Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Post Office Warns of Default; Wants Help From Congress
Internation Business Times ^ | August 5, 2011 | IB Times Staff Reports

Posted on 08/05/2011 10:49:48 AM PDT by NautiNurse

The U.S. Postal Service lost $3.1 billion in the third quarter and warns it will default on payments to the federal government if Congress does not step in with help.

[snip]

Total mail volume for the quarter that ended June 30 fell to 39.8 million pieces, a 2.6 percent drop from the same period the previous year.

[snip]

Also, it is required to make an annual payment to the federal government of $5.5 billion. The postal service says high payroll and retiree costs and declining volume has put it in a severe bind.

[snip]

The postal service says it lost $5.7 billion during the nine-month period ending June 30, compared to a $5.4 million loss in the same period of 2010.

(Excerpt) Read more at ibtimes.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: mail; postal; postalservice; postoffice; usmail; usps
Navigation: use the links below to view more comments.
first 1-5051-67 next last
Sending snail mail is so 20th Century. When retirees live longer on pension than they worked, something has to give.
1 posted on 08/05/2011 10:49:53 AM PDT by NautiNurse
[ Post Reply | Private Reply | View Replies]

To: NautiNurse
will default on payments to the federal government if Congress does not step in with help

They owe the government money? So, they want the government to give them money? So they can pay the government what they owe the government?

We are so screwed.

2 posted on 08/05/2011 10:52:19 AM PDT by ClearCase_guy (The USSR spent itself into bankruptcy and collapsed -- and aren't we on the same path now?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse
Congress handed an over $2 Trillion dollar blank check to Obama. Now the leeches are lining up for their cut of his “stash”.
3 posted on 08/05/2011 10:52:26 AM PDT by apillar
[ Post Reply | Private Reply | To 1 | View Replies]

To: ClearCase_guy

Yep. Notice I edited out the laughable line, “The USPS does not get taxpayer funds.”


4 posted on 08/05/2011 10:56:01 AM PDT by NautiNurse (TSA Tit for Tat--Yukari Mihamae--thank you!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: NautiNurse
A few years ago I was in a Post Office and ran into some stupid rule. The clerk seemed to expect me to complain, but I just shrugged and said, "I could argue, but I know the government will win."

She went ballistic on me -- "We are NOT the government! We are a private company! We receive no tax dollars!"

I shrugged again and said, "Sure Lady. Whatever you say."

5 posted on 08/05/2011 10:59:15 AM PDT by ClearCase_guy (The USSR spent itself into bankruptcy and collapsed -- and aren't we on the same path now?)
[ Post Reply | Private Reply | To 4 | View Replies]

To: NautiNurse
I dont think we need to eliminate the USPS (yet) but - if the total volume of mail is going down - (I know, call me stupid but) shouldnt the headcount supporting that volume also go down?

Most of the stuff I get in the mail today is junk - maybe they should raise their prices on that stuff rather than the price of a stamp?

6 posted on 08/05/2011 10:59:21 AM PDT by capydick (''Life's tough.......it's even tougher if you're stupid.'')
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse

And Fannie and Freddie want 5 Billion more...


7 posted on 08/05/2011 10:59:44 AM PDT by Freddd (NoPA ngineers.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse
Time to cut costs.

We still use the postal service and they do a decent job for us. I have no idea how much it costs (bottom line) to ship a letter. How much is a stamp now? 45c? Probably costs a lot more than that when you consider all funding and costs.

8 posted on 08/05/2011 11:00:03 AM PDT by dhs12345
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse

Lol, you need to cut those retirement benefits and close the bulk mail centers. That are buy a few more million dollars homes for employees.


9 posted on 08/05/2011 11:02:18 AM PDT by org.whodat (What does the Republican party stand for////??? absolutely nothing.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ClearCase_guy

“They owe the government money? So, they want the government to give them money? So they can pay the government what they owe the government?”

It worked for GM! /sarc


10 posted on 08/05/2011 11:02:27 AM PDT by brownsfan (I miss the America I grew up in.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: ClearCase_guy

Isn’t this what the administration is doing? Borrowing money from China so they can pay the interest they owe China?


11 posted on 08/05/2011 11:02:38 AM PDT by RC2
[ Post Reply | Private Reply | To 2 | View Replies]

To: NautiNurse

Oh yea - I meant to mention - I totally piss off the people in my local post office when I ask for the President Reagan stamps and not the generic Forever stamps. One time one disgruntled cog told me they were out of them when I saw a sheet in her drawer - I thought her head was gonna explode when I told her “I think I see one more sheet in your drawer there.”


12 posted on 08/05/2011 11:03:03 AM PDT by capydick (''Life's tough.......it's even tougher if you're stupid.'')
[ Post Reply | Private Reply | To 1 | View Replies]

To: capydick
Agreed on both counts.

Increasing the cost of stamps may help. However, if it gets too expensive, I'll pay my bills online.

13 posted on 08/05/2011 11:03:03 AM PDT by dhs12345
[ Post Reply | Private Reply | To 6 | View Replies]

To: ClearCase_guy
I think it was Olympia Snow cooked this one up. It's a payment in advance against Medical insurance costs for future retirees.

NOBODY DOES THIS ANYWHERE ELSE.

It's just another way to have the Postal Service subsidize the rest of the government.

The headline is deceptive ~ USPS is not asking for "help" ~ they are asking for the government to quick standing on their corporate neck and sucking all their money.

14 posted on 08/05/2011 11:05:11 AM PDT by muawiyah
[ Post Reply | Private Reply | To 2 | View Replies]

To: NautiNurse

It is one of the few constitutionally authorized functions of government.

I would eliminate SS and 40 other government agencies before eliminating the Post Office.


15 posted on 08/05/2011 11:06:08 AM PDT by listenhillary (2007 deficit 160 Billion, 2008 - 458 billion, 2009 -1.4 Trillion, 2010 - 1.6 Trillion)
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah

Didn’t the post office overpay into some retirement fund? I never heard what happened there.


16 posted on 08/05/2011 11:08:35 AM PDT by listenhillary (2007 deficit 160 Billion, 2008 - 458 billion, 2009 -1.4 Trillion, 2010 - 1.6 Trillion)
[ Post Reply | Private Reply | To 14 | View Replies]

To: brownsfan

And AIG!!!!!!


17 posted on 08/05/2011 11:08:56 AM PDT by org.whodat (What does the Republican party stand for////??? absolutely nothing.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: capydick

omg—I avoid the surly post office counter workers like the plague. Ordered my Reagan forever stamps online. Bought enough for a lifetime supply, since I only use stamps to send my annual tax return.


18 posted on 08/05/2011 11:12:38 AM PDT by NautiNurse (TSA Tit for Tat--Yukari Mihamae--thank you!)
[ Post Reply | Private Reply | To 12 | View Replies]

To: ClearCase_guy

People like my brother is the problem. The mail carriers had 2 blocks added on due to less mail and they all did a slowdown to save the job!

When my friend was a mail carrier he’d be done by 11:30 but paid a full day. And that was a few years ago when there was mail!


19 posted on 08/05/2011 11:13:42 AM PDT by GreaterSwiss
[ Post Reply | Private Reply | To 2 | View Replies]

To: NautiNurse

I remember when Zero was talking about how the National Health Care scheme he was proposing would not squeeze out private insurance companies. He compared the Postal Service to UPS and FedEx and smuggly claimed that THEY weren’t being squeezed out of business.

But the lazy and butt-kissing journalists failed to use that analogy and ask about how the USPS LOSES money every year and the taxpayers have to shoulder that burden as well.


20 posted on 08/05/2011 11:16:57 AM PDT by ThomasNast (2350)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse

the lying postal unions are advertising heavily on rush’s show.


21 posted on 08/05/2011 11:26:06 AM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse

In my area they have released a list of post offices that are up for “possible” closure. They all appear to be in heavily Democrat populated areas sure to generate large volumes of complaints to Washington.


22 posted on 08/05/2011 11:37:50 AM PDT by Buckeye McFrog
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse
3.1 Billion! Good gawd!

Calling Fedex!

Mike

23 posted on 08/05/2011 11:44:05 AM PDT by MichaelP (The ultimate result of shielding men from the effects of folly is to fill the world with fools ~HS)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse

The USPS should charge more for junk mail ads.


24 posted on 08/05/2011 11:47:29 AM PDT by Blado (Audemus jura nostra defendere)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse

Postal service employees I see get time off for sick time any time a bee farts upon them. Snow Shoe Thompson is reeling in his grave.


25 posted on 08/05/2011 11:53:25 AM PDT by vetvetdoug
[ Post Reply | Private Reply | To 1 | View Replies]

To: ClearCase_guy
She went ballistic on me -- "We are NOT the government! We are a private company! We receive no tax dollars!" I shrugged again and said, "Sure Lady. Whatever you say."

I had a minor complaint with the post office last week - very minor - and called their 800 number - the woman who answered spoke with a heavy accent and I couldn't understand her. I asked if she was in the United States... she said she was and I asked what State she was in. Her response? She said for 'Security' reasons, she couldn't tell me the name of the State. I started laughing - and said I would call back and talk to someone else.

That type paranoia doesn't exist outside government. The next person I called and spoke to was a normal person, helped me with the issue and laughed about the first woman...

I have NO desire to support the post office. Mail should be jobbed out to a company that knows how to deal with 'customers' - a concept the post office has yet to 'get'.

26 posted on 08/05/2011 11:53:38 AM PDT by GOPJ (This “wussification” of America is an on-going phenomenon.- freeper rokkitapps)
[ Post Reply | Private Reply | To 5 | View Replies]



Boop His Beak!

Let Free Republic fly like an eagle

Make a one-time donation
Or sign up to donate monthly

27 posted on 08/05/2011 11:55:06 AM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list.)
[ Post Reply | Private Reply | View Replies]

To: NautiNurse

This morning on CNN the USPS had an add that ended with, “How much does this cost the taxpayer? Nothing. The USPS does not get public funds.” (paraphrase)

Then they are asking congress for money. ROFL


28 posted on 08/05/2011 12:16:31 PM PDT by jdietz (God is great, beer is good and people are crazy, (which is why guns are necessary))
[ Post Reply | Private Reply | To 1 | View Replies]

To: NautiNurse

The USPS loses about 10k per employee per year.


29 posted on 08/05/2011 12:35:54 PM PDT by WackySam (Obama got Osama just like Nixon landed on the moon.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ClearCase_guy

” We are so screwed. “
///
naw. lots of Boehners supporters here say it’s no problem.
we didn’t need to cut now. (and we did our best with 1/3).

we can keep spending trillions by borrowing more money.
so what if the USPO loses 3 billion every 3 months.
so what if Fannie and Freddie lose billions each quarter
(with debt not even included in the Federal books!)

the important thing, is we have begun the dialogue about debt, and we will win in 2012, and fix it all in 2013...


30 posted on 08/05/2011 12:56:30 PM PDT by Elendur (It is incumbent on every generation to pay its own debts as it goes. - Thomas Jefferson)
[ Post Reply | Private Reply | To 2 | View Replies]

To: listenhillary

the problem isn’t the idea of a Post Office.
it’s the huge payroll and pension costs.

it’s the unionized workers who “negotiate” with people they give donations to. clear conflict of interest.

there’s lots of smart hardworking Americans who’d do those jobs as well or better, for half the money.


31 posted on 08/05/2011 12:59:51 PM PDT by Elendur (It is incumbent on every generation to pay its own debts as it goes. - Thomas Jefferson)
[ Post Reply | Private Reply | To 15 | View Replies]

To: capydick
"I dont think we need to eliminate the USPS (yet) but - if the total volume of mail is going down - (I know, call me stupid but) shouldnt the headcount supporting that volume also go down? Most of the stuff I get in the mail today is junk - maybe they should raise their prices on that stuff rather than the price of a stamp?"

No kidding! For every actual piece of mail I get, there are 5-10 pieces of junk. I used to send empty return envelopes back and try to get off mailing lists, but it takes too much time and generally doesn't work. So now I burn it in my trash barrel. No landfill for me. : )

32 posted on 08/05/2011 1:27:23 PM PDT by greatplains
[ Post Reply | Private Reply | To 6 | View Replies]

To: ClearCase_guy
They owe the government money? So, they want the government to give them money? So they can pay the government what they owe the government?

What are you some kind of right wing Tea Party nut?

33 posted on 08/05/2011 1:29:03 PM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: dhs12345
We still use the postal service and they do a decent job for us.

Consider yourself fortunate. We never see the same carrier two weeks in a row. I spend way too much time re-delivering errant mail placed in my mailbox.

34 posted on 08/05/2011 1:47:18 PM PDT by NautiNurse (TSA Tit for Tat--Yukari Mihamae--thank you!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: NautiNurse

Back around 1994, when a postage increase went into effect, our newspaper said all postal revenue went into the gov’t general found, then the gov’t would give the P.O. a budget, if the P.O. was able to operate within that budget it was said to make a profit, if it needed more money to operate it was said to loose money. The paper said that went into effect in 1968. I doubt if anything has changed.


35 posted on 08/05/2011 2:14:46 PM PDT by Waco (Nominate Palin or forget 2012 you lost)
[ Post Reply | Private Reply | To 4 | View Replies]

To: NautiNurse

Mail volume is in decline. Times are tough for everyone, so it may be a bad time to make drastic job cuts. But there are things we CAN do now, w/o job cuts.

- Why not start by ending Saturday delivery ? That would end the Saturday overtime pay.

- Why not end new hiring & let attrition shrink the workforce.

Where’s the long term plan to re-size the USPS ?

- Why not have a long term goal for mail delivery every other day (M W F one week, Tu Th the next week). Double the route sizes and end junk mail. These changes would allow 1/2 the work force to deliver our mail.


36 posted on 08/05/2011 2:21:52 PM PDT by fred42 ("Get your facts first, then you can distort 'em as much as you need." - Mark Twain)
[ Post Reply | Private Reply | To 1 | View Replies]

To: fred42
All good and reasonable ideas. How about bringing them up at the next meetings for the American Postal Workers Union, the Rural Letter Carriers Association and the National Association of Letter Carriers?

If you are healthy and unharmed following the meetings, report back to us how your suggestions were received.

37 posted on 08/05/2011 3:22:52 PM PDT by NautiNurse (TSA Tit for Tat--Yukari Mihamae--thank you!)
[ Post Reply | Private Reply | To 36 | View Replies]

To: NautiNurse

thought maybe it ought to be on congress’s agenda, since they always work in our best interest...


38 posted on 08/05/2011 3:41:03 PM PDT by fred42 ("Get your facts first, then you can distort 'em as much as you need." - Mark Twain)
[ Post Reply | Private Reply | To 37 | View Replies]

To: fred42
Let me start here: Mail volume is in decline because of the economy. Cure the economy, cure the Post office. As to the things you suggest:

- Why not start by ending Saturday delivery ? That would end the Saturday overtime pay.

Whoa! I'm making overtime for saturday? Who knew? Sure ain't on my paycheck. There are Rural Carrier Associates that carry mail on the weekends with no benefits, and NO OVERTIME. The only time we're authorized to get overtime is before Christmas when they make danged sure we don't.

Why not end new hiring & let attrition shrink the workforce.

Has been happening already. In my area, offices are being squeezed including mine. We consolidated the city walking routes and now they walk 15 to 17 miles per day. Hey, how about ending every other day of delivery? Okay, so NOW we're talking overtime. These guys usually can make it back in their alloted 8 hours or whatever, but if they take twice the mail volume.... overtime.

Double the route sizes and end junk mail: Hmm. That would put some rural routes over 250 miles per day. Ending junk mail is just an attack on free market businesses desperately trying to ADVERTISE THEIR BUSINESSES! You want to hurt businesses? How about tripling their costs to advertise?

One problem I have with Free Republic is how much people spew without thinking or knowing what is involved here. I see the Post Office as a Constitutionally valid service of the Federal Government, like I see the Military. We sell a service and products, though. Supposedly self-sustaining, but getting killed due to Obamanomics.

39 posted on 08/05/2011 4:00:02 PM PDT by Big Giant Head (Two years no AV, no viruses, computer runs great!)
[ Post Reply | Private Reply | To 36 | View Replies]

To: NautiNurse

Nobody is entitled to anything. There are no “entitlements” in the long run.


40 posted on 08/05/2011 4:02:06 PM PDT by ichabod1 (Nuts; A house divided against itself cannot stand.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: capydick

I think Netflix is carrying the whole USPS for now, and that will decline too as the streaming service continues to grow.

Hey, I know! Really, the USPS should be in charge of all email, and they should be allowed to charge a nickel per email for postage. Then they wouldn’t never have no mo problems.


41 posted on 08/05/2011 4:05:57 PM PDT by ichabod1 (Nuts; A house divided against itself cannot stand.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Buckeye McFrog

I live in Boone County WV. Of the 15 post offices, eight and slated for closure. Theyre mostly in areas where seniors who dont even know what the internet is, much less having paid their bills on line.

The Govt is going deliberately closed mouth as to what post offices for sure will be closed and when it will happen. I was told the other offices MIGHT be closing in the neight county..or may nor. An yes, even for this county, who alays go for pubblies in the past elections, ar


42 posted on 08/05/2011 4:09:55 PM PDT by Armedanddangerous
[ Post Reply | Private Reply | To 22 | View Replies]

To: fred42

Junk mail is the only thing keeping them afloat. And it’s been that way for 20 years.


43 posted on 08/05/2011 4:10:55 PM PDT by ichabod1 (Nuts; A house divided against itself cannot stand.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: ichabod1

You mean business advertisements?


44 posted on 08/05/2011 4:21:52 PM PDT by Big Giant Head (Two years no AV, no viruses, computer runs great!)
[ Post Reply | Private Reply | To 43 | View Replies]

To: Big Giant Head

1. Is Saturday overtime paid at other branches ? I’d heard it was.

2. 1st class mail volume is down due to the internet (email & the web). End junk mail and the total volume drops even after the recovery.

3. Every-other-day mail delivery would only be for mail recipients. Half the delivery routes would occur on one day, the other half on the next.

4. USPS mail delivery personnel wouldn’t have a longer route, they would just have two routes, alternating every day. Their route size each day wouldn’t change.

With 2, 3 & 4 above, only half the work force would be required.


45 posted on 08/05/2011 5:17:06 PM PDT by fred42 ("Get your facts first, then you can distort 'em as much as you need." - Mark Twain)
[ Post Reply | Private Reply | To 39 | View Replies]

To: NautiNurse

Cap the spening and cut the program.


46 posted on 08/05/2011 5:21:26 PM PDT by Salvation ("With God all things are possible." Matthew 19:26)
[ Post Reply | Private Reply | To 1 | View Replies]

To: listenhillary
Yeah, that's another $78 billion.

Geithner and his running dog lackeys are not interested in accounting for it.

47 posted on 08/05/2011 5:22:03 PM PDT by muawiyah
[ Post Reply | Private Reply | To 16 | View Replies]

To: NautiNurse

That is unfortunate. And you certainly have the right to complain.

If it doesn’t have a value, then it should be eliminated.


48 posted on 08/05/2011 5:23:53 PM PDT by dhs12345
[ Post Reply | Private Reply | To 34 | View Replies]

To: NautiNurse
Why is that laughable? You hold $78 billion on deposit from payments made for postal retirements ~ your boy Geithner took it to pay your bills.

The RATE PAYERS PAY POSTAGE. That's how USPS is financed. You as a TAX PAYER have no right to POSTAGE.

49 posted on 08/05/2011 5:24:27 PM PDT by muawiyah
[ Post Reply | Private Reply | To 4 | View Replies]

To: ThomasNast

Since USPS has not normally been in the practice of losing money every year (until Obama gave way the country to the Chicoms) they were not getting taxpayer support. They still aren’t.


50 posted on 08/05/2011 5:27:22 PM PDT by muawiyah
[ Post Reply | Private Reply | To 20 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-67 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson