🚨 Trump's "America First" Security Strategy & the Global Market Shock 🚨

The new White House National Security Strategy isn't just about defense, it's a global fiscal expansion blueprint that's sending ripples through Bitcoin, Gold, & Bond Yields. A deep dive into the unexpected market reality.

The core of Trump's new National Security Strategy (NSS) is a demand for significantly increased global fiscal and military spending. The "America First" agenda is backed by a mandate that NATO allies raise defense spending to a whopping 5% of GDP (up from the long-standing 2% mandate). Japan and South Korea are urged to follow suit. This is a massive fiscal commitment.

Monumental expenditure requires monumental funding, which means more government borrowing (bond supply) worldwide. This higher bond supply drives up bond yields and the cost of capital, fueling inflation. This severely complicates interest rate cuts by central banks. The odds of steep, rapid-fire rate cuts are now bleak, as fiscal policy seems set to overshadow monetary policy and keep yields elevated, even if the Fed cuts 25 bps next week.

This environment of increased borrowing and persistent inflation is a classic setup for safe-haven assets. Gold has surged 60% this year, acting as a clear hedge against this exact uncertainty, even with the US 10-year yield stubbornly above 4%. The market is recognizing Gold's reliable role in a "fiscally emboldened" world defined by higher debt.

While proponents pitch Bitcoin as "digital gold," the asset is facing a crucial test under these new macro conditions. BTC is down nearly 4% YTD, failing to keep pace with gold's massive rally. The question remains: Can Bitcoin evolve into a true inflation hedge and reliable safe haven?

Adding to the inflation pressure is the NSS’s explicit statement that the "era of mass migration is over." A reduction in imported cheap labor means wages could become sticker, directly contributing to higher, more persistent inflation in the U.S. This macro trend further supports the thesis of a protracted period of elevated yields and inflationary pressures.