The US government’s efforts to trim expenses have led Elon Musk to assert that he has identified at least 14 so-called “magic money computers” within federal agencies that can generate funds seemingly out of thin air.
Musk asserts that these computers, located in various federal departments such as Treasury, Defense, and Health and Human Services, can effectively issue payments without any real backing.
“You might assume that government computers are effectively communicating with each other, that they’re synchronized, keeping track of where funds are allocated, and providing coherent data to senators,” Musk remarked during a recent podcast episode.
An absolute bombshell from @elonmusk on the latest episode of Verdict.
He reveals there are 14 magic money computers in the federal government that send money out of nothing.
Don’t miss the latest episode of Verdict wherever you get your podcasts. Subscribe now!… pic.twitter.com/1tnJmJtiw9— Ted Cruz (@tedcruz) March 17, 2025
Nevertheless, Musk argues that this isn’t quite accurate.
“They’re not entirely wrong, but in some cases, they could be off by 5% or 10%. I refer to it as ‘magic money computer’—any system that can create money out of thin air. That’s what I call magic money,” he explained.
Jameson Lopp, the chief security officer at a cryptocurrency custody firm, commented that “Bitcoin fixes this,” highlighting the cryptocurrency’s reputation as a safeguard against currency devaluation, with its supply limited to 21 million coins compared to fiat currency, which can be printed at will.
Source: Jameson Lopp
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Musk has also noted that his recent inquiries into DOGE revealed that certain government departments possess more media subscriptions, software licenses, and credit cards than employees—sometimes up to double the amount.
Nevertheless, he believes that around 80% of these instances represent waste and inefficiency rather than intentional fraud. For example, it appears that some companies have been mistakenly sent money, and there has been a lack of follow-up from the government to reclaim those funds.
“We discovered a number of payments from the Treasury that lacked proper payment codes or explanations, and we’re left trying to determine the nature of those payments,” Musk stated.
“Then we find that a contract was scheduled to be terminated, but someone overlooked that detail, resulting in the company continuing to receive funds. So, is that waste or fraud?”
Musk has faced backlash in his other ventures due to his work with DOGE, with some Tesla facilities experiencing vandalism as part of a larger anti-Tesla movement opposing the budget cuts associated with DOGE.
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