The U.S. Postal Service owes a staggering $5.5 billion to the U.S. Treasury to cover retirement health care benefits for its employees when they retire.
Not that it matters. The Treasury is running a Ponzi scheme. It was not going to invest the money. It was going to cover existing obligations.
The Postal Service says it can’t pay and also stay solvent. So, it won’t pay.
The bureaucrats know that Congress will not foreclose. No one will shut it down. It does not have to pay. It’s just another IOU for the government’s Ponzi scheme operators.
The money has been due ever since last September. Ha, ha, ha.
It will owe an additional $5.6 billion on September 30. Ho, ho, ho.
Postal legislation passed by the U.S. Senate on April 25 would slow the schedule for those obligations. The House hasn’t acted on a different postal measure aimed at changes to help the service cope with declining mail volume.
“This has no effect on mail processing or delivery, no impact on post offices, and employees will continue to get paid,” Dave Partenheimer, a Postal Service spokesman, said today in a phone interview.
It will have no effect on the employees’ pensions, either. There won’t be any, one way or another. The Ponzi scheme is going to go belly-up, whether the USPS pays the money or not. It’s cheaper not to pay the money.
The USPS lost $3.2 billion in the first quarter.
It says it will be out of cash in October, unless Congress allows it to skip its health-care obligation.
Congress is prepared to take decisive action. It will kick the can.
“The service also wants to withdraw from the U.S. government employees’ health-care plan and set up its own.” Right. Since it can’t afford to pay into the government plan, it wants to set up its own plan, which it won’t pay into, either.
Congress can scream and whine, but so what? Unless it is prepared to shut down the system, Congress has no say in the matter. Congress knows this.
Congress has a plan: cut Saturday delivery. Maybe. Possibly.
The service, which receives no direct funding from U.S. taxpayers and is supposed to be self-sustaining, last made a quarterly profit in 2009 and has said it is losing $25 million a day from operations. It has forecast it will lose $9.1 billion in the 12 months ending Sept. 30, not including the $5.5 billion payment.
The USPS will simply raise mailing costs.It will cut services. No problem.
If Congress complains, so what?
Email is replacing 1st class mail. UPS and FedEx are replacing small package markets. The USPS has only 14% of this market — nothing worth worrying about. Junk mail is declining in volume.
The USPS wants to eliminate 222,000 jobs. I say, “Go for it!”
The letter carriers union is one of the last of the big unions in America. It is doomed. It has no clout.
The USPS is a dinosaur. No one really needs it any more. It has outlived its usefulness. It has been replaced. It is fit for junk mail and little else.