 |
| Apple Form 10-Q fiscal Q3 2011 (Click on image to view full size) |
July 30, 2011
The most recent financial results of Apple dated June 25, 2011 shows the company holds cash balance of $76.156 billion, which is more than the U.S. treasury closing balance as of Wednesday, July 27, 2011. United States has a cash of $73.768 billion to spend.
Is it the time to borrow from Steve Jobs? Should United States start selling iPhones?
The United States House of Representatives is due to vote the endless negotiations over raising debt ceiling, which will allow the government to borrow more money in order to cover spending commitments.
If the negotiation gets a positive vote, the government can extend the present limit of $14.3 trillion dollars. If it fails, it could find itself struggling in making the payments, and also the government could risk the loss of its AAA credit rating.
At present the total spending of U.S. government every month is around $200 billion more than what it collects in revenue.
According to economic analysts, Apple may be keeping cash reserves in such a huge amount due to economy stability concern. Also, such huge cash reserve shows how powerful Apple has become since 2007 when its first iPhone was launched. With a market value of $362 billion, Apple is now the second biggest company in the world. Exxon Mobil Corp. tops the list with market value of $395 billion.
In the mid 1890s, U.S. President Cleveland asked J.P. Morgan for help when the government faced bankruptcy after 1893 financial panic. A $60 million in gold was pledged, which is around $1.5 billion today.
After the New York financier help the condition of Treasury stabilized, and within weeks the danger of dollar passed away.
Historian H.W. Brands wrote in his account "The Upside-Down Bailout": "The fact that Morgan had become a cosigner on the federal debt was what impressed the markets."
SHARE THIS NEWS
Comments
Post a Comment
User comments posted on Asia Pacific News website are the sole views and opinions of the comment writer and are not representative of any of our staff, writer, agency, reporter or citizen journalist. We accept no liability and will not be held accountable for user comments.
We reserve the right to edit, to remove or to censor any comments.
Webmasters seeking for backlinks may contribute a guest post with two outbound links (Home page and internal page) and submit it in the below comment box, which will be shifted to blog post under suitable category by moderator.