Mar-a-Lago Accord

And then you add in Stephen Miran, who is the architect of Trump's economic strategy.

He's now with the Fed, the Mar-a-Lago Accord.

He argues the dollar's reserve status has made it too strong, hurting American manufacturing.

That's Triffin's dilemma.

[chuckles] Um, there is one case where intervention in major currency markets did seem to work, and that was in September nineteen eighty-five in the so-called Plaza Accord.

People in the current administration refer to that and sometimes talk about a Mar-a-Lago Accord.

Does the Plaza Accord offer a blueprint for currency intervention that could be successful today?

Well, I would cite a number of, uh, differences and also limitations of the Plaza Accord.

He called for a trade agreement with China and said that Congress should reduce the federal deficit to 3% of GDP, saying that the very value of money is at stake.

While I agree with Dalio that the trade chaos that we have seen in recent weeks is bad for the United States, and I worry that other unconventional ideas that some of Trump's economic advisers have been discussing like Stephen Moran's Mar-a-Lago Accord are extremely worrying, I don't agree that the dollar will lose reserve currency status any time soon, simply because there is no reasonable alternative to the dollar right now.

If you are interested, I will discuss Moran's Mar-a-Lago Accord towards the end of the video.

The US dollar first took on reserve currency status in 1944 as World War II was drawing to a close.

That year, representatives from 44 nations met at a hotel in Bretton Woods, New Hampshire to hammer out a new financial system for the global economy.

A complete repeal might be politically difficult, but Trump appears to have complete control over all branches of government, so who knows, he could even keep the subsidies in place and allow their use only for nuclear and fossil fuel projects.

Predicting Trump's economic policies has been impossible so far as they appear to change on a day by day basis, but this seems like something that he would love to cut.

There has been a certain amount of talk recently about how the Trump administration could radically restructure and refinance US debt under what is being called the Mar-a-Lago Accord.