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

Skip to comments.

US Postal Service warns it could default
Yahoo.com ^ | 8/5/11 | AFP

Posted on 08/05/2011 6:03:09 PM PDT by GQuagmire

The US Postal Service warned on Friday that it could default on payments it owes the federal government, just days after the US government itself narrowly averted a default.

The government's mail service said it lost $3.1 billion in the period from April to June, blaming "the anemic state of the economy" and the growing popularity of electronic communications over old-fashioned letters.

As a result of its mounting losses, the US Postal Service said it would not be able to make a legally required $5.5 billion payment in September to a health-benefits trust fund.

"Absent substantial legislative change, the Postal Service will be forced to default on payments to the federal government," it said in a statement.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: default; mail; obama; obamanomics; postal; postalservice; usmail; usps
Navigation: use the links below to view more comments.
first 1-5051-71 next last
More Friday news dumping
1 posted on 08/05/2011 6:03:15 PM PDT by GQuagmire
[ Post Reply | Private Reply | View Replies]

To: GQuagmire

Yep. And they’ve known this was likely since spring.


2 posted on 08/05/2011 6:07:01 PM PDT by ArmstedFragg (hoaxy dopey changey)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

But nobody there will take a salary cut.


3 posted on 08/05/2011 6:07:01 PM PDT by Ciexyz
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

Stop Saturday delivery and lay some postal workers off. No.....just keep on doing what you’re doing...idiots!!


4 posted on 08/05/2011 6:07:37 PM PDT by Sacajaweau
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

Oh boy! Pass another debt ceiling increase or the postal service will go into default! (I just can’t be sarcastic enough!)


5 posted on 08/05/2011 6:07:37 PM PDT by Bushbacker1 (I miss President Bush greatly! Palin in 2012! 2012 - The End Of An Error! (Oathkeeper))
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

Cut them loose. Let it go.


6 posted on 08/05/2011 6:09:28 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

All kinds of good news today that we can blame Obama for. And who cares if the USPS defaults- maybe it’s about time that we let FedEX, UPS and other private businesses take over.


7 posted on 08/05/2011 6:10:11 PM PDT by conservaterian (Sarah/DeMint '12)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

The wouldn’t be in such a mess if they didn’t pay in excess of $40k a year for part-timers to work no more than 3 days a week...


8 posted on 08/05/2011 6:10:40 PM PDT by Keith in Iowa (Hope & Change - I'm out of hope, and change is all I have left every week | FR Class of 1998 |)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Ciexyz

A fifty percent cut in management and administrative staff would put them back in the black with a noticable improvement in efficiency and quality of service, but it’ll never happen.


9 posted on 08/05/2011 6:11:32 PM PDT by ArmstedFragg (hoaxy dopey changey)
[ Post Reply | Private Reply | To 3 | View Replies]

To: GQuagmire

i wonder if the horse-shoe industry took this long to die.

probably not. they weren’t ‘latched onto’ the public teet...they had families to feed.

fannie mae??? freddie mac???


10 posted on 08/05/2011 6:11:48 PM PDT by mreerm
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

So a federal government agency that is funded by taxpayer dollars can’t pay it’s debt to a federal government agency which is funded by taxpayer dollars which can’t pay it’s debt either.

Is it time yet?


11 posted on 08/05/2011 6:12:32 PM PDT by Nonsense Unlimited
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

one of the most successful unions threatens their host.

for four decades they’ve always hired recent immigrants over native americans.

i say privatize. run the usps as business, not one, but several competitors.

they lost the most profitable segment of their business to competitors—ups, fedex et al.


12 posted on 08/05/2011 6:12:57 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

If the postal service was run by democrats they
would want to raise the price of stamps for the
wealthyist 1% of the nation while offering free
delivery to the poorest.


13 posted on 08/05/2011 6:13:42 PM PDT by tet68 ( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

I have the answer on how to avoid Default. Spend more! I’ve learned that from our Lords in D.C. That brilliant tactic has kept our pure AAA credit rating....oh.


14 posted on 08/05/2011 6:16:48 PM PDT by Soul Seeker ( I was there when we had the numbers, but didn’t have the pThey may feel bettrinciples.---Jim DeMin)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire
Earlier thread: Post Office Warns of Default; Wants Help From Congress with lively discussion.
15 posted on 08/05/2011 6:18:14 PM PDT by NautiNurse (TSA Tit for Tat--Yukari Mihamae--thank you!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire
They can HOPE and ask Obummer for some CHANGE to bail them out.

Hows that hope and change working now?

16 posted on 08/05/2011 6:18:37 PM PDT by Keen-Minded
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

The Post Office, just like General Motors. Pension benefits that are choking the life out of both. GM has a chance, but the PO doesn’t. Shut it down, and parcel it out to Fed Ex and/or UPS if they want it. Bill paying is going electronic, and I don’t need the junk mail that fills my mailbox. I can honestly say that I have never bought anything as a result of a mailer, and the mailers are being delivered at less than the cost of delivery while they kite the first class mail to try and break even.


17 posted on 08/05/2011 6:22:09 PM PDT by vette6387 (Enough Already!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GeronL
Cut them loose. Let it go.

Sadly, a Postal Service is mandated in the Constitution.

18 posted on 08/05/2011 6:27:37 PM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
[ Post Reply | Private Reply | To 6 | View Replies]

To: vette6387

Correct. I won’t do business with any company I don’t have to (sadly, my electric company is still in the stone ages) that does not e-bill and collect e-payments.

I check my mail every 2 weeks. 99.9% junk mail. The other .01% is the electric company and cards (2 or 3 times a year) from the out of town 80+ year old family members.


19 posted on 08/05/2011 6:29:32 PM PDT by cableguymn
[ Post Reply | Private Reply | To 17 | View Replies]

To: GQuagmire

Remember, this is were all the people who left Viet Nam after its down fall in the early 70’s went to work. The US government premised them jobs.


20 posted on 08/05/2011 6:32:26 PM PDT by Calif4Palin (President Palin sounds so good....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Don Corleone

It doesn’t say how big and expensive it has to be does it?

An email saying “Your letter is at the post office in town, come and get it” would be perfectly acceptable.


21 posted on 08/05/2011 6:33:29 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
[ Post Reply | Private Reply | To 18 | View Replies]

To: Bushbacker1

Give more money to teachers or your kids will be stupid
Pay firefighters more or your house will burn down
Give pols more money or the Country will fall apart

We the people can no longer afford public servants. The state will have to find something else to do with the vast army of incompetent boobs they own


22 posted on 08/05/2011 6:34:45 PM PDT by winodog
[ Post Reply | Private Reply | To 5 | View Replies]

To: Don Corleone
A postal service is NOT mandated by the Constitution. The Constitution grants the federal government the power to operate a postal service if it so chooses; it does not mandate the USPS' existence.

Article 1, Section 8 begins by stating "The Congress shall have the power to…" and continues in Clause 7 with "To establish Post Offices and post Roads". It does not say "The Congress shall" or "The Congress must". It simply states "The Congress shall have the power to…".

That said, I think the USPS is irreplaceable at this point in time. FedEx and UPS are more about business freight at very large scales. They don't have the operations to perform six day a week home-to-home delivery, and I doubt very much they want to be in that business.
23 posted on 08/05/2011 6:43:56 PM PDT by Terpfen (Buh-bye, Suntan Charlie.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: GQuagmire

Paying letter carriers or counter people 90K just doesn’t add up.

Pray for America


24 posted on 08/05/2011 6:44:41 PM PDT by bray (Hey Country Club, your turn to hold your nose!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Don Corleone

Actually it says the congress shall have the power to establish post offices and post roads. It doesn’t require that they exercise that power. In addition it doesn’t require door to door delivery. The interstates are in my mind post roads, but the offices are not required to door to door service.


25 posted on 08/05/2011 6:53:42 PM PDT by reed13
[ Post Reply | Private Reply | To 18 | View Replies]

To: GeronL

>Cut them loose. Let it go.<

Half-agree...

I personally know buds who own Ebay accounts as power sellers and the USPS international rates for their USPS Express and Priority Mail are at least 60% cheaper than Fedex and UPS, believe it or not. IF you knew the Fedex and UPS rates for international, you will know it’s highway robbery. There are things that USPS is good at..mostly nothing but some of their services are beneficial for small biz.


26 posted on 08/05/2011 7:21:44 PM PDT by max americana (FUBO NATION 2012 FK BARAK)
[ Post Reply | Private Reply | To 6 | View Replies]

To: GQuagmire

One more reminder: the postal service is authorized by the Constitution.

Is the EPA, Depts. of (mis)Education, Energy, HUD, and so on?

USPS brings in revenue. Do any of the others?


27 posted on 08/05/2011 7:24:01 PM PDT by Revolting cat! (Let us prey!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Terpfen

The dirty little secret of the delivery business is that no one can deliver the last mile as cheaply as the USPS because it is so heavily subsidized/underpriced at that price point.

If time isn’t a factor, you can’t beat the USPS on price.


28 posted on 08/05/2011 7:44:26 PM PDT by GEC (We're not drilling in ANWR because....)
[ Post Reply | Private Reply | To 23 | View Replies]

To: GQuagmire

You would think people on FR would be more knowledgeable about the USPS. Or at least do some simple research before posting. The ignorance is astounding. But, the USPS is more visible than 99% of what most freepers do for a living. Too bad we can’t critique what everyone else does for a living. Anyone want to start? Teachers? Farmers? Anyone?


29 posted on 08/05/2011 7:47:16 PM PDT by ltrman61
[ Post Reply | Private Reply | To 1 | View Replies]

To: Don Corleone

Sadly, a Postal Service is mandated in the Constitution.


Oh dear, no.

It is PERMITTED. Congress is given the power “To establish Post Offices and post Roads.”


30 posted on 08/05/2011 7:55:58 PM PDT by Atlas Sneezed (Government borrowing is Taxation without Representation)
[ Post Reply | Private Reply | To 18 | View Replies]

To: GQuagmire

The other day I saw an ad by the Letter Carriers Union (or some similar crap union) that said the USPS was paid for completely by stamps. Would the Post Office people lie to the public? Shocked ... yes I’m shocked. Next I won’t be able to trust the spewings of the Federal Reserve, or EPA, or Congress.


31 posted on 08/05/2011 8:08:44 PM PDT by RetiredTexasVet (There's a pill for just about everything ... except stupid!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ltrman61

Do you know any of us overpaid, underworked worthless carriers and window clerks who make 90k a year? And I sure don’t know any 3-day-a-weekers, whomever that might be, making 40k. I have 24 years with the only company that sends their letter across the country for 44 cents. How about you?
People hear what they want to hear. How many years has the Postal Service been telling the public that we are self-supporting and do not use “their” taxes. Quit making us prepay the healthcare for retirees and give us back our overpayment. Let us make a decision without having to go to Congress for permission to blow our nose, since we know how well they run the country.


32 posted on 08/05/2011 8:10:30 PM PDT by mom aka the evil dictator
[ Post Reply | Private Reply | To 29 | View Replies]

To: RetiredTexasVet

Maybe you ought to do a little research. The Postal Service is paid for completely by our sales. The only government agency that is not getting taxpayer dollars. Quit making us prepay retiree healthcare (which Congress makes no other agency do) and give us back our overpayment into pension plans and we could be ok.
And why must we run an office in every little 4 man town so all the locals can catch up on their gossip? We are a business, not a charity!


33 posted on 08/05/2011 8:14:53 PM PDT by mom aka the evil dictator
[ Post Reply | Private Reply | To 31 | View Replies]

To: GQuagmire

The USPS could charge first class rates for junk mail. That would cut the amount of junk mail, and cut the corruption that permits junk mail to saturate the system.


34 posted on 08/05/2011 8:23:16 PM PDT by meadsjn (Sarah 2012, or sooner)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

Well thank god we raised the debt ceiling so we can bail them out. :)


35 posted on 08/05/2011 8:55:40 PM PDT by Tzimisce (Never forget that the American Revolution began when the British tried to disarm the colonists.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: mom aka the evil dictator

Bravo!


36 posted on 08/05/2011 9:13:52 PM PDT by Former War Criminal (...and proud Hobbit.)
[ Post Reply | Private Reply | To 32 | View Replies]

To: tet68
If the postal service was run by democrats they would want to raise the price of stamps for the wealthyist 1% of the nation while offering free delivery to the poorest.

The democrats would also want to charge for emails, like one of the Postmaster Generals was mulling over a few years ago... Gore ropes us in with the internet, and the Demonrats clean up once again. On the other hand, if the Post Office mail carriers go away, all dogs will have to bite someone else...

37 posted on 08/05/2011 9:56:14 PM PDT by FDNYRHEROES (It's 3 AM. Let me sleep on it. I'll get back to you in 16 hours.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: GQuagmire

Well, actually, I think I could do without the Post Office and never know the difference. Cut it to two days a week, just like garbage pickup.


38 posted on 08/05/2011 10:02:18 PM PDT by Theodore R.
[ Post Reply | Private Reply | To 1 | View Replies]

To: Nonsense Unlimited

It hasn’t been funded by taxes since Nixon’s administration. Evidently your memo to that effect got lost in the mail.


39 posted on 08/05/2011 10:07:15 PM PDT by Pelham (Obama, the vanguard of the proletariat since 2008)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Sacajaweau

>> Stop Saturday delivery and lay some postal workers off.

I agree. Also cut managers’ salaries.


40 posted on 08/05/2011 10:09:10 PM PDT by Gene Eric (May our dreams converge for a free and prosperous nation.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: ltrman61

It is a window into just how much seat of the pants posting gets done here.


41 posted on 08/05/2011 10:10:41 PM PDT by Pelham (Obama, the vanguard of the proletariat since 2008)
[ Post Reply | Private Reply | To 29 | View Replies]

To: GQuagmire

The end to snail mail is coming soon.


42 posted on 08/05/2011 11:24:41 PM PDT by eaglestar
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

BTW if you can’t lift an 80-100 pound box or you move too slowly, you should not be working at the post office.


43 posted on 08/05/2011 11:45:16 PM PDT by eaglestar
[ Post Reply | Private Reply | To 1 | View Replies]

To: GQuagmire

Everyone needs to become familiar with Einstein’s definition of insanity, especially the USPS and Fannie Mae and Freddie Mac, as well as this entire idiot-ridden administration. =.=


44 posted on 08/06/2011 3:56:25 AM PDT by cranked
[ Post Reply | Private Reply | To 1 | View Replies]

To: eaglestar
I can't remember the exact time or place, but didn't bho try to use the USPS as an example of how the government could run something successfully amidst competition from the private sector (UPS, Fedex) ? I think it was during a Q&A about obamacare and how competitive the government could be against private insurers. Anyone remember this?
45 posted on 08/06/2011 5:40:54 AM PDT by centermass_socrates
[ Post Reply | Private Reply | To 42 | View Replies]

To: mom aka the evil dictator
Maybe you ought to do a little research Naaa, it's easier to just agree with everyone else. (sarcasm off)

I applaud you and agree with everything you wrote. We also have to accept blame for some of the USPS financial woes because WE choose to pay our bills on-line instead of spending the HUGE sum of 44 cents for a stamp. Saying that it's cheaper to pay on-line is a load of crap. It's more convenient is all. We can help the USPS get back on it's feet by choosing to mail in our bills instead of paying on line. I know I'm only a gang of one but STARTING TODAY MY BILLS WILL BE MAILED IN.

46 posted on 08/06/2011 11:00:40 AM PDT by Bad~Rodeo (Don't overthink common sense)
[ Post Reply | Private Reply | To 33 | View Replies]

To: GQuagmire

They’re supposed to be self supporting. Guess they finally figured out you have to bring in more than you hand out in bloated salaries to people who won’t work and pensions to stay afloat.


47 posted on 08/06/2011 11:18:39 AM PDT by Terry Mross (I'll only vote for a SECOND party.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: vette6387

Every now and then I write “Return To Sender” on the junk mail and send it back.


48 posted on 08/06/2011 11:21:07 AM PDT by Terry Mross (I'll only vote for a SECOND party.)
[ Post Reply | Private Reply | To 17 | View Replies]

To: GeronL

In the 1800s the local news paper would print the names of those who had mail at the post office. There’s one in the Shelbyville, Tn paper that names David Crockett. At the time he was on his way to Texas. Ne never picked up the letter though his family may have.


49 posted on 08/06/2011 11:23:25 AM PDT by Terry Mross (I'll only vote for a SECOND party.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Bad~Rodeo

Here’s an idea! Make a law requiring everyone pay 45 cents to pay a bill online. That should run everyone back to the post office! Well, it may have to be a dollar per payment but whatever the government wants to make me do is fine with me. sarc


50 posted on 08/06/2011 11:29:20 AM PDT by Terry Mross (I'll only vote for a SECOND party.)
[ Post Reply | Private Reply | To 46 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-71 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