Skip to comments.US Postal Service warns it could default
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 ...
Yep. And they’ve known this was likely since spring.
But nobody there will take a salary cut.
Stop Saturday delivery and lay some postal workers off. No.....just keep on doing what you’re doing...idiots!!
Oh boy! Pass another debt ceiling increase or the postal service will go into default! (I just can’t be sarcastic enough!)
Cut them loose. Let it go.
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.
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...
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.
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???
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?
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.
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.
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.
Hows that hope and change working now?
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.
Sadly, a Postal Service is mandated in the Constitution.
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.
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.
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.
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
Paying letter carriers or counter people 90K just doesn’t add up.
Pray for America
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.
>Cut them loose. Let it go.<
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.
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?
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.
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?
Sadly, a Postal Service is mandated in the Constitution.
It is PERMITTED. Congress is given the power “To establish Post Offices and post Roads.”
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.
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.
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!
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.
Well thank god we raised the debt ceiling so we can bail them out. :)
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...
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.
It hasn’t been funded by taxes since Nixon’s administration. Evidently your memo to that effect got lost in the mail.
>> Stop Saturday delivery and lay some postal workers off.
I agree. Also cut managers’ salaries.
It is a window into just how much seat of the pants posting gets done here.
The end to snail mail is coming soon.
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.
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. =.=
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.
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.
Every now and then I write “Return To Sender” on the junk mail and send it back.
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.
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