has a Congress that won't allow the crooks to go to jail and a Federal Reserve that won't allow them to go bust.

When there are no consequences you replace responsibility with moral hazard. That's what we've been doing for decades, and now, in my view, this cycle is nearing it's zenith.

There is a cycle for everything, you only have to look around. The longer this goes on the worse it will be when the market cycle in 'consequences' turns, which it will. You can't buck gravity or nature or markets or consequences for ever. We are in a bull market for moral hazard. It will turn, no matter how much the crooks and geniuses in Wall Street, Capitol Hill and the Eccles Building think they can rig the system for ever - they can't.

I'd love to be able to predict how and when this charade will come down, but I can't. I'm not a Central Banker so I'm not smart enough or deluded enough to think I can control or even predict complex systems. But this much I know - when something can't last for ever it doesn't.

Ladies and gentleman, as we look forward to a new year...let the Primary Games begin

China is playing a very long game