Elon Musk asserted he found at least fourteen “magic money computers” in the U.S. federal government.
Musk claims the systems allow government agencies to generate funds seemingly without source or limit.
Jameson Lopp, Chief Security Officer at Bitcoin custody firm Casa, simply commented, “Bitcoin fixes this,” responding to Musk’s assertions.
Musk detailed his claims in a March 17 podcast episode of “Verdict with Ted Cruz,” hosted by Senator Ted Cruz. He stated that these “magic money computers” exist in various federal departments, including the Treasury, Defense, and Health and Human Services.
Musk argues that these computers essentially initiate payments, creating money out of nothing.
“You might assume government computer systems operate in a coordinated manner, maintaining synchronized and accurate records of fund allocation and movement, ensuring the financial figures senators receive are precise representations of reality,” Musk commented on the podcast.
However, Musk argued this is not entirely accurate. “While not entirely inaccurate, these figures may deviate from actual values by an estimated 5% to 10% in certain instances.
I describe this capability, where computers appear to create money without apparent origin, as ‘magic money.’”
Jameson Lopp, Chief Security Officer at Bitcoin custody firm Casa, responded to Musk’s statements in the online comments section associated with the podcast by suggesting, “Bitcoin fixes this.”
DOGE Project Uncovers Waste and Musk Face’s Protest
Bitcoin proponents have consistently touted Bitcoin as a tool to guard against traditional currency depreciation, citing its fixed 21 million coin supply, contrasting it with fiat currencies whose supply governments can expand through actions like quantitative easing.
Musk further indicated his efforts to optimize operations at DOGE (potentially referring to governmental entities he audits or engages with).
These efforts revealed observations that various U.S. government departments possess more media subscriptions, software licenses, and corporate credit cards than they have employees. Musk noted that, in some instances, the surplus is up to double the employee count.
Musk estimates roughly 80% of the observed financial discrepancies stem from waste and inefficiency, rather than deliberate fraud.
He cited instances where companies received government payments in error—contracts expired, but payments continued, and subsequently, the government did not follow up to reclaim these misallocated funds.
“We have observed numerous outgoing payments from the Treasury that lacked payment justification codes or clear descriptions, necessitating investigative efforts to determine their purpose,” Musk explained.
“Subsequently, we sometimes identify cases where, for example, someone intended a contract for termination, but administrative oversight failed, resulting in continued, unwarranted payments to a contractor.
The critical question is whether to classify such instances as simple waste or outright fraud.”
Musk’s involvement in cost-cutting within governmental or quasi-governmental projects has reportedly had repercussions for his other commercial ventures.
Tesla facilities in the United States have become targets of vandalism, linked to a “Take down Tesla” protest movement.
These actions appear related to objections against Musk’s cost-reduction strategies at DOGE and potentially perceived impacts of such measures.
Also Read: Elon Musk is looking at blockchain solutions for the spending of the United States government
