Politicians shift from antigovernment policy to federalism. Few expect inflation, and none conceive of expanding without existing orders in hand, But there are always young turks. Some young managers expand aggressively. Society has fought deflation and depression for 20 years and has closed too much plant and capacity. Demand was pent up for too long.
Folks are eager for houses and whatever they can afford.
Government fiscal policies are expansive. Slowly the young turks get bailed out by mild inflation. Over and over again, the young turks bet and win and are continually promoted until they become the new top dogs. Instead folks speculate against inflation with stocks and real estate-one of which is heavily financed by debt in each wave. The now-older turks keep betting on inflation, adding capacity at a gallop.