USPS to default on $5.5 billion on pensions by the end of the month

This shall be interesting.

Postal blues

The US Postal Service is so deeply in debt that it could default on a $5.5 billion payment for retiree benefits by month’s end.

The biggest burden: health-care benefits for retirees. Adjusted for inflation, health-care costs have soared 448 percent since 1972. Back then, benefits were only 8 percent of the USPS’ operating expenses -- but by last year they were 30 percent.

The result: The USPS lost $2.8 billion in 2008, $3.7 billion in 2009, $8.3 billion last year, and it’s $8.5 billion in the red this year.

So the USPS is asking Congress for permission to cut 120,000 employees, shed another 100,000 through attrition and fix its failing health-care system to remain afloat.

Another bailout is coming. Or you know, LET IT FAIL.

Let it fail, sorry but that's my gut instinct, we really don't need it anymore, just like any other job that computers or the internet have taken over. I love technology, but it's really kicking us in the butt at the same time! Either that or we can ship our mail oversees and let them process it and then send it back to us. That seems par for the course in this day and age...........everything oversees.

I was reading this article earlier today....


US Postal Service Nears Extinction

The United States Postal Service, the U.S.' Most Trusted Government Agency for six consecutive years, is nearing closure due to lack of cash, a clear signal that the traditional mail service has been taken over by the Internet revolution.

The Postal Service is due to make payment amounting to $5.5 billion this September and unless there is Congressional action to help address its dire financial situation, it may be forced to close shop.

“Our situation is extremely serious. If Congress doesn’t act, we will default”, USPS postmaster general, Patrick R. Donahoe told the New York Times in an interview.

The New York Times reports the Postal Service may run out of funds early next year, which could have an impact on the agency's ability to deliver around three billion mail weekly.

In a statement posted on its website in August, the Postal Service said it will be insolvent this month due to significant declines in First-Class Mail volume, the effects of a Congressional mandate to prefund retiree health benefits and increases in network costs, wages and benefits.

It's a lot of job losses just from this one government agency.

Well, if they do default, don't take your mail in to the Post Office anytime soon. It could be the gunfight at the OK Corral in there.

The governments, including states, like California, are broke and no matter how many riots and cain they raise in the streets, nothing is going to change that. I can't afford my own retirement much less keep bailing out the fools like banks and governments that spent the money. And even then, Obama and Co keep sending jobs and billions overseas. I dont see any hope in the US right now except the hope you make yourself!

USPS is going the same way as the local photoshop and the phone booth/ pay phone...

Being a quasi- government operation has handicapped the Postal Service... no innovation and a bloated payroll.

Look at the difference between a UPS delivery person and a USPS worker.... UPS guy is hustling and wet from sweat, and driving the hell out of that truck...USPS workers are great, but they work on their own terms.

The USPS will continue to decline in usefulness and necessity as time goes on...and they are swallowed by the benefits aggreements they made decades ago.

If the US Govt was smart, they would sell off the USPS to UPS or FedEx.

Why do we need the USPS?

They are outdated, too expensive, too slow, full to the brim with less than intelligent useless eaters, not competitive, I could go on for days....

They are another useless black hole in out budget, like the FED, IRS, etc....

I havent mailed a letter in years. my postal delivery lady just recently begged me to mail letters so she wont lose her job.....Sounds liberal, and socialist...Begging me to support her to keep her job.

I told her to learn a viable trade and get a job that was necessary, and that I will not support the USPS out of guilt.
Then I went inside and responded to 300 emails, scheduled FED ex to pick up a package, and marketed my business to 25,000 addresses un my city without spending one penny.....

Because i excercised my right to use free enterprise system in the country, and choose private solvent copanies to do my mailing, and too advantage of competition in the market place.

The GOVERNMENT HAS NEVER DONE A THING TO BENEFIT ME!!!!

reply to post by MentalGiant


Well with your attitude I hope people exercise their free enterprising rights and not buy anything from your business either.

Fubar

I work for the usps as a substitute carrier; mainly saturdays and as needed for the past 5 years. The tension we feel everyday at work is approaching the surreal. Used to be the talk of doing away with saturday delivery. Now the talk is being reduced to a couple days a week beginning next year. I've long felt the possibility of retiring was not a realistic proposition for me and is being confirmed with each passing day. :-).

The final nail in the coffin is watching how inept congress is in reaching any comprehensive long-range solutions to problems. The debt ceiling debacle definitely comes to mind. I imagine this month when they (snicker) go back to work that I'll get my pink slip in the mail before the month is out. Which is fine; don't need to be a rocket scientist to see this coming.

I feel for those who put their full faith and trust in their elected officials to do what is right. Or at least what was promised them. Interesting times. Finally, I fully expect that some of privatization will occur and people will have to re-apply for their current position at less than half their current pay rate. And that's just for starters.

A few people may flip out but no worse than the rest of the economy as it continues its downward spiral. The minds that are prepared and flexible will be affected less. Time is swiftly running out for those yet to wake up and see what is happening to the world around them. Maybe its time to stop watching american idol/dancing with the stars and start doing some critical thinking. /rant off

reply to post by surrealist



Sorry for you. This has not happened yet. And it wont happen, because of competition. Im an sorry you will never understand the concept of free enterprise, and that is why you have ill wishes to my business. Your mindset seems to be one of someone who is negative in life because yours sucks.

I will never support you or anyone else that thinks I should ber guilted into keeping a dinosaur alive regardless on the economic impact on everyone else. You can pay their bill. I will not. You probably dont have the money either. I have never met ANYONE who has honestly busted their ass in business and has a liberal socialist mindset.

Usually it is the broke sad ones in the discounted internet service that I subsidize, that do not understand why I dont support charity to the government.

Originally posted by MentalGiant

The GOVERNMENT HAS NEVER DONE A THING TO BENEFIT ME!!!!

I take it you never went to school and have never driven on a road then.

Such an ironic user name.

reply to post by Cowgirlstraitup7


We do need the USPS .. if we didn't have it, private companies would charge outrageous amounts of money just to send a letter.. it would actually hurt small businesses more than anyone. And beside that, the USPS delivers nearly EVERYWHERE .. whereas private corps do not. Fedex for example may drive one truck out to a rural town once every two weeks. But the USPS will always deliver every day.

What needs to be removed is the inflation of healthcare costs .. imo, the easiest course is outlaw Health Insurance.

reply to post by MentalGiant


well, I dont know how it is in the USA, but here in canada the postal service went on strike for a month, and i HAD to mail a package right away. The package was a small, lightweight product that i make here and have mailed dozens of times. Canada post sends it canada/usa for $1.85. With canada post on strike, I decided my only option was UPS. They charged me $32. I was aghast, to say the least. So while I think that the postal service is rapidly being outsourced to the more electronic means, I seriously hope they do not fall until a more cost effective way of shipping has arrived. You just cant email some things you know.

reply to post by Flyer


No, I did not receive a public education, I even received a Private College Education. Your lack of understanding on how things work is so low, you cannot comprehend anything about my user name. The fact you do not understand it, is fitting. You seem to be ther one with a Government Education.

Your user name "Flyer" is fitting for you, because you seem to fly over topics, without divig down to really look into them.

I am done wasting my mental energy with you. that is why I own a business, add to the economy, build my community, create jobs, and you do not. You could never understand what it takes.

reply to post by chrissiel123


Here in America we have Fed EX, UPS, and more. We have many provite copoanies who do everything the USPS does and more. Yes, you are correct, you do not understand how it works, If canada had a better free enterprise system, you would have had more optios than your precious Canada Mail.

I physically mail packages all the time. It has been years since I walked into a post office, and all my mailbox is used for is to remind me why all the trees are gone.

Sell the USPS. Privatize it. Open it up to competition. It might lower costs, keep the workers, and improve service.

Oneless thing the government (our taxes) has to pay for.

reply to post by Rockpuck



Yea...That will fix everything....Good to know your here, adding the intelligent argument to every side.

I keep seeing people claiming they don't need the post office, but it sure is busy every time I go there. Just because some people don't use the post office doesn't mean they represent the majority of people.

A large number of people still receive and pay their bills through the post office. You might say, just pay it electronically, but many don't have internet access due to location or finances to make one time payments. Add to that the refusal of many to use auto draft/debit due to not trusting companies to draft/debit only the correct amount or even to stop drafting/debiting once you end their service. You can't even pay many bills including some utilities in person anymore due to the lack of local offices.

Just wait until people find out they can't get their Netflix DVDs due to the post office closing. I can't even imagine the outrage if they close before Christmas. I doubt people will be happy about paying $7 through UPS to send a Christmas card.

there is still a large part of the population that don't have internet access....
how many times have you seen a conservative come back on someone complaining how their income doesn't meet their financials needs and condemn them for being on the internet????
can't have it both ways ya know, either the "poor" are using their money unwisely if they have internet access, and thus need the post office to mail in the bill payments, or well, we are all so rich, we have the internet!!!

it's the healthcare system that's killing us!!! no one can afford it!! add to that, many of the pensions plans got burned by the real estate scam, some of the insurance companies did also.....
well, I think most of us can forget about retirement!!!

no, we don't need a post office, the rich need their tax breaks!!! since they're TOO BIG TO FAIL!!!
okay, but.....
I am getting too small to care!! whatcha gonna do when I refuse to spend three times as much to send my payment in to you???
foreclose on my home??? the too big to fails were too dumb to realize that without the note, they have no collateral for the loan!!

Originally posted by AlreadyGone
If the US Govt was smart, they would sell off the USPS to UPS or FedEx.

If those two were smart, they wouldn't bother with USPS.

The USPS is something that is doomed to fail no matter what... Technology will see to it. As everything becomes wireless ( Email, online bill pay, direct deposit etc...) there will be less and less need for the USPS.

Sure there are always packages that need to be delivered.... But that is what Fed Ex and UPS are for.

Both of whom, will be around long after the USPS.