The Trump Admin's Mara-A-Lago Accords to re-shore manufacturing by devaluing the dollar AND reducing debt makes no sense
Maybe someone can argue why it will work but the more I read about these proposed accords by Trump's economists, the less sense they make.
They want to de-value the dollar in order to re-shore manufacturing, they also want to simultaneously reduce the US debt by getting countries to agree to 100 year bonds of no value for 'security guarantees' AND at the same time, they want to maintain global fiscal dominance?
This has to be the height of arrogance from economists stuck in the 80s idealizing the Plaza accords which no longer would work in a world with a Eurodollar system and a more dominant China, and a world where you've already threatened all your allies and while you have far more debt than in the 80s, thinking that major economies would agree to this.
Ignoring all that though, does this admin not know that the reason the US can spend like a drunken sailor with little consequence outside of a bit of inflation, is the Petrodollar system? If you devalue the USD by a lot, and you cause countries to start dumping your bonds, your purchasing power is going to decrease and you have to take on more debt just to purchase the same things you were buying before, it's like creating a feedback loop of more debt.
The worse part of this though is that they gave a bunch of ideological economists the idea that they could play geopolitics which they cannot, they can't even play economics right.