'Magic Money Computers': Elon Musk's Wild Claim or Real Concern?

Speaker McCarthy discusses the importance of making social media platforms fair for all parties with Twitter CEO Elon Musk. Photo courtesy of Office of the Speaker of the House of Representatives. Public domain.

"Magic money computers." That's the term tech billionaire Elon Musk dropped during a recent appearance on Senator Ted Cruz's "Verdict" podcast, as reported by Bitcoin.com News. Musk claimed he and his Department of Government Efficiency (DOGE) discovered 14 government computers capable of creating money "out of thin air." That's a big claim that raised eyebrows and sparked headlines immediately. But what exactly is Musk talking about? Is this just a catchy way to describe government money printing, or is there more behind those mysterious machines?

'They Just Send Money Out of Nothing'

So, what makes these computers "magic"?

Musk says the 14 computers DOGE uncovered — most of them reportedly located in the Treasury Department, with others allegedly in agencies like Defense, Health and Human Services, and the State Department — can issue payments without a clear accounting trail or even proper synchronization with other federal systems, according to Bitcoin.com News.

Musk said they just "send money out of nothing," according to Fortune. He added that these systems have discrepancies of up to 10% yet still push out trillions of dollars to undisclosed recipients, as Bitcoin.com News reported. According to Musk, this isn't just a technical glitch — it's a systemic issue pointing to a government bookkeeping breakdown, according to MSN.

What Are 'Magic Money Computers' Really?

While the term "magic money computer" may sound fantastical, experts suggest he's pointing toward a deeper truth about how fiat money and modern government finance work.

Since the U.S. abandoned the gold standard in 1971, dollars are no longer backed by physical commodities. The Federal Reserve — and, to some extent, the Treasury — can create money electronically with minimal cost.

Former Fed chair Ben Bernanke, as quoted by MarketWatch, once described it as "The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost," as reported by Market Watch.

In that light, Musk's "magic money computers" aren't so much magical as metaphorical — symbolic of a monetary system most Americans rarely think about, even though it affects their daily lives through inflation, taxes, and government debt.

Wrangling with Runaway Money

In a statement recorded by Fortune, Musk said of the government: "If it was a public company, it would be delisted immediately. It would fail its audit, and the officers of the company would be imprisoned."

The heart of Musk's criticism of the "magic money computers" is twofold — not just that money can be created, but that it's being created without adequate oversight or accountability. On the "Verdict" podcast, he and Cruz discussed what they see as a failure of double-entry accounting in government departments, as reported by MSN.

What will DOGE do with these money-printing machines now that they have found them? At the time of writing, it remains unclear. DOGE is tasked with identifying waste, fraud, and abuse in the federal government, but that doesn't mean that the "magic money computers" will get the axe—at least not immediately.

Trump Praises, Economists Demur

President Donald Trump has not directly weighed in on the "magic money computers" discovery or Musk's criticism of them. However, in an interview with Fox Business, Trump praised Musk as a "real patriot" for his work at DOGE and his efforts to expose waste and inefficiency. "This is something that's really not good for him, and yet he's doing it," Trump said, referring to the negative press and the flagging Tesla sales connected to Musk's government work. "But he's opened a lot of eyes," according to Fox Business.

X Æ A-Xii, Elon Musk and Donald Trump in the Oval Office, February 11, 2025. Photo courtesy of The White House. Public domain.

Financial experts aren't quite so confident. David Andolfatto, former senior vice president at the Federal Reserve Bank of St. Louis and current chair of the University of Miami's economics department, criticized Musk's analysis stating, "What Musk was probably trying to communicate was that the resources devoted to these agencies, they're not being properly audited, or there's not proper oversight. That may be true or false, I don't know, but the fact that the government can print money out of thin air is neither here nor there," as reported by MSN.

You don't have to agree with Musk's framing to recognize the core point he's making — the government's financial systems are complex, powerful, and not always transparent. Whether you see that as a necessary feature of modern economics or a red flag depends on your perspective.

References: Elon Musk says he and DOGE found 14 'magic money computers' that create money out of thin air | Elon Musk Reveals Government Has 'Magic Money Computers' | Elon Musk claims DOGE has found 'magic money computers' | Elon Musk discovers 'magic money computers,' or how the U.S. financial system actually works | Musk claims DOGE has found 'Magic Money Computers' | Trump praises 'real patriot' Elon Musk for 'opening a lot of eyes' with DOGE | Elon Musk says he and DOGE found 14 'magic money computers' that create money out of thin air