TLDR
- Elon Musk claims to have found 14 “magic money computers” in federal departments that can “send money out of thin air”
- These computers exist in Treasury, Defense, Health and Human Services, and State departments
- Musk heads the Department of Government Efficiency (DOGE) focused on cutting government spending
- Bitcoin advocate Jameson Lopp responded that “Bitcoin fixes this” issue
- DOGE has already canceled 239 “wasteful” contracts worth up to $1.7 billion
Elon Musk, head of the Department of Government Efficiency (DOGE), has claimed to have discovered 14 “magic money computers” across various federal departments. These computers allegedly have the ability to “make money out of thin air” according to statements Musk made during an appearance on Senator Ted Cruz’s podcast “Verdict” on March 17.
The tech billionaire, who was appointed by President Donald Trump to lead government cost-cutting efforts, explained that these computers can issue payments without proper oversight. They exist in several federal departments including the Treasury, Defense, Health and Human Services, and State.
“You may think that the government computers all talk to each other, they’re synchronized, they add up what funds are going where, and it’s coherent,” Musk told Cruz during the podcast. However, he claimed this isn’t the case in reality.
An absolute bombshell from @elonmusk on the latest episode of Verdict.
He reveals there are 14 magic money computers in the federal government that send money out of nothing.
Don’t miss the latest episode of Verdict wherever you get your podcasts. Subscribe now!… pic.twitter.com/1tnJmJtiw9
— Ted Cruz (@tedcruz) March 17, 2025
Musk defined a “magic money computer” as “any computer which can just make money out of thin air.” He added that while these systems aren’t “totally wrong” in reporting government expenditures, they can be off by “5% or 10% in some cases.”
The DOGE team has been conducting a thorough audit of federal government spending. This audit aims to identify and eliminate wasteful expenditure across departments.
In response to Musk’s claims, Bitcoin advocate Jameson Lopp, chief security officer at Bitcoin custody company Casa, commented that “Bitcoin fixes this.” Cryptocurrency supporters have long argued that Bitcoin’s capped supply of 21 million coins serves as a hedge against currency devaluation.
Bitcoin fixes this.https://t.co/1gUJmRHkgh
— Jameson Lopp (@lopp) March 17, 2025
DOGE’s Audit Uncovers More Than Expected
Musk’s investigation has also revealed other concerning findings. He noted that some government departments have more media subscriptions, software subscriptions, and credit cards than employees.
The DOGE head believes that about 80% of these cases stem from waste and incompetence rather than malicious intent. He cited examples where companies continued to receive government payments even after their contracts should have been terminated.
“We saw a lot of payments going out of Treasury that had no payment code and no explanation for the payment,” Musk said. He questioned whether these situations represent waste or fraud.
DOGE announced last week that it had already canceled 239 “wasteful” contracts within government agencies. These contracts were estimated to be worth up to $1.7 billion according to reports.
Among the canceled programs was $699,000 for studying “cannabis use” among “sexual minority gender diverse individuals” and $740,000 for examining “social networks” among specific demographic groups in New Jersey.
Senator Mike Lee of Utah responded to Musk’s revelations with humor on social media. “Can a person buy a magic money computer on eBay? Asking for a friend,” Lee wrote.
Musk described the computers as “maybe the biggest scam of all time” in a post shared on X, formerly known as Twitter. His statement has sparked discussions about government financial accountability.
The tech entrepreneur’s work with DOGE has not come without controversy. According to reports, some of Musk’s other business ventures have suffered due to his government role.
Tesla facilities around the United States have reportedly been vandalized as part of a broader “Take down Tesla” movement. These actions apparently protest DOGE’s cost-cutting measures.
Musk continues to lead the audit efforts despite these challenges. The DOGE initiative represents one of the most sweeping attempts to reduce federal spending in recent years.
The discovery of these “magic money computers” raises questions about financial controls within the federal government. It also highlights potential areas for reform in how government funds are tracked and disbursed.
