• Apple has more cash than US government


    Apple may not have more money than God. But it's got more cash than Uncle Sam.

    As the government struggled to reach an agreement on raising the debt ceiling, the US Treasury's cash balance fell to $US74 billion this week. That's less than the $US76 billion that Apple now has in cash.

    It's not terribly likely that the government will ask Apple chief executive Steve Jobs for help. But it wouldn't be the first time the government has asked for a bailout from an industry mogul.

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    In the mid-1890s, with the US economy still recovering from the financial panic of 1893, the US Treasury was in danger of going bankrupt as worried investors clamored to collect what they were owed from US gold reserves. With few options left, President Cleveland met with New York financier JP Morgan, who pledged a whopping $US60 million in gold. Adjusted for inflation, that would be about $US1.5 billion today.

    "The fact that Morgan had become a cosigner on the federal debt was what impressed the markets," historian HW Brands wrote in his account "The Upside-Down Bailout." "Within days the Treasury's condition stabilised; within weeks the dollar's danger had passed."

    To be fair, comparing Apple's cash reserves with the Treasury's is not exactly apples to apples.

    Apple's billions are essentially the funds in its bank accounts, while the federal number represents the amount of money the government has left before it hits the legal debt limit a figure that can be changed by Congress.

    At about $US362 billion, Apple is the second-largest company in the world by market value (behind Exxon Mobil at $US395 billion) big by any standard, but still far smaller than the US government, which will spend close to $US3.8 trillion this year, 10 times what Apple is worth.

    Still, Apple's reasons for keeping such a giant cash stockpile may well be related to worries about the stability of the US government's finances.

    "One of the reasons US companies have amassed so much cash is that it provides them financial flexibility in times of heightened uncertainty," said Laurie Simon Hodrick, a professor of business economics at Columbia University's business school. "It might seem ironic, but as the risk of a government default grows, bringing with it the specter of higher interest rates, the incentives for firms to finance with internally generated cash grows as well."
    Comments 16 Comments
    1. mjmacky's Avatar
      mjmacky -
      How does a fictitious character have any liquidable assets? I didn't read past the first sentence
    1. darkmawl's Avatar
      darkmawl -
      I have more money then the US goverment. I have a 1000 euro's on my bank account. I believe the US goverment has a debt of a couple of billion. So not really there money
    1. a7x's Avatar
      a7x -
      Quote Originally Posted by darkmawl View Post
      I have more money then the US goverment. I have a 1000 euro's on my bank account. I believe the US goverment has a debt of a couple of billion. So not really there money
      This.
    1. iLOVENZB's Avatar
      iLOVENZB -
      I doubt that your expenses are no where near the U.S. Governments though darkmawl .
    1. darkmawl's Avatar
      darkmawl -
      Quote Originally Posted by iLOVENZB View Post
      I doubt that your expenses are no where near the U.S. Governments though darkmawl .
      Niether is my income
    1. predateur's Avatar
      predateur -
      usa is the poorest countries in the world , thats why.usa have : -14.000billions$
    1. dickbillz3's Avatar
      dickbillz3 -
      Quote Originally Posted by predateur View Post
      usa is the poorest countries in the world , thats why.usa have : -14.000billions$
      Hopefully your joking?!? The US may be in debt, but far from the poorest country in the world. I believe the poorest country in the world is actually Zimbabwe.
    1. stlcardinal9's Avatar
      stlcardinal9 -
      Quote Originally Posted by dickbillz3 View Post
      Quote Originally Posted by predateur View Post
      usa is the poorest countries in the world , thats why.usa have : -14.000billions$
      Hopefully your joking?!? The US may be in debt, but far from the poorest country in the world. I believe the poorest country in the world is actually Zimbabwe.
      Yeah at one point hyper inflation was so bad in Zimbabwe they were using their money as toilet paper because toilet paper cost more!!
    1. bubbyspencer's Avatar
      bubbyspencer -
      we have by far the highest GDP of any country. i believe ours is 14 trillion and china's in second with around 5 trillion. we have all of this debt because we give money away to shit holes in the middle east and anyone else who wants some. we are definitely not the poorest by any means, no ones compares to us with non-liquidated assets.
    1. unclemilty74's Avatar
      unclemilty74 -
      Quote Originally Posted by mjmacky View Post
      How does a fictitious character have any liquidable assets? I didn't read past the first sentence
      Silly wabbit, Apple is not fictional ...
    1. bobbintb's Avatar
      bobbintb -
      Quote Originally Posted by mjmacky View Post
      How does a fictitious character have any liquidable assets? I didn't read past the first sentence
      apple isnt a "fictitious character". its a company

      Quote Originally Posted by a7x View Post
      Quote Originally Posted by darkmawl View Post
      I have more money then the US goverment. I have a 1000 euro's on my bank account. I believe the US goverment has a debt of a couple of billion. So not really there money
      This.
      couple of billion? that wouldnt really be a problem. its well into the trillions.
    1. mjmacky's Avatar
      mjmacky -
      Wow, it's flying way over everyone's heads, "god" is a fictitious character
    1. whatcdfan's Avatar
      whatcdfan -
      Quote Originally Posted by bubbyspencer View Post
      we have by far the highest GDP of any country. i believe ours is 14 trillion and china's in second with around 5 trillion. we have all of this debt because we give money away to shit holes in the middle east and anyone else who wants some. we are definitely not the poorest by any means, no ones compares to us with non-liquidated assets.
      Please throw a bucket of vaporizing hot water on me, I am probably dreaming as nobody could be this much stupid.
    1. bubbyspencer's Avatar
      bubbyspencer -
      Quote Originally Posted by whatcdfan View Post
      Quote Originally Posted by bubbyspencer View Post
      we have by far the highest GDP of any country. i believe ours is 14 trillion and china's in second with around 5 trillion. we have all of this debt because we give money away to shit holes in the middle east and anyone else who wants some. we are definitely not the poorest by any means, no ones compares to us with non-liquidated assets.
      Please throw a bucket of vaporizing hot water on me, I am probably dreaming as nobody could be this much stupid.
      what seems to be the stupidity here?
    1. whatcdfan's Avatar
      whatcdfan -
      Not being able to realize the fact, that U.S actually yields the money from the middle eastern countries, is supremely idiotic.Whatever they give out is only a penny investmentwhich is insured for far greater returns by the use of power.

      If making money is not the reason, why does U.S needs all the power for? You see, you use the power to get the money and you use the money to get the power so the power and the money and the money and the power are synonyms.

      Btw what do you think, why the Jewish state was established?
    1. Skiz's Avatar
      Skiz -
      Quote Originally Posted by iLOVENZB View Post
      I doubt that your expenses are no where near the U.S. Governments though darkmawl .
      Neither is Apple's, so I fail to see any logical comparison in the two.