In 1944, the Bretton Woods Agreement established the US dollar as the world’s reserve currency.
Four decades later, the Plaza Accord of 1985 forced a coordinated effort to weaken it against other major currencies.
Another 4 decades later, Donald Trump’s administration may be engineering the biggest shake-up in currency dynamics since Plaza.
What most analysts and economists are referring to as the “Mar-A-Lago Accord”, is a mix of foreign policies, financial engineering and debt restructuring that aims to boost American manufacturing, weaken the dollar and reduce the overall debt of the US.
Could this really be Trump’s ultimate plan to cement America’s position as the global leader forever?
Where and how did this idea come from?
The Mar-a-Lago Accord started as a theory in November 2024, when Stephen Miran, now a key Trump economic advisor, published a report arguing that the overvalued US dollar was hurting manufacturing and widening trade deficits.
He outlined policies to weaken the dollar, restructure debt, and shift financial burdens onto allies.
Source: Bloomberg
The idea gained traction in February 2025 when Jim Bianco broke it down in a viral X thread, framing it as a full-scale financial realignment rather than just economic tweaks.
He argued that the plan, whether explicitly coordinated or evolving organically, revolves around three core pillars:
Tariffs as leverage and a revenue source
A US sovereign wealth fund to monetize government assets
Debt restructuring by forcing allies to absorb American obligations
Treasury Secretary nominee Scott Bessent has also spoken of a “grand economic reordering”.
Since then, the theory has spread across financial circles, with investors and economists debating whether it’s a necessary correction or a dangerous experiment.
The real reason behind Trump’s tariffs
Trump’s economic strategy starts with tariffs.
Since returning to office, he has threatened new duties on Chinese, Mexican, Canadian and European imports.
On the surface this move looks like a standard trade war, but now perhaps we can see something bigger at play.
Stephen Miran and Jim Bianco argue that tariffs are not just about protecting US industries.
They are also a revenue source.
This aligns with Trump’s “America First” economic approach. Instead of raising taxes on US citizens or cutting social programs, his administration is looking to fund the government by taxing imports.
This creates leverage as well. Mexico, for example, has already deployed 10,000 troops to its border after Trump threatened tariffs last year.
But this policy is a double-edged sword.
Higher tariffs raise costs for American businesses and consumers, potentially fuelling another inflation cycle.
The Federal Reserve is still managing the aftershocks of previous price surges, and could be forced to keep interest rates higher for longer; a risk Wall Street is starting to price in.
A way to monetize US assets?
One of the most radical ideas floating around Trump’s economic circle is the creation of a US sovereign wealth fund.
These funds are typically associated with oil-rich nations like Norway, Saudi Arabia, and the UAE, which invest surplus revenues into global assets.
The US, however, runs a persistent budget deficit.
So where would the money come from?
Treasury Secretary Scott Bessent has hinted at an answer.
In February, he said the government could “monetize the US balance sheet for the American people.”
One way to do this would be to revalue America’s gold reserves.
The US still prices its gold reserves at $42.22 an ounce.
If revalued to the market price of around $2,900, it could create nearly $900 billion in new equity overnight.
This would give the government a new pool of capital without borrowing more money or printing dollars.
Other assets, including federal land, real estate, infrastructure, and even confiscated cryptocurrency, could also be used.
The logic is clear: the US owns trillions in untapped assets but still runs massive deficits.
By putting these assets to work, Washington could create new funding sources without adding to inflation or increasing taxes.
But this strategy has risks.
Financial engineering does not erase real debt, and investors may view these moves as a sign of desperation rather than strength.
If foreign investors lose faith in US financial stability, Treasury yields could rise instead of fall, complicating the administration’s goals.
Forcing allies to pay
Trump has long criticized NATO allies for not contributing enough to their own defense.
During his speech at the World Economic Forum (WEF) in January, he doubled down on those demands, stating:
I’m going to ask all NATO nations to increase defense spending to 5% of GDP, which is what it should have been years ago. The United States has been paying the difference for too long.
But this time, his administration is reportedly considering a financial debt swap.
The idea would force US allies to absorb portions of American debt in exchange for continued military protection.
This could involve swapping existing foreign-held US Treasuries for new 100-year, non-marketable “Century Bonds.”
These bonds, once issued, would not be publicly traded, meaning they would be locked away in foreign central banks, removing them from global debt markets.
The benefit, for the US at least, is less Treasury supply in the open market, which would push interest rates lower, easing debt pressures.
The risk however, is that if allies refuse to participate, Trump could withdraw US military support or impose additional tariffs, creating diplomatic rifts.
Financially, the bigger danger is that forcing allies to absorb US debt could undermine confidence in Treasuries.
The US bond market, which is worth $29 trillion, is the foundation of global finance.
Any sign that Washington is manipulating debt arrangements could make foreign investors question its long-term stability.
Is this a reset or a financial gamble?
The Mar-a-Lago Accord is quickly turning from a theoretical idea into a real-world financial experiment.
Tariffs are being implemented. NATO allies are under pressure.
Washington is openly discussing new ways to manage its $36 trillion debt load.
The truth is that, If everything goes as planned, the strategy could work.
A weaker dollar could boost US manufacturing, reduced debt burdens could lower borrowing costs, and a sovereign wealth fund could unlock new financial flexibility.
But the risks are enormous.
Tariffs could fuel inflation.
Financial engineering could spook investors.
A NATO debt swap could shake trust in US Treasuries.
Trump’s administration is betting that the global financial system can be reshaped without breaking it.
Whether that bet pays off or it triggers a wave of market instability, remains to be seen.
One thing is certain: the status quo is no longer an option.
The Mar-a-Lago Accord, whether official or not, is already happening.
The post The ‘Mar-A-Lago Accord’ explained: Trump’s ultimate plan to reshape the dollar and America’s debt appeared first on Invezz
