Elon Musk Exposes the System Keeping Government Fraud Alive

Now, it all makes sense.

Elon Musk just pulled back the curtain on what’s really fueling government waste and fraud. Speaking with Senator Ted Cruz, he revealed there are at least 14 “magic money computers” that can “send money out of nothing,” meaning these government systems are issuing trillions in payments with little oversight or real-time accountability.

Musk explained that these computers don’t operate in a way where they “talk to each other.” Instead, Musk explained they function in a way that allows money to move through government agencies unchecked, sometimes in ways that don’t align with official records.

The numbers lawmakers see aren’t always accurate, with government books potentially off by 5% to 10%. That could mean up to hundreds of billions in taxpayer dollars are misallocated or disappearing, while the actual financial activity remains hidden deep inside these systems.

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“So you may think that the government computers all talk to each other. They synchronize, they add up what funds are going somewhere, and it’s coherent that the numbers, for example, that you’re presented as a senator are actually the real numbers. They’re not,” Musk explained.

“They’re not totally wrong,” he continued. “They’re probably off by 5% or 10% in some cases. So I call it Magic Money Computer. Any computer which can just make money out of thin air. That’s Magic Money.”

“So how does that work?” Ted Cruz asked.

“It just issues payments,” Musk answered. “I think we found now 14 magic money computers. They just send money out of nothing.”

This raises a critical question: If the government’s books are off by 5% to 10% in some cases, leaving up to hundreds of billions of dollars unaccounted for, where is all that money actually going?

Image: Shutterstock / Deacons docs

On a related note, Elon Musk has previously called government-funded NGOs one of the biggest scams in history, saying they take hundreds of billions in taxpayer dollars with little accountability, leading to massive waste and misallocation.

He estimates that up to $700 billion per year is funneled through these so-called nonprofits, many of which he claims are nothing more than money laundering operations disguised as charity.

Instead of focusing on bureaucratic structures, Musk believes the key to understanding waste, fraud, and financial manipulation is to go straight to the source: the computers handling the payments.

Musk previously said something to the effect, “I don’t want a job in Washington. All I want is the login for every computer.”

Musk explained that policy decisions eventually filter down to computers for implementation.

The problem? These systems are buried under layers of bureaucracy, making it nearly impossible for lawmakers—or even agency heads—to track where the money is actually going in real-time.

He explained, “The government is run by computers. So you’ve got essentially several hundred computers that effectively run the government. So when somebody, like, even when the President issues an executive order, that’s got to go through a whole bunch of people until ultimately it is implemented at a computer somewhere,” Musk explained.

“And if you want to know what the situation is with the accounting and you’re trying to reconcile accounting and get rid of waste and fraud, you must be able to analyze the computer databases. Otherwise, you can’t figure it out because all you’re doing is asking a human who will then ask another human, ask another human, and finally usually ask some contractor who will ask another contractor to do a query on the computer,” Musk lamented.

“That’s how it actually works,” he stressed. “So it’s many layers deep. So the only way to reconcile the databases and get rid of waste and fraud is to actually look at the computers and see what’s going on. That’s what I sort of cryptically referred to, reprogramming the matrix. You have to understand what’s going on in the computers. You have to reconcile the computer databases in order to identify the waste of fraud.”

Watch the full conversation below:

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