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Why Does the GOP Let the CBO Run the Show?

I know a lot of people are wondering why it’s taking so long to get the federal budget off the ground. On this Talk it out Tuesday, let’s pull back the curtain and look at one of the biggest culprits behind the gridlock: the Congressional Budget Office. That’s right—the CBO. While most Americans go about their day assuming elected officials are leading the charge on fiscal matters, the truth is, an unelected team of bureaucrats with outdated economic models is quietly calling the shots. It’s time we start asking the tough questions about why Congress continues to outsource its authority to an agency that’s more often wrong than right.

Why Does the GOP Let the CBO Run the Show?

Since its creation in 1974, the Congressional Budget Office (CBO) has used “static scoring” to evaluate legislation—an accounting method that assumes taxes, regulations, or spending policies have no real effect on behavior. In simpler terms, it means if Congress cuts taxes, the model assumes no one works more, invests more, or hires more as a result or if taxes are raised also no change in behavior. It’s a system built for bureaucrats, not entrepreneurs. In this outdated framework, businesses don’t hire, investors don’t adapt, and consumers apparently make decisions in a vacuum. For nearly half a century, this rigid model has shaped how Congress thinks about the economy—smothering innovation, ignoring market responses, and discouraging bold reforms in favor of budgetary bookkeeping.

But here’s the real kicker: over time, the CBO and its unelected staff have slowly but surely taken control of the entire budgetary process—wresting authority away from the very people Americans elect to make these decisions. Instead of empowering lawmakers to debate and decide based on principles, priorities, and public input, Congress now tiptoes around the projections of a federally funded fiefdom of economists. It’s a quiet bureaucratic coup, and both parties—especially Republicans—have been complicit in letting it happen. Remember the 2003 Bush tax cut proposal? The CBO’s static scoring predicted a bleak fiscal outlook and helped fuel opposition within Congress, discouraging more aggressive reforms that could have delivered long-term growth. Lawmakers today don’t lead with vision—they wait for a spreadsheet to tell them what’s “possible.” This is the antithesis of the MAGA movement, which is about restoring power to the people, unleashing American potential, and rejecting the defeatism of bureaucratic groupthink.

Let’s get one thing straight: the CBO is not the Constitution. Its forecasts are not commandments etched into stone tablets. They are, at best, educated guesses—at worst, bureaucratic roadblocks dressed up in academic jargon. And yet, Republicans continue to treat them like a higher authority. This isn’t fiscal responsibility—it’s intellectual surrender. It’s a self-imposed straightjacket that keeps bold, pro-growth policies locked in the closet while America’s economy begs for leadership.

Need proof? Just look at Obamacare. The CBO promised the Affordable Care Act would cover 32 million more Americans by 2019 for just $940 billion. Reality check: it delivered only 14 million enrollees—a 56% shortfall—at a final cost of $1.7 trillion, nearly double the original price tag. That wasn’t a harmless rounding error. That was a catastrophic failure with real-world consequences. Patients suffered, providers buckled, and taxpayers got fleeced—all because Congress outsourced its judgment to an outfit that couldn’t hit water if it fell out of a boat. And what did Republicans do in the face of this glaring miss? They grumbled, held hearings, and issued press releases—but ultimately allowed the CBO to keep its grip on the legislative scorecard, reinforcing the very system that burned them.

And if this kind of blunder happened in the private sector? At a Fortune 500 company, any analyst who missed projections that badly would be marched out the front door with their belongings in a box. No CEO worth their salt would tolerate that level of incompetence—because billion-dollar mistakes in business mean lost jobs, tanked stock prices, and wiped-out shareholders. But in Washington? The CBO keeps chugging along, immune to consequences, while Republicans use its flawed forecasts as an excuse to do nothing.

Ronald Reagan didn’t ask for permission from the scorekeepers to cut taxes and unleash American dynamism. He trusted in the ingenuity of the American people—not in the spreadsheets of Washington technocrats. It’s time for today’s GOP to take a page from that book. Stop genuflecting before the CBO’s flawed models. Stop hiding behind “neutral scores” that are anything but. Stop pretending that the future of American prosperity is a math problem only a government agency can solve.

This country didn’t become great because of cautious forecasts—it became great because of visionary risk-takers who challenged the status quo and dared to believe in growth. If Republicans want to lead again, they need to start acting like it. Find your backbone. Reclaim your economic imagination. And for once, tell the CBO to take a seat in the gallery—where observers belong—not at the head of the policymaking table.

The future of America doesn’t belong to the bean counters. It belongs to the builders. So let’s start building again—by pushing for dynamic scoring that reflects how people and businesses actually respond to policy changes, and by opening the door to alternative scorekeepers who value growth over guesswork. The path forward isn’t just about rejecting bad numbers—it’s about reclaiming the power to shape America’s future without bureaucratic permission slips. We will never begin to close the deficit created by bureaucrats by leaving it up to them. As President Trump put it best, “We will no longer surrender this country, or its people, to the false song of globalism.” That includes surrendering our economic destiny to bureaucrats with bad models and worse instincts. It’s time to take back the pen and write our own future—with growth, confidence, and American grit.

 

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The Heart of American Innovation: Celebrating Small Business Week

As National Small Business Week concludes, we celebrate the cornerstone of our economy: small businesses. Take Iowa as an example of a typical state in the Heartland, or North Carolina, where a growing tech corridor has given rise to thousands of small businesses, where small businesses comprise 99.3% of all enterprises and employ nearly half of the state’s workforce. This vibrant entrepreneurial spirit mirrors the nation’s, where small businesses drive innovation, create jobs, and fuel economic growth. Remarkably, every trillion-dollar company that dominates today’s global markets began as a small business with a bold idea, a determined founder, and a vision for something greater.

Consider the humble beginnings of America’s corporate giants. Apple, now valued at over $3 trillion, started in 1976 in Steve Jobs’ garage, where he and Steve Wozniak built the first Apple computer. Their mission to democratize technology transformed a small startup into a global leader. Similarly, Amazon, another trillion-dollar titan, began in 1994 as an online bookstore in Jeff Bezos’ garage. Its focus on customer convenience reshaped retail and cloud computing.

Microsoft, with a valuation exceeding $3 trillion, was founded in 1975 by Bill Gates and Paul Allen, two young programmers crafting software to power personal computing. Their small venture became a cornerstone of modern technology. Alphabet, Google’s parent company, originated in 1998 as a dorm-room project by Larry Page and Sergey Brin. Their search engine evolved into a conglomerate leading in artificial intelligence and cloud services.

These stories embody the American Dream, as told by people like Maria Gonzales, who launched a bakery in rural Kansas with just her grandmother’s recipes and a food truck. Today, she employs 15 people and supplies regional grocery chains. “It started as a dream,” Maria says, “but in America, dreams come true if you’re willing to work for them.” born in small businesses across states like Iowa, where innovation thrives in communities large and small. The U.S. Small Business Administration reports that small businesses employ 46% of the nation’s private workforce and contribute 44% of economic activity. They are the testing grounds for big ideas, where entrepreneurs take risks that spark breakthroughs.

As we honor National Small Business Week, let’s recognize the potential in every small business, from Iowa’s Heartland to every corner of the nation. The next trillion-dollar company could be emerging in a small town, a bustling city, or a quiet suburb. By supporting small businesses—through shopping local, advocating for regulatory reform to reduce burdensome red tape, expanding access to capital through community banks and SBA-backed loans, offering mentorship programs, and integrating local businesses into supply chains—we patronage, policy, and community engagement—we cultivate the seeds of tomorrow’s giants. Let’s celebrate the entrepreneurs who dare to dream big, knowing that every global leader was once a small business with a spark of possibility.

Here’s to America’s small businesses—today’s innovators, tomorrow’s titans.

And let’s be clear: only in the United States of America—where supportive infrastructure like SBA loans, tech incubators, and startup grants give entrepreneurs a real shot—can the little guy in a garage go toe-to-toe with global giants—and win. We are the land of opportunity, fueled by free markets, faith in innovation, and the unshakable belief that with enough grit and guts, a startup can become a trillion-dollar powerhouse. That’s not just a dream—that’s American exceptionalism in action. So let’s double down on freedom, enterprise, and the entrepreneurial spirit that made this country great.

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Government Macro Economics Uncategorized

The GENIUS Act – A Strategic Leap Toward Stablecoin Hegemony for the U.S. Dollar

The Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, commonly known as the GENIUS Act, represents a pivotal moment in the evolution of American financial policy. As the U.S. Senate prepares to vote on this legislation, the act’s potential to reshape the global financial landscape by reinforcing the dominance of the U.S. dollar through stablecoin innovation cannot be overstated. Chamath Palihapitiya, a prominent venture capitalist and influential voice in technology and finance, has championed the bill, stating on May 8, 2025, “This bill is smart and needs to pass when up for vote today. It’s the most obvious way of shifting past petrodollar hegemony for the USD and replacing it with stablecoin hegemony for the USD.” His endorsement underscores the act’s transformative promise, and a closer examination of its merits reveals why it deserves bipartisan support.

The GENIUS Act establishes a comprehensive regulatory framework for payment stablecoins—digital assets pegged to a fixed monetary value, typically the U.S. dollar—designed to ensure financial stability, transparency, and consumer protection. By defining clear rules for issuers, the legislation addresses long-standing regulatory ambiguity that has hindered the stablecoin market’s growth in the United States. The act permits entities, whether associated with insured banks or operating independently, to issue stablecoins under either federal or state oversight, depending on their market capitalization. Issuers with over $10 billion in stablecoins face joint state-federal regulation or state-administered federal standards, while smaller issuers may opt for state-specific regimes that mirror federal requirements. This dual framework balances innovation with oversight, fostering a competitive yet secure market.

One of the act’s most compelling merits is its potential to reinforce the global dominance of the U.S. dollar. Stablecoins, by design, are often backed by dollar-denominated assets such as U.S. Treasury securities, creating significant demand for these instruments. Standard Chartered estimates that the GENIUS Act could drive the total stablecoin supply from $230 billion today to $2 trillion by the end of 2028, absorbing substantial U.S. Treasury bill issuance during this period. This surge in demand not only strengthens the dollar’s role as the world’s reserve currency but also aligns with Palihapitiya’s vision of transitioning from petrodollar hegemony—where the dollar’s dominance is tied to oil trade—to stablecoin hegemony, where digital currencies amplify its reach in global transactions. By providing a clear legal pathway for stablecoin issuance, the GENIUS Act positions the United States to lead this shift, ensuring that dollar-backed stablecoins like USDC and USDT remain preeminent in the global market.

Moreover, the act enhances transparency and consumer trust, addressing concerns that have plagued the crypto industry. It imposes bank-like regulations on issuers, including capital, liquidity, and risk management standards, and categorizes them as financial institutions under the Bank Secrecy Act for anti-money laundering purposes. These measures ensure that stablecoin reserves are fully backed by compliant assets, mitigating risks of price manipulation or coin failures. For established issuers like Circle, compliance with these standards could boost institutional adoption, while non-compliant players, such as Tether, may need to restructure to compete in the U.S. market. This leveled playing field fosters a more resilient stablecoin ecosystem, benefiting consumers and investors alike.

The bipartisan support for the GENIUS Act, evidenced by its 18-6 passage through the Senate Banking Committee on March 13, 2025, reflects its broad appeal. Industry leaders, such as Circle’s Chief Strategy Officer Dante Disparte, have praised the bill as “historic and bipartisan progress” toward an “America-first framework” for stablecoin regulation. Even as critics, including Senator Elizabeth Warren, raise concerns about potential risks and corruption—particularly in light of recent stablecoin ventures tied to political figures—the act’s robust regulatory safeguards address many of these issues. For instance, its focus on compliance and oversight aims to curb illicit finance, while amendments could further strengthen protections against conflicts of interest.

Critics like Vance Spencer of Framework Ventures argue that overly restrictive regulations could push stablecoin innovation offshore, potentially weakening dollar hegemony. However, the GENIUS Act’s pragmatic approach, blending federal standards with state flexibility, mitigates this risk by encouraging domestic innovation while maintaining global competitiveness. The bill’s emphasis on international cooperation and a Treasury study on stablecoin reserves further ensures that the U.S. remains a leader in shaping global standards.

In conclusion, the GENIUS Act is a forward-thinking piece of legislation that aligns with the United States’ strategic interests in maintaining financial leadership. By establishing a clear, balanced framework for stablecoin regulation, it paves the way for the dollar to dominate the digital economy, as Palihapitiya envisions, through “stablecoin hegemony for the USD.” The act’s ability to foster innovation, enhance transparency, and bolster the dollar’s global role makes it a critical step toward a modernized financial system. As the Senate votes today, lawmakers have an opportunity to enact a policy that not only addresses immediate regulatory needs but also secures America’s economic dominance for decades to come. The GENIUS Act is, indeed, a stroke of genius, and its passage should be a priority.

The Benefits of Stablecoins

Stablecoins are digital currencies designed to maintain a stable value, typically pegged to a fiat currency like the U.S. dollar or other assets such as gold. Their unique characteristics offer significant benefits across financial systems, economies, and individual users. Below is a detailed explanation of the key advantages of stablecoins.

  1. Price Stability

Stablecoins mitigate the volatility commonly associated with cryptocurrencies like Bitcoin or Ethereum. By pegging their value to stable assets—such as the U.S. dollar, U.S. Treasury securities, or other low-risk instruments—stablecoins maintain consistent purchasing power. This stability makes them suitable for everyday transactions, savings, and financial planning, unlike volatile cryptocurrencies that can fluctuate dramatically in value. For example, a stablecoin like USDC ensures that 1 USDC remains equivalent to approximately 1 USD, providing predictability for users and businesses.

  1. Efficiency in Transactions

Stablecoins enable fast, low-cost transactions on blockchain networks, bypassing traditional financial intermediaries like banks or payment processors. This efficiency is particularly valuable for cross-border payments, which are often slow and expensive due to correspondent banking networks and currency conversion fees. Stablecoins can settle transactions in minutes, if not seconds, with minimal fees, making them an attractive alternative for remittances, international trade, and peer-to-peer transfers. For instance, a freelancer in Asia can receive payment in USDC from a U.S. client instantly, avoiding delays and high wire transfer costs.

  1. Global Accessibility and Financial Inclusion

Stablecoins operate on decentralized blockchain networks, accessible to anyone with an internet connection and a digital wallet. This democratizes access to financial services, particularly for unbanked or underbanked populations who lack access to traditional banking infrastructure. Stablecoins allow individuals in developing economies to store value in a dollar-pegged asset, hedge against local currency depreciation, and participate in global markets. For example, in countries with hyperinflation, such as Venezuela or Zimbabwe, stablecoins provide a stable store of value and a medium of exchange, empowering individuals to preserve their wealth.

  1. Strengthening the U.S. Dollar’s Global Dominance

Dollar-pegged stablecoins, such as USDC or USDT, reinforce the U.S. dollar’s role as the world’s reserve currency. These stablecoins are often backed by dollar-denominated assets, such as cash or U.S. Treasury securities, creating significant demand for these instruments. As stablecoin adoption grows, this demand can absorb U.S. debt issuance, lower borrowing costs, and extend the dollar’s influence in global trade and digital economies. The GENIUS Act, for instance, is projected to drive stablecoin supply to $2 trillion by 2028, amplifying the dollar’s reach through what has been termed “stablecoin hegemony.”

  1. Transparency and Programmability

Stablecoins leverage blockchain technology, which provides transparent, immutable transaction records. Many stablecoin issuers, such as Circle (USDC), publish regular attestations of their reserve assets, ensuring that each coin is fully backed by equivalent value. This transparency builds trust among users and regulators. Additionally, stablecoins are programmable, enabling integration into smart contracts and decentralized finance (DeFi) applications. This programmability supports innovative use cases, such as automated payments, decentralized lending, and tokenized asset trading, enhancing efficiency in financial ecosystems.

  1. Interoperability with Digital Economies

Stablecoins serve as a bridge between traditional finance and emerging digital economies, including DeFi, non-fungible tokens (NFTs), and the metaverse. They provide a stable medium of exchange for digital transactions, enabling seamless interactions across platforms. For example, a user can purchase an NFT or invest in a DeFi protocol using USDC without worrying about cryptocurrency price swings. This interoperability fosters innovation and drives adoption of blockchain-based technologies.

  1. Reduced Counterparty Risk

Unlike traditional financial systems, where transactions rely on intermediaries like banks or clearinghouses, stablecoin transactions occur directly on blockchains, reducing counterparty risk. Once a transaction is confirmed, it is final and irreversible, minimizing the risk of default or fraud by third parties. This feature is particularly valuable for high-value transactions or in regions with unstable financial institutions.

  1. Support for Monetary Policy and Economic Stability

By increasing demand for U.S. Treasury securities and other dollar-based assets, stablecoins can indirectly support U.S. monetary policy. As stablecoin issuers hold reserves in these assets, they contribute to market stability and liquidity. Furthermore, stablecoins can serve as a tool for central banks exploring digital currencies. For instance, research into central bank digital currencies (CBDCs) often draws on stablecoin models, highlighting their potential to modernize monetary systems.

Considerations and Challenges

While stablecoins offer numerous benefits, they are not without risks. Regulatory uncertainty, potential reserve mismanagement, and concerns about illicit use require robust oversight, as proposed by frameworks like the GENIUS Act. Ensuring that stablecoins are fully backed by high-quality assets and comply with anti-money laundering standards is critical to maintaining trust and stability.

Conclusion

Stablecoins represent a transformative innovation in the financial landscape, offering price stability, transactional efficiency, global accessibility, and support for the U.S. dollar’s global dominance. Their ability to foster financial inclusion, enhance transparency, and integrate with digital economies positions them as a cornerstone of modern finance. By addressing regulatory challenges, as the GENIUS Act aims to do, stablecoins can unlock their full potential, benefiting individuals, businesses, and economies worldwide while reinforcing the U.S. dollar’s enduring influence.

 

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Europe Is No Safe Haven: America Remains the Best Bet for Investors

In the latest round of elite economic groupthink, former Treasury Secretary Larry Summers and others are telling investors to pivot away from the dynamic, opportunity-rich U.S. economy and instead pour capital into the stagnating bureaucratic nightmare known as Europe. This, they claim, is the smart play. Well, let me offer a little free-market clarity: that’s economic malpractice.

The United States—despite the left’s best efforts to weigh it down with regulation and redistribution—remains the global engine of innovation, entrepreneurship, and energy abundance. With Republican leadership regaining ground in Washington, the tide is turning back toward growth, deregulation, and investor confidence. Europe, by contrast, is a masterclass in what not to do.

A Regulatory Wrecking Ball

Let’s get real: the European Union doesn’t regulate—it suffocates. From GDPR’s data straitjacket to ESG mandates written by central planners who’ve never run a business, the EU’s obsession with control and compliance has strangled productivity and scared off capital. Brussels doesn’t just overregulate—it micromanages entire industries into stagnation. If you think American red tape is bad, just wait until you’ve wrestled with a European directive drafted by three committees and translated into 27 languages.

Meanwhile, in the U.S., there’s real momentum building for a return to supply-side sanity—lower taxes, smarter regulation, and policies that reward success instead of punishing it. Under pro-growth Republican leadership, American business has room to breathe again. The smart money isn’t fleeing—it’s doubling down.

Europe’s Innovation Deficit

Ask yourself: when was the last time Europe produced a global tech leader? Go ahead, we’ll wait. The answer is decades ago. SAP in the 1970s, maybe? Since then, innovation on the continent has been throttled by fragmented markets, timid investors, and a risk-averse culture allergic to disruption.

In stark contrast, the United States is inventing the future every day—AI, quantum computing, biotech, aerospace, energy storage—you name it. Our venture capital markets are the envy of the world. American entrepreneurs are building empires in their garages, while European counterparts are still filling out grant applications and waiting for regulatory approval.

Energy Policy: Greta’s Folly

Let’s talk energy—the lifeblood of any economy. Europe’s energy crisis is a self-inflicted wound, brought on by ideological extremism. Leaders across the continent shut down clean nuclear plants and made themselves dependent on unreliable wind and solar—and worse, Russian gas. The result? Soaring energy prices, manufacturing shutdowns, and widespread instability.

You can thank Greta Thunberg and the green utopians for that disaster. In fact, it often feels like Greta is running Europe’s energy policy—armed with a bullhorn, a backpack, and a list of things to ban. At this point, they might as well make her their official Energy Czar. Why not? She’s already done more to paralyze their grid than any energy minister could dream of.

Meanwhile, the U.S. is riding a shale renaissance and exporting LNG to allies abroad. American energy is affordable, abundant, and reliable—three words that Europe hasn’t been able to say in years. It’s not just energy security—it’s a competitive advantage.

Summers Is Selling Snake Oil

So why is Larry Summers pushing Europe now? Perhaps it’s nostalgia for transatlantic wine-and-cheese summits. Or maybe he’s angling for applause from Davos elites. Either way, it’s detached from economic reality. Summers ignores the pro-growth shift happening in Washington, the structural rot in Brussels, and the stark performance gap between U.S. and European markets. Summers and his ilk will do anything to make Trump look bad—even if it means cheerleading for a sinking ship.

Just listen to what Summers recently said on the All-In Podcast: “Europe has demonstrated a much more sophisticated and unified response to global economic challenges.” Unbelievable. The same Europe that can’t keep the lights on, can’t fund innovation, and can’t even agree on defense or migration policy is now being touted as the gold standard? That’s not analysis—that’s delusion. Or worse, it’s gaslighting investors into abandoning the world’s strongest economy for the illusion of bureaucratic order.

And while Summers is busy praising the EU’s supposedly ‘sophisticated’ economic model, the UK—Europe’s former financial engine—is shutting down its steel industry. Yes, you read that right. The birthplace of the Industrial Revolution is turning off the furnaces for good. So much for economic leadership.

Let’s be clear: betting on Europe is not just misguided—it’s anti-growth. It’s turning your back on American innovation, energy independence, and market-driven prosperity. That’s not capitalism. That’s surrender.

Stick with the winners. Stick with America.