Elon Musk’s “Magic Money Computers”

Elon Musk’s cost-cutting initiative within the U.S. government has identified what he calls “magic money computers” that can print unlimited cash, according to comments made in a podcast on Monday.

“I call a ‘magic money computer’ any computer which can just make money out of thin air,” Musk stated during his discussion with Senator Ted Cruz (R-TX) on the “Verdict” podcast. He explained that these computers, found in several federal agencies including the U.S. Treasury, Health and Human Services, State, and Defense departments, have blank-check authority to send out vast sums of money effortlessly.

Musk’s claims suggest that his Department of Government Efficiency (DOGE) has identified 14 such computers, capable of transferring trillions of dollars to sustain government operations.

His comments have sparked concern among Bitcoin enthusiasts who see it as a safeguard against inflation. The term “magic internet money” emerged in 2013 among the Bitcoin community, coinciding with fears about excessive government spending.

Musk’s views mirror those of financial leaders like BlackRock’s CEO Larry Fink, who noted Bitcoin’s appeal amid fears of currency devaluation stemming from government actions.

While Musk’s drive for budget cuts raises recession anxieties due to potential federal job losses, the credibility of DOGE’s savings claims has been challenged, with reports of errors in their data.

Musk acknowledged that the magic computers might not be entirely inaccurate in their estimates, suggesting a possible discrepancy of 10% in reported spending amounts.

Edited by James Rubin