Moderating Moderate Moderation

For some reason, when I was driving into work yesterday, I was thinking about the movie Lost Horizon. Specifically, I was thinking about the scene where the John Geilgud's character (Guy from Shangri-La) and Peter Finch's character (American Guy) were walking and talking, and John Geilgud said something like, "Here, we do everything in moderation, including moderation."
How is that possible? If you moderate moderation, then that means you don't do it constantly, which means you sometimes do something in excess. And if you do anything in excess, you're breaking the rule of everything in moderation. I'm confused. And I'm especially confused that I was even thinking about this at all, and I'm concerned that I'm still thinking about it.