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"Elon Musk Takes Control of U.S. Treasury Payment System, Sparking Economic Concerns Amid Federal Spending Cuts"

Economy News – Analysis

Elon Musk and his team have assumed control over the U.S. Treasury payment system, which is responsible for managing trillions in annual transactions, raising significant concerns among policymakers.

Musk, recognized as the wealthiest individual globally, is leading initiatives aimed at curtailing federal expenditure under the Trump Administration in alignment with the government’s ongoing efficiency drive.

He stated, “The only way to stop fraud and waste of taxpayer money is to closely monitor cash flows and temporarily halt suspicious transactions for review.”

Such actions have stirred discontent among those previously involved in or reliant upon fraudulent payments, as Musk acknowledged, “This is quite troubling.”

The Treasury payment system operates under stringent oversight, managing approximately $6 trillion annually for various federal obligations, including Social Security, health care, and salaries.

New Treasury Secretary Scott Besent granted Musk official access to the payment system after initially resisting his entry, a decision that marks a pivotal shift in Treasury operations.

President Trump praised Musk’s efforts in cost reduction, remarking, “While there may be disagreements, I believe he is doing an excellent job.”

Reports indicate that Musk has replaced several high-level personnel within the Treasury, bringing in younger staff from his own network, particularly those associated with his cryptocurrency ventures, thus gaining access to systems typically reserved for seasoned professionals.

In an unsettling move, most Treasury employees received an email offering early resignation with a substantial termination payment, prompting many legal experts to caution against such an offer.

Prominent Democrats have voiced serious concerns about Musk’s and his team’s emerging control over the government’s financial flow, perceiving this as a potential overreach of authority.

Senator Ron Wyden, a leading figure on the Senate Finance Committee, remarked, “They are seizing the instruments necessary for a coup.”

Senator Elizabeth Warren, a notable member of the Senate Banking Committee, described Musk’s involvement as “very dangerous,” warning of a systemic risk to the economy.

In a letter to Besent, Warren expressed her alarm at entrusting a vital system, which affects millions of Americans, to someone like Musk, whom she labeled as an “uncomfortable billionaire.” She emphasized that sidelining experienced staff in this critical area increases the risk of governmental mismanagement and potential default on debts, which could trigger a global financial crisis.

On social media, Musk anticipated “guaranteed excitement” in response to an announcement that the Department of Government Efficiency would uncover “unprecedented levels of fraud and corruption” across numerous agencies.

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