Musk Alleges Government Has Money-Printing Computer’ Creating Cash Out of Thin Air

Elon Musk, the US government's cost-cutting chief, claims to have uncovered at least 14 "magic money computers" within federal agencies—systems he alleges can generate funds out of thin air.

Speaking on the Verdict podcast with Senator Ted Cruz (R-TX), Musk made this assertion amidst D.O.G.E’s sweeping audits of federal spending, which have already led to staff reductions across multiple agencies.

During the discussion, Cruz specifically raised the issue of these so-called money-generating systems:

"One of the things you told me about is what you called magic money computers."

Musk responded:

“You may think that government computers all talk to each other, they all synchronize, they add up what funds are going somewhere and its coherent and that the numbers you're presented as a Senator are actually the real numbers...They're not.”

He continued:

“They’re not totally wrong, but they’re probably off by 5% or 10% in some cases. So I call it 'magic money computer’ — any computer that can make money out of thin air. That’s magic money.”

Musk further claimed that his oversight has exposed widespread waste and fraud in government software licensing.

He concluded:

“If you say, What’s the waste-to-fraud ratio? In my opinion, it’s like 80% waste and 20% fraud.”

However, critics argue that Musk frequently exaggerates or misinterprets information.

Despite the scepticism, Musk’s "magic money computers" remark highlights concerns over fiat currency’s ease of creation and distribution—an issue D.O.G.E aims to address through efficiency-driven reforms.

Bitcoin custody firm Casa’s Chief Security Officer, Jameson Lopp, weighed in on the debate, commenting that “Bitcoin fixes this.”

Bitcoin advocates have long promoted the cryptocurrency as a hedge against currency devaluation, emphasizing its fixed supply of 21 million coins compared to fiat’s limitless expansion.

Magic Money Computers Located at Various Places

Cruz pressed further, questioning the location of these so-called "magic money computers."

He specifically pointed to the US Treasury Department, alleging that these systems are responsible for issuing trillions in payments.

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Musk noted:

"They're mostly at the Treasury, some are at HHS, one or two at State, there's some at DOD, I think we've found 14 magic money computers.'"

Musk later reposted a clip from the interview, doubling down on his claims and calling the alleged operation “maybe the biggest scam of all time.”

Critics Believe Musk is Referring to the Principles of Modern Monetary Theory

Critics and social media users suggest that Musk’s remarks align with the principles of Modern Monetary Theory (MMT)—the idea that governments, by printing money to cover interest payments, need not worry about accumulating debt.

Current Affairs editor Nathan J. Robinson wrote:

"Ted Cruz and Elon Musk discover the bombshell fact that MMT is true."

Joe Weisenthai, co-anchor of What’d You Miss? on Bloomberg Television said:

"Complete MMT vindication. Money is created by computer entry."

D.O.G.E Efforts Intensifiy, Makes More Discoveries

Musk claims his latest D.O.G.E audit has revealed that some US government departments hold more media subscriptions, software licenses, and credit cards than they have employees—sometimes twice as many.

While he attributes 80% of these cases to waste and mismanagement rather than deliberate fraud, he notes instances where companies receive government payments in error, with no follow-up to reclaim the funds.

Musk elaborated:

“We saw a lot of payments going out of Treasury that had no payment code and no explanation for the payment, and then we’re trying to figure out what that payment is. Then we see that, okay, that contract was supposed to be shut off, but someone forgot to shut off that contract, and so the company kept getting money. Now, is that waste or fraud?”

Is Musk uncovering a systemic flaw in federal spending, or are his assertions exaggerated?