David Edwards
Elon Musk, the U.S. government’s self-proclaimed cost-cutting czar, claims to have identified at least 14 government-operated systems capable of issuing payments seemingly “out of thin air.”
Speaking on the Verdict with Ted Cruz podcast on March 17, Musk revealed that these so-called “magic money computers” exist within multiple federal departments, including the Treasury, Defense, and Health and Human Services. He argued that these systems allow the government to disburse funds without clear oversight.
“You may think government computers talk to each other, synchronize data, and ensure financial coherence. But the numbers presented to senators aren’t always real,” Musk said.
Although government statistics are not totally off, Musk thinks there may be a 5% to 10% difference.
Mismanagement and Untracked Government Payments
According to Musk, inefficiencies are not limited to the payment systems. He pointed out that some U.S. agencies had up to twice as many credit cards, software licenses, and media subscriptions as real personnel.
Musk frequently blames these problems on inept bureaucracy rather than intentional fraud. He gave examples of government contracts that kept paying out long after they were supposed to, with no one making an effort to get the money back.
“We saw Treasury payments with no codes or explanations. When we investigated, we found contracts that should’ve been terminated, but weren’t—so companies kept getting money,” Musk explained.
Is Bitcoin the Answer?
“Bitcoin could mitigate such financial discrepancies,” said Jameson Lopp, chief security officer at Bitcoin custody startup Casa. Proponents contend that the 21 million coin limit on Bitcoin avoids the kind of inflationary money creation that befalls fiat currencies.
Musk has drawn criticism for his cost-cutting measures, which are sometimes linked to projects involving Dogecoin. In criticism of Musk’s strategy for government spending reform, a movement called “Take Down Tesla” has resulted in vandalism at Tesla locations throughout the United States
The argument about accountability, transparency, and the function of decentralized currencies is probably going to get more heated as Musk continues his in-depth investigation of government inefficiencies.
