REAGAN'S 1985 PLAZA ACCORD (France, W. Germany, Japan, UK, and USA) devalued the USD in relation to the FR franc, the German Deutsche Mark, the JPY and GBP. USD depreciated for a time. Plaza Accord inflated Japan's (1980s) asset price bubble. By 1990s, it had burst. "Lost decades" ensued.

2025 MAR-a-LAGO ACCORD (MaLA) now emerges as a blueprint for restructuring global trade and monetary relations. Core goal: devalue USD while preserving its role as the world reserve currency, a balancing act to avoid the contradictions of the Triffin paradox. Target: foreign currency manipulators.

HERE IS WHAT THIS FAR REACHING ACCORD seeks to accomplish:

reduce USA trade deficit, by increasing gov't revenues

restore domestic manufacturing, and export competitiveness

realign international economic relationships in sync with foreign policy.

HOW? Rebalancing trade, enacting ccy adjustments without "blowback" (countervailing tariffs and Fx wars). Three key planks emerge:

deploy tariffs, ccy/capital resets, trade agreements tied to national security.

raw on lessons learned from 1944 Bretton Woods and 1985 Plaza Accord, MaLA envisions a sweeping realignment of global trade and money systems.

design a new off-ramp for Treasury issuance, namely stablecoins to offset weaker foreign demand of standard bonds and bills [Reuters Image]