Governments everywhere have been inflating the money supply in an effort to build and maintain an illusion of prosperity. This new money benefits the politically-connected at the expense of everyone else, and is largely funneled into specific sectors of the economy. Real estate and stocks are assets in high demand, and have absorbed a lot of that money, creating the illusion of a booming economy, but the real wealth and production is not there as a foundation.

When the illusion crumbles, it could be acknowledged as a recession, and the stagflation we have been experiencing could worsen; or we could even face hyperinflation. Some kind of correction will be necessary to clear out decades of malinvestment, that much is certain. When, and how severe, is up in the air until we see it.