Good questions. Wish I had answers, of course. If FED does attempt to “normalize” money towards current house prices, inflation (purchasing power erosion) will be raging. Easier to justify “higher” wages when the value of the dollar is plummeting. Looks like a slight likelihood of hyper-inflation, in my view, followed by the need for a new monetary standard. I really don’t know, though.
Obviously, we (the U.S.) cannot continue to OVER-CONSUME while UNDER-PRODUCING into perpetuity. We can’t all be “fat, dumb, and happy” can we?