$TRUMP The Global Military Spending is the New Inflationary Push for $BTC
We need to talk about the new National Security Strategy (NSS) from the White House, because this is a red flag for inflation and dramatically complicates the hope of seeing quick rate cuts.
This strategy is, in essence, an order for global fiscal and military expansion. The key point is that it demands NATO allies to raise their defense spending to 5% of GDP (Gross Domestic Product) which is the measure used to determine the total value of all final goods and services produced in a country during a specific period of time. (It is the main indicator for measuring the economic health of a nation).
And how is this paid for? With more government borrowing and more bond issuance worldwide. This has two direct effects that concern us: first, it raises the cost of capital, making it much harder for the Fed to lower rates. Second, the strategy also suggests that the influx of cheap labor will decrease, which keeps wages high and thus, inflation 'sticky'.
This entire scenario is historically bullish for assets considered hedges against inflation, especially gold. Although Bitcoin ($BTC) has not proven to be the perfect 'Digital Gold' in this cycle (it has fallen nearly 5% this year, while gold has risen 60%), this global increase in spending is the strongest long-term argument for an asset with programmed scarcity like $BTC.
-The inflation generated by global military spending is a tailwind you cannot ignore. Reassess your position in BTC this thesis.
Do you think that the increase in global military spending will force investors to seek refuge in Bitcoin, or will traditional gold maintain its dominance?
Always do your own research Dyor!.❤️😉
