But something is happening, the SP500 is increasing (which in USD would be a meaningless statement), but it is also increasing in all (didnt checkk all) other currencies in the world, isnt it?
Because USD is a bubble, other countries wants to keep the USD high since they have lots of USD reserves, meaning that when USA prints money it doesn't weaken the USD. Until the other countries decides to bite the bullet and people stop using the USD as a global reserve currency.
USD a bubble is a huge stretch - you discount all your other comments with a comment as far reaching as this. If you are trying to insinuate that the USD has a higher value than its intrinsic value due to required demand as a result of a being a reserve currency than maybe you have something. That is nothing to do with being a bubble.
The USD is a reserve currency which has many profound effects associated with that it is not a "bubble" asset class at this point.
When the USD expands its currency base it actually does reduce the the USD valuation relative to other countries.
> The USD is a reserve currency which has many profound effects associated with that it is not a "bubble" asset class at this point.
That is the definition of a bubble. If people buy Tesla because they think others want to buy Tesla stocks rather than thinking the company will do well, then Tesla stocks are in a bubble. The same thing applies to USD. It being a reserve currency means it can keep its value without having assets backing up that value, that is how we define a bubble. Of course bubbles can last a long while, which is probably what you mean, but it is still a bubble and it will pop at some point.
Another reserve currency right now are bitcoins. Bitcoins being used as a reserve currency means people buy it to keep the value high, so that their savings doesn't go to waste. I'd still argue that bitcoins are a bubble, like the USD.
Absolutely and literally not a bubble - your definition is in fact, not a bubble:
"It being a reserve currency means it can keep its value without having assets backing up that value, that is how we define a bubble".
FYI: Money has three functions: a store of value, medium of exchange and a unit of account. Fiat currency does not have assets backing it up for that you would need the gold standard that we abandoned in in the 70s.
A bubble:
"Bubble, in an economic context, generally refers to a situation where the price for something—an individual stock, a financial asset, or even an entire sector, market, or asset class—exceeds its fundamental value by a large margin."
And to your bitcoin comment: not even the slightest - bitcoin is not money it does not have the same functions it is a speculative asset investment (taxed on your gains, which money doesn't have).
These conversations are always pointless though. The economy is so high dimensional that any conversation about it is going to be missing most of what is actually happening.
