I wasn't convinced at first, but it makes sense after you think about it on a longer time scale.
The amount of sovereign debt is just unpayable in any real terms ( basket of goods ).
75 million baby boomers ! with rising projected fiscal deficit from here on out.
The easiest solution is to let the currency take a hit and default nominally.
It won't cause a huge amount of inflation, only ipads, and foreign imported goods gets slightly more expensive.
I also do not think other countries devalue as many pundits think.
CNY has been trying to gain purchasing power, as a side karma benefit, the CCP gets to own people taking money out of china and moving into USD, when USD falls by 40% then nowhere is safe ! It reduces pressure from chinese citizens to move assets abroad.
The amount of dollar denominated debt globally is just too high, so trump is right.
It always gets devalued!! Look at the USD trend since the fed was created over 100 yrs ago.
Soon $100 will be the new dollar bill.