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Elon Musk Exposes the System Keeping Government Fraud Alive

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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.

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 accuratewith 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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2025 Federal Election

MEI-Ipsos poll: 56 per cent of Canadians support increasing access to non-governmental healthcare providers

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  • Most believe private providers can deliver services faster than government-run hospitals

  • 77 per cent of Canadians say their provincial healthcare system is too bureaucratic

Canadians are increasingly in favour of breaking the government monopoly over health care by opening the door to independent providers and cross-border treatments, an MEI-Ipsos poll has revealed.

“Canadians from coast to coast are signalling they want to see more involvement from independent health providers in our health system,” explains Emmanuelle B. Faubert, economist at the MEI. “They understand that universal access doesn’t mean government-run, and that consistent failures to deliver timely care in government hospitals are a feature of the current system.”

Support for independent health care is on the rise, with 56 per cent of respondents in favour of allowing patients to access services provided by independent health entrepreneurs. Only 25 per cent oppose this.

In Quebec, support is especially strong, with 68 per cent endorsing this change.

Favourable views of accessing care through a mixed system are widespread, with three quarters of respondents stating that private entrepreneurs can deliver healthcare services faster than hospitals managed by the government. This is up four percentage points from last year.

Countries like Sweden and France combine universal coverage with independent providers and deliver faster, more accessible care. When informed about how these health systems run, nearly two in three Canadians favour adopting such models.

The poll also finds that 73 per cent of Canadians support allowing patients to receive treatment abroad with provincial coverage, which could help reduce long wait times at home.

Common in the European Union, this “cross-border directive” enabled 450,000 patients to access elective surgeries in 2022, with costs reimbursed as if they had been treated in their home country.

There’s a growing consensus that provincial healthcare systems are overly bureaucratic, with the strongest agreement in Alberta, B.C., and Quebec. The proportion of Canadians holding this view has risen by 16 percentage points since 2020.

Nor do Canadians see more spending as being a solution: over half say the current pace of healthcare spending in their province is unsustainable.

“Governments shouldn’t keep doubling down on what isn’t working. Instead, they should look at what works abroad,” says Ms. Faubert. “Canadians have made it clear they want to shift gears; now it’s up to policymakers to show they’re listening.”

A sample of 1,164 Canadians aged 18 and older was polled between March 24th and March 28th, 2025. The margin of error is ±3.3 percentage points, 19 times out of 20.

The results of the MEI-Ipsos poll are available here.

* * *

The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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Education

Schools should focus on falling math and reading skills—not environmental activism

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From the Fraser Institute

By Michael Zwaagstra

In 2019 Toronto District School Board (TDSB) trustees passed a “climate emergency” resolution and promised to develop a climate action plan. Not only does the TDSB now have an entire department in their central office focused on this goal, but it also publishes an annual climate action report.

Imagine you were to ask a random group of Canadian parents to describe the primary mission of schools. Most parents would say something along the lines of ensuring that all students learn basic academic skills such as reading, writing and mathematics.

Fewer parents are likely to say that schools should focus on reducing their environmental footprints, push students to engage in environmental activism, or lobby for Canada to meet the 2016 Paris Agreement’s emission-reduction targets.

And yet, plenty of school boards across Canada are doing exactly that. For example, the Seven Oaks School Division in Winnipeg is currently conducting a comprehensive audit of its environmental footprint and intends to develop a climate action plan to reduce its footprint. Not only does Seven Oaks have a senior administrator assigned to this responsibility, but each of its 28 schools has a designated climate action leader.

Other school boards have gone even further. In 2019 Toronto District School Board (TDSB) trustees passed a “climate emergency” resolution and promised to develop a climate action plan. Not only does the TDSB now have an entire department in their central office focused on this goal, but it also publishes an annual climate action report. The most recent report is 58 pages long and covers everything from promoting electric school buses to encouraging schools to gain EcoSchools certification.

Not to be outdone, the Vancouver School District (VSD) recently published its Environmental Sustainability Plan, which highlights the many green initiatives in its schools. This plan states that the VSD should be the “greenest, most sustainable school district in North America.”

Some trustees want to go even further. Earlier this year, the British Columbia School Trustees Association released its Climate Action Working Group report that calls on all B.C. school districts to “prioritize climate change mitigation and adopt sustainable, impactful strategies.” It also says that taking climate action must be a “core part” of school board governance in every one of these districts.

Apparently, many trustees and school board administrators think that engaging in climate action is more important than providing students with a solid academic education. This is an unfortunate example of misplaced priorities.

There’s an old saying that when everything is a priority, nothing is a priority. Organizations have finite resources and can only do a limited number of things. When schools focus on carbon footprint audits, climate action plans and EcoSchools certification, they invariably spend less time on the nuts and bolts of academic instruction.

This might be less of a concern if the academic basics were already understood by students. But they aren’t. According to the most recent data from the Programme for International Student Assessment (PISA), the math skills of Ontario students declined by the equivalent of nearly two grade levels over the last 20 years while reading skills went down by about half a grade level. The downward trajectory was even sharper in B.C., with a more than two grade level decline in math skills and a full grade level decline in reading skills.

If any school board wants to declare an emergency, it should declare an academic emergency and then take concrete steps to rectify it. The core mandate of school boards must be the education of their students.

For starters, school boards should promote instructional methods that improve student academic achievement. This includes using phonics to teach reading, requiring all students to memorize basic math facts such as the times table, and encouraging teachers to immerse students in a knowledge-rich learning environment.

School boards should also crack down on student violence and enforce strict behaviour codes. Instead of kicking police officers out of schools for ideological reasons, school boards should establish productive partnerships with the police. No significant learning will take place in a school where students and teachers are unsafe.

Obviously, there’s nothing wrong with school boards ensuring that their buildings are energy efficient or teachers encouraging students to take care of the environment. The problem arises when trustees, administrators and teachers lose sight of their primary mission. In the end, schools should focus on academics, not environmental activism.

Michael Zwaagstra

Senior Fellow, Fraser Institute
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