Odd Lots The Treasury Payment System Elon Musk Now Has Access To
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Feb 5, 2025 Nathan Tankus, author of the Notes on the Crisis newsletter, delves into Elon Musk's access to the Treasury's Bureau of Fiscal Service. He discusses the critical role this unit plays in government finance and the ramifications of outdated technology like COBOL. The conversation takes a legal turn with the complexities of impoundment, highlighting the tension between executive power and congressional authority. Tankus raises alarms about potential operational risks and market stability if this payment system were to fail.
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BFS Role
- The Bureau of Fiscal Service (BFS) is an obscure Treasury unit handling most government payments.
- It's crucial yet unknown, sending tax refunds, Social Security, and other payments.
Payment System Complexity
- Sending government payments is complex due to scale, old systems, and specialized processes.
- Modernization efforts haven't eliminated reliance on aging programmers and COBOL.
COBOL Modernization Challenges
- Modernizing COBOL systems is difficult due to their confidential nature and complex business logic.
- There's no readily available data set for AI training due to the sensitive data involved.