I have pondered this question since the late '70's. My theory is the following:
computers,
In past history, governments always, eventually... hit SOME kind of hard limit that forced reality back into the system. You could only mint so many coins, print so many bills, etc....
With the advent of computers, world leaders now have the ability to create virtually infinite supplies of money.. thus, creating the illusion that "all is well".
Reality still settles in on SOME countries... those that lack the ability to compute their own money... places like, Argentina, Iceland, Greece, etc.... But, not us... not yet.
I'm still not sure: Can the game go on forever?
I think, "No".
Our ability to inflate faster than ever simply has meant that our balloon has filled up BIGGER than anytime in the past. But, eventually... this too shall pop.
The bubble has moved through various parts of the world's financial system. Now, it has landed on sovereign balance sheets... That's the last stop.
Ths only thing missing now is, the initiator.
We in the U.S. aren't producing anything as China manufactures what we use. The government just creates money out of thin air to give to welfare cretins who buy made in China crap. The example the article gives about the guy who lives in the mansion is exactly right. I have thought the same thing. That's us , we don't produce anything but debt.
In 1970 America was the richest country the world had ever seen, with the highest living standards , fastest rising living standards, most job opportunities , most opportunities to make money ever and far above any country in these things. Now we are just like the guy in the mansion who borrows to pay for it all and produce nothing. imagine if we had built on what we had in 1970, where we'd be now with the advances in technology etc. No instead they have grown the government, grown regulations , and allowed china to steal all our industries and technologies. We have no jobs , no opportunities, only debt. imagine if we'd built on what we had in 1970, the rising opportunities to make money, the job opportunities, the wealth etc. Instead government has done everything possible to destroy America with the EPA, and trade agreements with china etc.