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Governments and central banks can control one or more, but not all variables in a multi-variable system.

The above is American writer Robert Gore’s Command and Control Futility Principle, the chief implication of which is that regardless of what variable or variables a government or its central bank attempts to control, all variables cannot be controlled exactly, at the same time. A corollary of this principle: due to the impossibility of controlling all variables, they will usually lose control of even the variable or variables they have attempted to control. The more they try to control, the less they will ultimately end up controlling.

The principle is playing out; the inability to control all variables is becoming increasingly evident. Total global debt has reached a saturation point, it no longer produces positive economic returns and economies are weakening under the burden of debt service. The reduction in demand and price deflation has hit heavily indebted commodity producers, who must continue to produce as long as their revenues cover cash costs. Commodity prices have crashed although the world economy is saturated with central bank created liquidity.