posted on Jul, 24 2013 @ 09:55 AM
reply to post by Kali74
I found a report that may help shed some light on this. It appears you're right on this and to a rather sickening extent for the way the pre-funding
is literally tearing the guts out of the USPS. It's a no win situation they cannot escape and cannot avoid. Yup... I'd say it was quite a set up to
fail, whatever other motives may have existed.
Although, it turns out, they already had billions in negative loss ..before pre-funding. Pre-funding just makes what COULD have been recoverable with
creative new planning and initiatives into an abyss from which there is no possible escape for them. The math is pure impossibility. 100% impossible.
I cap'ed a couple of the charts from the report to show what I mean...and thanks for the initial heads up on this! It's quite a thing to see in raw
numbers. Also, they deferred payment on their obligation for 2011, which is why it's a blank and the 2012 projection (At the time this was produced)
is doubled. Now of course, up to 14+ in negative.
First, their overall picture in the executive summary:
then a break down of what they actually generate and from what in terms of revenue.
Chart Source: USPS 2012 Integrated Financial Plan
Now according to that, their front load payments to retirement takes, by design, about 10% of their mail revenue. That's under normal conditions.
Obviously, they've been robbing Peter to pay Paul and deferred those payments, which is what makes it a bottomless pit now, IMO.
What a mess!
edit on 24-7-2013 by Wrabbit2000 because: (no reason given)