This Odd Lots podcast episode interviews Jim Millstein, a debt restructuring expert, about the potential implications of a hypothetical "Mar-a-Lago Accord" involving US debt restructuring. The discussion analyzes the accord's proposed mechanisms—using tariffs and NATO security as leverage to induce foreign debt holders to exchange short-term for long-term bonds—highlighting their feasibility and potential consequences for the US economy. Millstein details the significant challenges, including the limited foreign ownership of US debt and the potential for market disruption if the US threatens default. He also explores alternative strategies, such as creating a sovereign wealth fund using US assets, and discusses the complexities of Fannie Mae and Freddie Mac privatization. The interview concludes by emphasizing the importance of fiscal consolidation and the potential risks of unconventional debt management strategies.
