47 Morning Update Exclusive: 1-on-1 w Elon from the White House

Summary

The 47 Morning Update with Ben Ferguson Episode Summary: "Exclusive: 1-on-1 w Elon from the White House" Release Date: March 17, 2025

In this exclusive episode of The 47 Morning Update, host Ben Ferguson sits down with Senator Ted Cruz and renowned entrepreneur Elon Musk for an in-depth conversation about government fraud, waste, and the future of artificial intelligence. Recorded at the White House, this episode delves into Musk's revelations about systemic issues within federal departments, the political ramifications of fraud, and his perspectives on AI advancements. Below is a detailed summary of the key discussions, insights, and conclusions drawn during the interview.

---

1. Introduction to the Exclusive Interview

Ben Ferguson opens the episode by highlighting the significance of the special interview with Elon Musk and Senator Ted Cruz. He emphasizes Musk's mission to uncover government fraud, waste, and abuse, and teases the audience with intriguing insights about misappropriation of tax dollars by government departments.

Ben Ferguson [00:21]: “Now, Elon Musk wanted to expose government fraud, waste and abuse. And that's exactly what he's been doing...”

---

2. Government Fraud and Waste Exposed

Elon Musk begins the conversation by discussing his findings on government expenditures, revealing alarming levels of waste and potential fraud across various federal departments.

Elon Musk [00:00]: “We saw a lot of payments going out of treasury that had no payment code and no explanation for the payment...”

Senator Cruz probes further into the nature of these expenditures, leading Musk to categorize them as both waste and fraud.

Ben Ferguson [03:05]: “Look, I think it's mostly if you say, look, what's the waste to fraud ratio? Yeah, in my opinion, it's like 80% waste, 20% fraud.”

---

3. Breakdown of Fraudulent Activities

Musk provides specific examples of governmental mismanagement, highlighting excessive software licenses and media subscriptions that outnumber the actual employees in departments.

Elon Musk [02:20]: “...there are far too many software licenses and media subscriptions, meaning many more software licenses and media subscriptions than there are humans in the department.”

He further explains incidents where contracts were not properly terminated, resulting in unauthorized payments.

Elon Musk [03:20]: “...a lot of payments going out of treasury that had no payment code and no explanation for the payment...”

---

4. The Stacey Abrams Scandal

A significant portion of the discussion centers on the controversial $1.9 billion grant to Stacey Abrams’ nonprofit, which Musk and Cruz describe as a "fake NGO."

Elon Musk [04:03]: “A fake NGO.”

Ted Cruz [04:13]: “...she knew, like when you get $2 billion, you don't miss that. That's not an accident.”

Musk criticizes the lack of oversight and auditing for nonprofits receiving government funds, leading to lavish expenditures by the recipients.

Elon Musk [04:33]: “...there’s no auditing subsequently of that nonprofit... extremely lavish, like insane salaries, expense everything to the nonprofit, buy jets and homes and all sorts of things.”

---

5. Magic Money Computers: A Systemic Issue

The conversation shifts to Musk's revelation about "Magic Money computers" within the Treasury and other departments—systems that can dispense funds without proper authorization.

Elon Musk [05:29]: “...I call a Magic Money computer. Any computer which can just make money out of thin air.”

Musk elucidates the prevalence of these systems, identifying fourteen such computers across various departments, which are responsible for trillions in unauthorized payments.

Elon Musk [06:16]: “They just send money out of nothing... we found now 14 magic money computers.”

---

6. Political Ramifications of Fraud

Musk argues that the fraudulent allocation of entitlements is a deliberate strategy by Democrats to influence voter demographics by funding NGOs and attracting illegal immigrants who are dependent on government handouts.

Elon Musk [07:50]: “...it's in well north of 100 billion, maybe 200 billion... bring in 10, 20 million people who are beholden to the Democrats for government handouts and will vote overwhelmingly Democrat.”

He warns of a future where swing states become solidly Democratic due to these tactics, leading to a one-party socialist state.

Elon Musk [08:55]: “America will be permanent deep blue socialist state. The House, the Senate. The Presidency and the Supreme Court will all go hardcore down.”

---

7. The ActBlue Controversy

Senator Cruz introduces the topic of ActBlue and Arabella Network, questioning their funding sources and suggesting possible foreign money involvement.

Ted Cruz [10:29]: “...Do you think it's foreign money? Chinese money? Where do...”

Musk contends that many large donations are questionable, tracing them back to individuals who deny making such contributions, indicating a significant scam.

Elon Musk [10:37]: “...if those contributors found themselves on the act blue list, they're like, it wasn't me.”

He labels the activities associated with ActBlue as funding terrorist activities.

Ted Cruz [11:05]: “...if it can actually be shown that they are funding firebombing of Tesla charging stations...”

---

8. The Future of AI and Robotics

Transitioning to technological advancements, Musk shares his vision for the future of artificial intelligence and robotics.

Ben Ferguson [11:23]: “Let me ask AI, in 10 years, how is life going to be different because of AI for just a normal person?”

Musk predicts that AI will surpass human cognitive abilities within a decade and anticipates the proliferation of humanoid robots and autonomous vehicles.

Elon Musk [11:34]: “In 10 years probably 90% of miles driven will be autonomous.”

He envisions a society where goods and services become nearly free due to the efficiency of AI and robotics, raising questions about societal fulfillment and meaning.

Elon Musk [13:25]: “...goods and services will become close to free... the challenge will be fulfillment. How do you drive fulfillment and meaning in life?”

---

9. Conclusion and Further Listening

Ben Ferguson wraps up the episode by encouraging listeners to access the full two-part interview available on his co-host Ted Cruz’s podcast, Verdict with Ted Cruz, to gain comprehensive insights from the conversation.

Ben Ferguson [14:00]: “Now if you'd like to hear the rest of the conversation, make sure you Download Verdict with Ted Cruz right now...”

---

Key Takeaways:

• Government Mismanagement: Elon Musk exposes significant waste and fraud within federal departments, highlighting issues like excessive software licenses and unauthorized payments.

• Stacey Abrams' NGO: The $1.9 billion grant to Stacey Abrams' nonprofit is criticized as a major example of unaccounted government spending and potential corruption.

• Magic Money Computers: These systems facilitate unauthorized disbursements, contributing to trillions in wasteful expenditures.

• Political Strategy: Fraudulent allocation of funds is alleged to be a tactic for demographic manipulation, favoring Democratic power retention.

• ActBlue Scrutiny: Questions are raised about the legitimacy of large donations to ActBlue, suggesting potential foreign interference and criminal activities.

• AI and Robotics Future: Musk envisions a transformative impact of AI, leading to near-free goods and autonomous transportation, while also posing challenges for societal fulfillment.

This episode presents a compelling critique of current governmental practices and a visionary outlook on technological advancements, offering listeners a blend of investigative reporting and futuristic speculation.

Transcript

[Elon Musk]

We saw a lot of payments going out of treasury that had no payment code and no explanation for the payment. Okay. That contract was supposed to be shut off, but someone forgot to shut off that contract. And so the company kept getting money. Now, is that waste or fraud?

[Ben Ferguson]

Both.

[Elon Musk]

Yeah. You are listening to a 47 Morning Update exclusive with Ben Ferguson.

[Ben Ferguson]

Good Monday morning. It is the 47 Morning Update, Ben Ferguson with you. And this is going to be a special episode of the 47 Morning Update, as on Friday, Senator Cruz and I were invited to come to the White House to sit down in a lengthy conversation with Elon Musk. Now, Elon Musk wanted to expose government fraud, waste and abuse. And that's exactly what he's been doing. But he shared some new information with us that is truly incredible about what he has found recently within DOGE and government departments that are abusing your tax dollars. Now, I am going to play for you a part of that interview right now on the 47 Morning Update. If you want to hear the entire interview, you need to go and subscribe for free, obviously, and download Verdict with Ted Cruz. I co host that podcast, Center Cruise, and you can hear part one in its entirety. But here is the beginning of that conversation for you right here. And again, do not forget, if you want to hear the entire two part series, it is with Verdict with Ted Cruz, wherever you get your podcasts. So here is our conversation with Elon Musk.

[Ted Cruz]

What surprised you about the federal government? I assume you came in and assumed it was bad. Is it worse than you expected?

[Elon Musk]

It is worse than I expected. But on the plus side, that means there's more opportunity for improvement. So look, if you look on the bright side, there's actually a lot of opportunity for improvement in federal government expenditures. Because it's so bad. If it was a well run ship, it would be very difficult to improve.

[Ted Cruz]

A lot of the crazy expenditures, things like 2 million bucks for sex change surgeries in Guatemala, an essential transgendered mice, and Sesame street in Iraq, a lot of that has gotten attention. But some of the stuff you've told me about, tell us about computer licenses and government agencies.

[Elon Musk]

Yeah. So most of what DOGE is finding, you don't need to be Sherlock Holmes. It's very obvious, basic stuff. So in every government department, I say every, because we've not yet found a single exception, there are far too many software licenses and media subscriptions, meaning many more software licenses and media subscriptions than there are humans in the department.

[Ted Cruz]

Like you were saying, like an agency with 15,000 people might have 30,000 licenses.

[Elon Musk]

Yes.

[Ted Cruz]

And even of the 15,000 employees, a good chunk of them hadn't used the license, had never logged on or used the application.

[Elon Musk]

Yes.

[Ben Ferguson]

Is it incompetent that you're finding, or is this like the biggest money laundering scheme in the history of the world that you're finding?

[Elon Musk]

Look, I think it's mostly if you say, look, what's the waste to fraud ratio? Yeah, in my opinion, it's like 80% waste, 20% fraud. But you do have these sort of gray areas.

[Ted Cruz]

Yep.

[Ben Ferguson]

Example.

[Elon Musk]

Example would be. So we saw a lot of payments going out of treasury that had no payment code and no explanation for the payment. And then we'd try to figure out what that payment is, and we'd see that, okay, that contract was supposed to be shut off, but someone forgot to shut off that contract. And so the company kept getting money.

[Ben Ferguson]

Wow.

[Elon Musk]

Now is that waste or fraud?

[Ted Cruz]

Both.

[Ben Ferguson]

Both?

[Elon Musk]

Yeah.

[Ben Ferguson]

You know, you're getting something you're not supposed to get.

[Elon Musk]

You're not supposed to get it, but you. But the government sent it to you, and nobody from the government asked for it back. Take for example, the $1.9 billion given to Stacey Abrams.

[Ted Cruz]

Yeah.

[Elon Musk]

A fake NGO.

[Ted Cruz]

Utter insanity.

[Ben Ferguson]

Explain it.

[Ted Cruz]

That's. That's just corrupt. I think that's paying off cronies at that point.

[Elon Musk]

1,000%.

[Ted Cruz]

Yeah, yeah. And by the way, she knew, like when you get $2 billion, you don't miss that. That's not an accident.

[Elon Musk]

That allegedly it was for like, you know, environmentally friendly appliances or something. And they've given like, like 100 appliances so far, which $2 billion. It's a very expensive toaster appliance.

[Ted Cruz]

That's sub zero, fridge boy. It's nice, right?

[Elon Musk]

Obviously one of the biggest scam fraud holes we've uncovered, which is really crazy, is that the government can give money to a so called nonprofit with very few controls, and then that. And there's no auditing subsequently of that nonprofit. So there's no. So this is with the 1.9 billion. Stacey Abrams. They then give themselves extremely lavish, like insane salaries, expense everything to the nonprofit, buy jets and homes and all sorts of things.

[Ted Cruz]

Live like kings and queens.

[Elon Musk]

Yes.

[Ted Cruz]

On the taxpayer dime.

[Elon Musk]

Correct. This is happening at scale. It's not just one or two. We're seeing this everywhere.

[Ted Cruz]

Now. One of the things you told me about is crazy is what you call it. The same magic money, computers at the very reason. So tell us about it, because I never heard of that until you brought that up.

[Elon Musk]

Okay, so you may Think that these government computers, like all talk to each other, they synchronize, they add up what funds are going somewhere and it's, you know, it's coherent that the, you know, there's. And that the numbers, for example, that you're presented as a Senator.

[Ted Cruz]

Yeah.

[Elon Musk]

Are actually the real numbers.

[Ted Cruz]

One would think.

[Elon Musk]

One would think they're not.

[Ted Cruz]

Yeah.

[Elon Musk]

Okay. I mean, they're not totally wrong, but they're probably off by 5% or 10% in some cases. So I call a Magic Money computer. Any computer which can just make money out of thin air. Best Magic Money.

[Ted Cruz]

So how does that work?

[Elon Musk]

It just issues payments.

[Ted Cruz]

And you said there's something like 11 of these computers at treasury that are sending out trillions in payments.

[Elon Musk]

They're mostly Treasury. Some are with the sum at HHS, some at. There's one or two at State, there's some at DOD. I think we found now 14 magic money computers.

[Ted Cruz]

14, okay.

[Elon Musk]

They just send money out of nothing.

[Ted Cruz]

Why do they hate you so much?

[Elon Musk]

Well, because we're clearly over the target. If DOGE was ineffective, if we were not actually getting rid of a bunch of ways and fraud and a bunch of that fraud. I mean, the fraud we're seeing is overwhelmingly on the, on the left. I mean, it's not zero on the right, but these NGOs are almost all left wing NGOs that are being funded, for example. Yeah. So they, they hate me because DOGE is being effective and DOGE is getting rid of a lot of waste. Before that, they were. That people on the left were taking advantage of. That's what it comes down to. And the single biggest thing that they're worried about is that DOGE is going to turn off fraudulent payments of entitlements. I mean, everything from Social Security, Medicare, unemployment, disability, Small Business Administration loans, turn them off to illegals. This is the crux of the matter. Yep. Okay. This is, this is the, this is the thing that, why they really hit my guts and want me to die.

[Ted Cruz]

And do you think that's billions? Hundreds of billions. What do you think the scale is of that?

[Elon Musk]

I think across the country, it's in the, it's well north of 100 billion, maybe 200 billion. So by using entitlements fraud, the Democrats have been able to attract and retain vast numbers of illegal immigrants and buy voters. And buy voters, exactly. Basically bring in 10, 20 million people who are beholden to the Democrats for government handouts and will vote overwhelmingly Democrat, as has been demonstrated in California. This is overwhelmingly.

[Ben Ferguson]

It's an election Strategy.

[Elon Musk]

Yes.

[Ted Cruz]

It's power.

[Elon Musk]

Yes. And it doesn't take much to turn the swing states blue. I mean, often a swing state might be won by 10, 20,000 votes.

[Ted Cruz]

Sure.

[Elon Musk]

So if the Dems can bring in 200,000 illegals and over time get them legalized. Not counting any cheating that takes place. Because there is some cheating. But even without cheating, if you bring in illegals that are 10x the voter differential in a swing state, it will no longer be a swing state.

[Ted Cruz]

Right.

[Elon Musk]

And the Dems will win all the swing states. Just a matter of time and America will be permanent deep blue socialist state. The House, the Senate.

[Ted Cruz]

Yep.

[Elon Musk]

The Presidency and the Supreme Court will all go hardcore down. They will then further cement that by bringing in even more aliens so you can't vote your way out of it. Their objective is to make it one party socialist state. And it'll be much worse than California because at least California is mitigated by the fact that someone can leave California.

[Ted Cruz]

You can go to Texas.

[Elon Musk]

Yeah, exactly. 20 make everywhere California. But worse.

[Ben Ferguson]

My kids, now all three of my boys think that the. That Teslas are awesome. The cyber truck is the car they want their dad to buy, which I laugh because I never could have imagined that five years ago. And now I'm looking at well worth.

[Ted Cruz]

The White House and the President's Tesla sparked, which is the coolest. Damn.

[Ben Ferguson]

But I mean, you've changed a generation. When you look at my kids are 6 and 8 and they're going, dad, buy a cyber truck. And I'm considering it. That's a, that's a full circle in a weird way.

[Elon Musk]

Yeah. Well, I do have this theory that the most entertaining outcome is the most likely. So yeah, it seems often to be true. You see. Like what, what twist or turn of fate? Well, I would generate the highest ratings if this was. If we were a TV show. What twist alternative would generate the highest ratings that there's a good chance that happens?

[Ted Cruz]

Well, I will say if. If ActBlue and Arabella Network is a.

[Elon Musk]

Huge scam, next level.

[Ted Cruz]

Do you think it's foreign money? Chinese money? Where do. Where do you think the money in ActBlue is coming from? How do you figure that out?

[Elon Musk]

Well, it's not coming from the, from a whole bunch of, from a groundswell of public support because when individual donors looked at and act blue, a bunch of them turn out to be like die hard Republicans.

[Ted Cruz]

Right.

[Elon Musk]

People have never given money in their life. So you're going to track down a bunch of these people where it says, oh, I gave $16,000. And they're like, I didn't give $16,000. What are you talking about? There's this, well, if, if those conference of mine found themselves on the act blue list, they're like, it wasn't me.

[Ted Cruz]

So that's if it can actually be shown that they are funding firebombing of Tesla charging stations. That's objectively a criminal act, that is funding terrorist activity. And the statutes make clear that an incendiary device qualifies.

[Elon Musk]

So that's a terrorist activity.

[Ted Cruz]

Let me ask AI, in 10 years, how is life going to be different because of AI for just a normal person?

[Elon Musk]

Well, 10 years is a long time. In 10 years probably AI could do anything better than a human can cognitively, probably almost. I think in 10 years, based on the current rate of improvement, AI will be smarter than the smartest human. There will also be a massive number of robots, so humanoid robots.

[Ted Cruz]

By the way, I gotta ask, how come your robots look so much like the creepy robots for my robot? Was that intentional or just.

[Ben Ferguson]

I was hoping he was going to say yeah, just to mess with you.

[Elon Musk]

It's not meant to look like any prior robot. And we'll iterate the design and you'll be able to have a lot of the robot parts are cosmetic. You'll be able to switch out the kind of snap on cosmetic parts of the robot, make it look like something else would be dying. So there'll be ultimately billions of humanoid robots, all cars will be self driving in 10 years. In 10 years, probably 90% of miles driven will be autonomous.

[Ted Cruz]

Huh, wow, that fast?

[Elon Musk]

Yeah, in five years probably 50% will miles will driven, will be autonomous.

[Ted Cruz]

Now if AI will be smarter than any person, how many jobs go away because of that? And what do people do if you've got millions of people that are losing their jobs like that? A lot of people are understandably freaked out about that.

[Elon Musk]

Well, goods and services will become close to free. So it's not as though people will be wanting in terms of goods and services.

[Ted Cruz]

So why is that? Why are goods and services free in an AI world or close to free?

[Elon Musk]

Well, you have, I don't know, tens of billions of robots, they will make you anything or provide any service you want for basically next to nothing. It's not that people will be, will have a lower standard of living, they'll have actually much higher standard of living. But the challenge will be fulfillment. How do you drive fulfillment and meaning in life?

[Ben Ferguson]

Now if you'd like to hear the rest of the conversation, make sure you Download Verdict with Ted Cruz right now, wherever. You're listening to this podcast and you can hear part one in its entirety, and I'll see you back here tomorrow.