Post office nears historic default on $5B payment

Discussion in 'Economy' started by Nova78, Jul 31, 2012.

  1. Nova78
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    Nova78 Silver Member

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    Post office nears historic default on $5B payment | US National Headlines | Comcast

    The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury, adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.

    With cash running perilously low, two legally required payments for future postal retirees' health benefits — $5.5 billion due Wednesday, and another $5.6 billion due in September — will be left unpaid, the mail agency said Monday. Postal officials said they also are studying whether they may need to delay other obligations. In the coming months, a $1.5 billion payment is due to the Labor Department for workers compensation, which for now it expects to make, as well as millions in interest payments to the Treasury.



    I am sure SuperObama will come to the rescue and shit some money out of thin air...

    $Barack_Obama_with_Superman.jpg
     
  2. waltky
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    waltky Wise ol' monkey Supporting Member

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    Sounds like postage stamps gettin' ready to go up again...
    :eek:
    U.S. Postal Service nears historic default on $5B payment
    7/30/12 : WASHINGTON — The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury, adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.
     
  3. Politico
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    Politico Gold Member

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    They near a default every year. It's called budget time.
     
  4. RoadVirus
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    RoadVirus <insert pithy title here>

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    The Postal Service needs to be completely gutted from the inside out and rebuilt from scratch.

    But as long as we have Dumbos in charge of the Senate and the White House, that'll never happen because it'll effect their precious union supporters.
     
  5. Mr. H.
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    Mr. H. Diamond Member

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    Some blame has to lie with Congress and it's 16% approval rating.

    The Postal Service is seeking new leeway from Congress to eliminate Saturday mail delivery and reduce health and other labor costs. The Senate last month passed a bill that would give the agency an $11 billion cash infusion while delaying a move to five-day delivery for two years; the House remains stalled over a separate bill allowing for aggressive cuts.

    Postal Service reports heavy loss, blames Congress for failing to adopt reforms : Memphis Commercial Appeal
     
  6. Moonglow
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    Moonglow Diamond Member

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    Always with the death riders and amendments.
     
  7. Ariux
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    Ariux BANNED

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    Considering that Saturday deliveries have't been cut out years ago, the Post Office isn't trying very hard to cut costs. Also, cut salaries. They could easily keep the Post Office fully staffed with people willing to work for half as much as workers are paid now.
     
  8. Mr. H.
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    Mr. H. Diamond Member

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    Tell that to the APWU.
     
  9. HenryBHough
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    HenryBHough Gold Member Supporting Member

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    We're talking about a regime that would think people might stock up on stamps when the USPS has a going out of business sale. But they may be right; every liberal out there can spend at least 90-cents in a single day. Especially on welfare check day.
     
  10. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    without capitalist competition you don't even know what it means to cut costs or make your product better. Before the iron curtain fell Hungarian cars were made with dipsticks to check gas (not oil) levels.
     

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