This is so funny:
As Stephanie Kelton has also noted on Substack, Musk has discovered that the US government does, when it spends, create money out of thin air.
The money it spends does not come from somewhere, let alone taxpayers. It is just created by marking up bank accounts with the sums spent.
Of course, those who understand modern monetary theory have known this for a very long time. Now Musk has discovered it for real.
That means a number of things.
First, the US government can never run out of money, contrary to all Musk's claims.
Nor can it go bust, because it can always pay its bills, meaning his whole programme of cuts is totally unnecesary.
In that case the US social security system cannot be a Ponzi scheme, as he claims.
And, Rachel Reeves needs to be told all this, because for once, Musk is right.
Money really is created out of thin air, and always will be. It just requires tax to make sure it continues to have value, which may be the bit he does not like.
I wonder if Ted Cruz believes him?
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I wonder if he’ll smash them up?
š
This is hard to believe.
It takes a heidbanger like musk to show Rachel from accounts how things actually work.
Oh well, as long as Rachelās listening.
Hope the SNP are paying attention.
Firstly, did he really not know? Kelton mentions in her book that Trump appeared to be aware of MMT. Secondly, what is Musk’s angle? Are they planning to demonise fiat currencies and push for going back to a gold standard? Is it an attempt to somehow legitimise crypto? Are they going to just give their supporters money from the magic boxes?
Good questions
Who knows? I have not seen the whole thing
I would say Trump and Musk do believe they can replace the fed/fractional reserve banking/us dollar system triumverate with the fed/frb/crypto
Evidence?
And why, now they know this?
Definitely Crypto.
No regulation.
Suits trump and his fan boys.
But I have been told many many times, often by notable figures, that Musk is a āgeniusā? Never mind that his āCybertruckā does not look like the work of a genius, nor does what he has done to Twitter since his takeover have the ring of genius about it. Now we learn that he is running amuck through the US government without a clue of how it works or is funded. Truly the age of bullshit is upon us.
Hmmm, could be dangerous as I doubt he understands the tax side
Obviously the smartest guy in the room. Not
BoE has in the past produced papers showing how they create money out of thin air?
Presumably they would not claim to be MMT’ers ?
He was much clearer than them.
Is the next step in our āfriends across the pondā plan is to remove governmentsā power over the public purse – presumably just case governments ever admit they have it and dare to try to do some good with it?
Musk has ādiscoveredā how public finances work but apparently Treasury computers donāt keep accurate enough records of where the money goes so what might come next? We need cryptocurrencies and the blockchain āfor transparencyā?
https://www.morningstar.com/news/marketwatch/2025031830/elon-musk-discovers-magic-money-computers-or-how-the-us-financial-system-actually-works
https://www.dailymail.co.uk/news/article-14509707/Elon-Musk-reveals-DOGE-14-magic-money-computers.html
Who knows?
Ted Crux has put the video up on you tube
Elon Musk REVEALS The 14 MAGIC MONEY Computers That Send Money Out of NOTHING – Verdict with Ted Cruz
https://www.youtube.com/watch?v=_q0v3ufu9TY
Add your comments š
Thanks
I added your video on MMT to the youtube comments
Spreading the word
Thanks
I subscribe to Stephanie Kelton’s Substack but don’t pay – so, while I got notice of her article I could only read the first two paragraphs; thanks, Richard, for enabling me to circumvent her paywall.
She had different things to say.
I don’t think that Musk will allow the government the power to issue its own currency when it wants.
That would suggest a return to the Gold Standard and/or a cryptocurrency, both of which the private sector can profit from.
I hope I’m wrong.
What is concerning about this is he – will see it as fault in the system and call it cheap or free money. (As opposed to real money – gold backed, which many people still believe.)
Some people believe money issuance or ‘printing money’ as exceptional rather than the norm.
So will he risk trying to close it down and this creating havoc in the system?
Maybe it won’t get that far.
He will have to find an alternative to close it down.
Richard,
Musk has floated the idea of using blockchain in federal transactions, replacing the US dollar. It’s common knowledge.
And if that were to happen, think of the next stages in their messed-up minds.
We all know you can’t replace a bone fide global reserve currency with some market gambling vehicle, but my previous point was this is what is inside the puny minds of these powerful feckwits.
Maybe one day heāll learn that banks create money out if thin air too.