Scramble in politics is common currency, but when it comes to the the world's leading power, the United States, information spreads like wildfire because every executive move can impact a person, a company, or even a country. In that order, the most recent event was led by the tycoon and now federal official, Elon Musk, who has thrown a poison dart at Joe Biden's administration.
As you remember, Musk was appointed director of the U.S. Department of Government Efficiency (DOGE), which is why he is now frequently consulted by traditional and digital media about his management. Participating in a podcast with Senator Ted Cruz, he accused former President Biden of maintaining operations during his administration, at least 14 computers dedicated to printing unbacked money.
LINK CARD AND EARNIn this way, Musk has provided the results of his management in the first days at the head of DOGEAs you may recall, this The body was created by President Donald Trump with the purpose of restructuring the federal government by eliminating regulations, reducing expenses, and increasing government efficiency.
To the date, Musk has plunged into uncertainty a good part of the federal workers, He has implemented significant cuts to federal agencies. The Democratic Party has questioned these measures, considering them illegal and harmful to federal employees.
Magic money
Musk, who called the resources emitted by the 14 computers as "magic money", he assured that in The first investigations of the DOGE identified 14 computers who carried out transactions without a clear source of origin.
According to the director of DOGE, The teams were distributed in different government departments, as is the case with the Treasury Department, where he says most of the computers were located. Some were also found in the Departments of Health, State, and Defense.
Certificate
Basic Bitcoin Course
Basic levelStart from scratch in Bitcoin in a clear, easy, safe and quick way. This course is specially designed for beginners practically know nothing about Bitcoin.
Musk accused that at the moment the only function detected that the machines were performing was issue payments, by creating digital money and without real backing.
One of the maxims of macroeconomics is that The issuance of unbacked or inorganic money generates inflation. The reason is that the disproportionate increase in the amount of money in circulation and without backing in reserves or production, puts pressure on prices, because There is more money chasing the same amount of goods.
In other words, Demand rises - because there is more money in the hands of the public - but there is not enough supply to meet it, which consequently causes prices to rise. It must be remembered that There is no product more expensive than the one that does not exist.
The latest economic data from the Federal Reserve show that, although the Inflation is not a major problem in the United States today., the figures continue to worry both citizens and specialists. The numbers for February 2025 show that the year-on-year inflation reached 2,8%, still well below the 9,1 peak of 2022%.
Despite this, the food and energy prices, which directly affect the population's pockets, are marking an increase, which already places them with increases of 4,2% and 6,1% in the last year, respectively.
Background of inorganic money
La Musk's complaint about irregular activity during the Biden administration, focused on an economic concept, which although it may be known in emerging countries, where governments often resort to this practice of printing inorganic money to close fiscal gaps, In the case of the United States, it is not usual for it to be aired publicly.
The last known case came to light in May 2020, when Jerome Powell, Chairman of the Federal Reserve, admitted that the central bank created money digitally by purchasing government bonds and securities, which increased the money supply.
“As a central bank, We have the ability to create money digitally, and we do this by purchasing Treasury bills or bonds or other securities. guaranteed by the government, which increases the money supply; we also print the actual currency and distribute it through the Federal Reserve bank.” Powell explained at the time.
While analysts warn that this practice may be common in the monetary policy of any government, the reality is that its application stimulates prices. It must be remembered that during the global COVID pandemic and the distortions generated by the drop in production due to the paralysis of all productive sectors, intensified the printing of unbacked money, generating an inflationary wave which affected a large part of the world and took years to overcome.
Musk criticized the use of inorganic money issuance when this practice It affects purchasing power by making products and services more expensive, while wages do not grow at the same rate as prices, affecting low-income families.
Bitcoin as an alternative
It should be remembered that as a response to inflation and to diversify the Government's assets, Trump ordered the creation of a strategic reserve of cryptocurrencies, especially Bitcoin.
BUY BITCOINBitcoin, which has a limited supply of 21 million units, is seen as a great alternative to inflation. For nowThe US government's crypto strategy is a mystery., but its key officials are pro-digital currencies, so expectations are aligned in favor of virtual assets.
