Summary
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Elon Musk Alleges Discovery of “Magic Money Computers”: Elon Musk claimed to have identified at least 14 computer systems within the US federal government that can create and disburse money without apparent funding sources, located across departments like Treasury and Defense.
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“Magic Money” Definition: Funds Created “Out of Thin Air”: Musk defines these systems as “magic money computers” due to their alleged capability to initiate payments and generate funds seemingly from nothing, suggesting potential discrepancies in government financial record-keeping.
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Bitcoin Advocated as a Solution: In response to Musk’s claims, Jameson Lopp of Casa suggested “Bitcoin fixes this,” echoing the cryptocurrency community’s argument that Bitcoin’s limited supply contrasts with fiat currencies and can act as a hedge against currency manipulation and inflation concerns implied by Musk’s allegations.
Elon Musk, known for his role in cost-cutting initiatives, asserted that he has identified at least fourteen “magic money computers” within the U.S. federal government. These systems, according to Musk, permit government agencies to generate funds seemingly without source or limit.
In response to Musk’s assertions, Jameson Lopp, Chief Security Officer at Bitcoin custody firm Casa, commented simply, “Bitcoin fixes this.”
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” are distributed across various federal departments, including the Department of the Treasury, the Department of Defense, and the Department of Health and Human Services.
Musk asserts that these computers have the ability to initiate payments, thereby creating money from nothing.
“One might assume that government computer systems operate in a coordinated manner, maintaining synchronized and accurate records of fund allocation and movement, thus ensuring the financial figures presented to bodies like the Senate 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 margin of 5% to 10% in certain instances.
This capability, where computers appear to create money without apparent origin, is what I describe as ‘magic money.’”
Bitcoin Proposed as Solution
Jameson Lopp, Chief Security Officer at the Bitcoin custody firm Casa, responded to Musk’s statements by suggesting, “Bitcoin fixes this,” in the online comments section associated with the podcast.
Bitcoin proponents have consistently advocated for Bitcoin as a tool to guard against the depreciation of traditional currencies, citing its fixed supply of 21 million coins, contrasting it with fiat currencies where supply can be expanded through actions like quantitative easing.
Musk further indicated his efforts to optimize operations at DOGE (potentially referring to governmental entities he is auditing or engaging with), revealing observations that various U.S. government departments possess more media subscriptions, software licenses, and corporate credit cards than actual employees.
In some instances, Musk noted, the surplus is as high as double the employee count.
Musk estimates that roughly 80% of the observed financial discrepancies are attributable to waste and inefficiency, rather than deliberate fraudulent activity.
He cited instances of companies receiving government payments in error, where contracts had expired but the payments continued, and subsequently, there was a lack of government follow-up to reclaim these misallocated funds.
“We have observed numerous outgoing payments from the Treasury lacking payment justification codes or clear descriptions, necessitating investigative efforts to determine the purpose of these disbursements,” Musk explained.
“Subsequently, we sometimes identify cases where, for example, a contract was intended for termination, but administrative oversight failed, resulting in continued, unwarranted payments to a contractor.
The critical question becomes 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 been targets of vandalism, linked to a “Take down Tesla” protest movement.
These actions appear to be related to objections against Musk’s cost-reduction strategies at DOGE and potentially perceived impacts of such measures.
Also Read: Elon Musk Prepared to Put Treasury on Blockchain Despite Obstacles
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