President Trump reordering of the international monetary system; ‘Mar-a-Lago Accord’

mars 01, 2025

It could help the administration achieve some of its ambitions, particularly regarding a reduction of the U.S. debt burden and revival of American manufacturing.

Bessent has reportedly said he would push for “some kind of global economic reordering,” according to the Wall Street Journal.

https://www.wsj.com/politics/policy/scott-bessent-sees-a-coming-global-economic-reordering-he-wants-to-be-part-of-it-533d6e71

Essentially, the deal would seek to recruit — or strong-arm by dangling access to American markets, or the American security umbrella — America’s biggest trading partners and creditors into an arrangement that would see them work in concert

to weaken the U.S. dollar, lower American borrowing costs and encourage more manufacturing-related investment in the U.S.

— all while preserving the greenback’s primacy on the international stage.

The main focus of the deal is the dollar

U.S. dollar’s reserve status comes with pros and cons. One of the drawbacks is that it causes the greenback to be perpetually overvalued by boosting demand for reserve assets like U.S. debt.