Apple holding more cash than USA

[Snackman]

Apple now has more cash to spend than the United States government.

Latest figures from the US Treasury Department show that the country has an operating cash balance of $73.7bn (£45.3bn).

Apple's most recent financial results put its reserves at $76.4bn (£46.9bn).

The US House of Representatives is due to vote on a bill to raise the country's debt ceiling, allowing it to borrow more money to cover spending commitments.

If it fails to reach an agreement, the federal government is likely to hit its $14.3 trillion (£8.7tn) dollar limit.

The United States is currently spending around $200bn (£122bn) more than it collects in revenue every month.

Apple, on the other hand, is making money hand over fist, according to its financial results.

In the three months ending 25 June, net income was 125% higher than a year earlier at $7.31bn (£4.6bn).

Spending Spree
With more than $75bn (£35.8bn) sitting in the bank, there has been enormous speculation about what the company will do with the money.

"Apple keeps its cards close to its chest," said Daniel Ashdown, an analyst at Juniper Research.

Industry watchers believe that it is building up a war chest to be used for strategic acquisitions of other businesses, and to secure technology patents.

Bookstore Barnes and Noble and the online movie site Netflix have both been tipped as possible targets, said Mr Ashdown.

The company may also have its eye on smaller firms that develop systems Apple might want to add to its devices, such as voice recognition.

Apple dipped into some of its reserves recently when it teamed-up with Microsoft to buy a batch of patents from defunct Canadian firm Nortel.

The bidding consortium shelled out $4.5bn (£2.8bn) for more than 6,000 patents.

Source: BBC Tech (http://www.bbc.co.uk/news/technology-14340470?utm_source=twitterfeed&utm_medium=twitter)

I never would've though this would happen.

[MKH]

Really? I've been waiting for some sort of official confirmation/news about a corporation having more money than the government. I'm not that into politics and the sort but I know enough to know that the US government system follows the mentality of a greedy child: spending more money than it has. Spending $200 BILLION more than what you should be? On what? Maybe it's just me that doesn't see any difference in everything we all complain about in the economy.

[Agent O]

Doesn't surprise me. Corporations control the government.

[Benjamin]

Tax the living fuck out of them /wishful thinking.

[CallofReach141]

Doesn't surprise me. Corporations control the government.

This.

[travz21]

We need Ron Paul to come to the rescue before we all burn in a fiery doom.

[Ryo Hazuki]

Tax 'em! :lol:

Also, Ron Paul is a fucking cunt. I don't see why so many people like him and just ignore all the bad things.

[SuperDude526]

Really? I've been waiting for some sort of official confirmation/news about a corporation having more money than the government. I'm not that into politics and the sort but I know enough to know that the US government system follows the mentality of a greedy child: spending more money than it has. Spending $200 BILLION more than what you should be? On what? Maybe it's just me that doesn't see any difference in everything we all complain about in the economy.

Three conflicts, poor people, old people, infrastructure and maintenance, and public service fees. :P

[travz21]

Also, Ron Paul is a fucking cunt. I don't see why so many people like him and just ignore all the bad things.

Examples of cuntness?

[Ryo Hazuki]

Examples of cuntness?

It's just my opinion that he is kind of a racist homophobic man.

[travz21]

A homophobic man who supports gay marriage?

[ThaHandyman]

'homophobic' is the most ignorantly idiotic and over/misused adjective i know of.

[Benjamin]

It's just my opinion that he is kind of a racist homophobic man.

Ron Paul isn't homophobic at all. I don't like him but that's not true.

His view on taxes however is messed up though.

[Ryo Hazuki]

A homophobic man who supports gay marriage?

I may be wrong about the homophobic comment, and I'm willing to admit when I am wrong. I don't agree with his support of DOMA, taxes or the right to have a "No blacks" or "No ------" signs for businesses.

[Vriska]

Apple: I suppose that's what happens when you charge outrageous amounts of money for hardware that isn't worth half that.


I may be wrong about the homophobic comment, and I'm willing to admit when I am wrong. I don't agree with his support of DOMA, taxes or the right to have a "No blacks" or "No ------" signs for businesses.

I like that he sticks to his beliefs.... I just wish his beliefs were based on reality instead of an extremely flawed ideology.
Actually scratch that... he's even sacrificing that to fit in with Republicans. Anyone who supports DOMA cannot possibly be a real Libertarian.

[travz21]

He wants the government to follow the constitution, which it isn't doing and probably hasn't done for a very long time. Most of the concepts/views I've read of his don't seem illogical or impractical. I don't get why he supported DOMA back then, but his other comments seem to show that he's fine with people doing whatever they want as long as it doesn't interfere with others. He wants to legalize drugs, pardon non-violent criminals and get them out of our overpopulated and money-burning prisons, and basically let gay people do whatever they please. He just doesn't want the federal government involved with any kinds of marriages.


His views on same sex marriages is kind of confusing though, since he did support DOMA. Here's something to read from wikipedia http://en.wikipedia.org/wiki/Political_positions_of_Ron_Paul#Sexual_orientation _legislation


Edit: Also, to get back on topic (kind of), his views on what to do in this debt crisis make the most sense from any I've heard. The dude is just a smart man who wants to follow the constitution and give us all the rights we deserve and not let our government get taken over by the evil scumbags in there now.

[Benjamin]

What really bothers me about him is that he wants to eliminate the income tax. I strongly disagree with that. He's just another person that thinks taxes are evil (even though there is no evidence to support that. In fact, if anything, history shows that high taxes are a good thing).

But his social views are a breath of fresh air out of all of the Republicans. I'll give him that.

[Super Sonic]

Tax 'em.

[Luke]

That's capitalism for you. Sure, Apple is a less than ethical company, but congragulations to them for getting into that financial position.

[Todd]

How much of that cash does Apple have in the US? Apple and a lot of other companies have huge cash reserves in offshore bank accounts and refuse to spend a dime of it in the US because they don't want to pay taxes if they bring it stateside. Corporate greed at its finest.

[ThaHandyman]

Todd, is there any legal way that the U.S. could regulate that? Or does the company's international nature supersede anything the government would try to regulate?

[travz21]

If the company is based in the US I'm pretty sure they have to pay taxes on all of their income. Even if they have foreign bank accounts.