Musk exposes $13.3M 'magic money' claim

Elon Musk, head of the Department of Government Efficiency (DOGE), has sparked controversy by claiming to have discovered 14 "magic money computers" within the U.S. federal government.

These systems, according to Musk, can create and distribute money without proper oversight, operating in departments such as the Treasury, Defense, and Health and Human Services.

"You may think that the government computers all talk to each other, they’re synchronised, they add up what funds are going where, and it’s coherent and that the numbers you’re presented as a senator are the real numbers," Musk stated, making these claims on Senator Ted Cruz's podcast.

However, he noted that this isn't entirely accurate, with discrepancies of up to 10% in some cases.

Musk described these computers as "magic money computers" because they can issue payments seemingly out of thin air.

He also suggested that these systems might be "the biggest scam of all time" due to their lack of transparency and coordination.

In response to Musk's claims, Bitcoin (CRYPTO:BTC) advocates like Jameson Lopp argue that Bitcoin could mitigate such issues by offering a capped supply that protects against inflation and currency devaluation.

"Bitcoin fixes this," Lopp succinctly stated.

Musk's revelations come as part of DOGE's broader efforts to cut government spending.

The department has canceled numerous contracts deemed wasteful, totaling up to $1.7 billion.

While Musk's comments have been met with scepticism by some, who see them as a misunderstanding of Modern Monetary Theory (MMT), they highlight ongoing debates about government spending and financial transparency,

Musk's work with DOGE has also faced backlash, with Tesla facilities being vandalised in protest against the department's cost-cutting measures.