Billionaire entrepreneur and senior advisor to President Donald Trump, Elon Musk, has claimed that several U.S. government departments operate what he calls “Magic Money Computers”—systems allegedly capable of creating money out of thin air.
Speaking on the “Verdict” podcast with Senator Ted Cruz (R-TX), Musk stated that his team at the Department of Government Efficiency (DOGE) uncovered 14 such systems across various federal agencies. These include the Department of the Treasury, Department of Health and Human Services (HHS), Department of State, and Department of Defense (DOD).
Elon Musk: Magic Money Computers Sending Trillions Worldwide
Musk explained that these computers possess blank-check authority, sending out massive payments without any apparent source of funding. “I call a ‘magic money computer’ any computer which can just make money out of thin air,” he stated. According to Musk, the most significant instances were found at the Treasury Department, which he claims has been responsible for trillions in payments.
Crypto Advocates Say Bitcoin Fixes This
Following Musk’s statements, Bitcoin advocate Jameson Lopp, chief security officer at crypto custody firm Casa, commented that “Bitcoin fixes this.”
The crypto community have long viewed Bitcoin as a saviour, emphasizing that its 21 million coin supply cap prevents this. The concerns over government overspending and inflation have fueled growing interest in decentralized finance (DeFi) and cryptocurrencies. Many governments have central banks (such as the European Central Bank, Bank of England, Bank of Japan, and People’s Bank of China) that control money supply and can, in effect, create money through mechanisms like quantitative easing (QE) and deficit financing. These institutions expand the monetary base by purchasing government bonds, issuing loans, or adjusting interest rates. While these processes don’t involve literal “magic money computers,” they function in a way that aligns with Musk’s broader claim about unchecked money creation.
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DOGE’s Budget Cuts Under Fire
Musk’s DOGE department has been aggressively pursuing spending cuts, claiming to have saved $105 billion by eliminating inefficient programs. However, DOGE’s accounting has been criticized for errors and lack of transparency.
Additionally, the department has come under scrutiny for its chaotic layoffs, including firing and later rehiring key personnel. Some terminations have affected workers responsible for maintaining U.S. nuclear weapons sites, sparking national security concerns.
One of the most controversial moves has been in the Education Department, which Trump has vowed to eliminate. The department, which oversees $1.6 trillion in student loans, enforces civil rights laws, and provides funding for underserved school districts, has seen significant staffing reductions under DOGE’s “final mission.”
