Tags: Apple | Cash | US | Government

Apple Has More Cash Now Than US Government

Friday, 29 Jul 2011 08:17 AM

Apple has more cash on hand than the federal government.

According to U.S. Treasury figures, the government has an operating cash balance of $73.8 billion, the San Francisco Chronicle reports.

Apple's last earnings reports show the company has $76.2 billion in cash and marketable securities at the end of June.

"In other words, the world's largest tech company has more cash than the world's largest sovereign government," the newspaper reports.

"That's because Apple collects more money than it spends, while the U.S. government does not," the newspaper adds.

Sales of the Apple's iconic smartphone, the iPhone, are skyrocketing.

The IDC research firm reports that global sales of iPhones rose by 141.8 percent in the second quarter of 2011, from the year ago quarter, according to examiner.com.

The government, meanwhile, is fast approaching the Aug. 2 deadline to either raise its $14.3 trillion debt limit or default on its obligations.

Congress must give the White House the green light to lift its borrowing limit but lawmakers from the two political parties have been unable to agree on a plan to narrow deficits in exchange for lifting the ceiling.

Banking CEOs, including JPMorgan's Jamie Dimon, Goldman Sachs' Lloyd Blankfein and Bank of America's Brian Moynihan, say in a letter that an agreement needs to be reached this week.

"A default on our nation's obligations, or a downgrade of America's credit rating, would be a tremendous blow to business and investor confidence — raising interest rates for everyone who borrows, undermining the value of the dollar, and roiling stock and bond markets — and, therefore, dramatically worsening our nation's already difficult economic circumstances," the executives say the letter, according to Reuters.

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