02/08/2011
According to the latest figures, entertainment giant Apple has more money than the government of the US, another nail in the financial coffin of the world super-power.
The latest accounts from Apple have revealed that the firm has around $76.4 billion in its reserves whereas the US government currently holds just $73.7 billion. And the situation is just likely to get even worse as the US government struggles with its debts whilst Apple's profits continue to grow.
Despite the deadline for the debt ceiling to be raised rapidly approaching, Congress have still been unable to reach an agreement, with right wing Republicans refusing to bow to pressure to save the country from a financial crisis.
The prospect of the US being unable to pay its bills is leading to anxiety not just among investors, but also among those who depend on the government to pay their wages. Soldiers serving in Afghanistan have asked for assurances that they will be paid but chiefs were unable to confirm what would happen if the government ran out of money to pay their bills. However, it is widely expected that those in the military will rank lower in the government's priorities than foreign debts and pensioners, meaning that servicemen may well have to wait for their wages.
Also expected to take precedence are vulnerable groups such as the unemployed and socially funded programmes such as medical assistance.
There has also been speculation that other federal employees will be asked to work for no money until a resolution is reached.
Despite being assured that they are one of the highest on the list to receive their money, China has denounced the actions of the US, calling the White House's failure to come to an agreement as 'irresponsible,' as the effects of a default will have wide-reaching implications for many other economies.
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