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Post Office’s Check Won’t Be in the Mail

Written by Gary North on August 1, 2012

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.

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9 thoughts on “Post Office’s Check Won’t Be in the Mail

  1. It's crunch time! Time to cut back. Do we need a Sat. delivery? Or even Tuesday? I had a mailman, ring my doorbell, hand me a quarter and asked me to make him a copy of an article that was in MY magazine! I visited a friend of mine (about 6 blocks from me). She has cluster mailboxes. The mailman pulled up. About 45 minutes later he was still there. We saw him slumped over his steering wheel. We we to check…. He woke up and calmly said, I havent gotten the mail out yet. It will be ready soon! These 2 incidents were in a 6 block radius! They have too many employees if they have time to read magazines and nap!

  2. Bottom line, let's cut through the chase, sell this "company" and let private enterprise take it over. It takes someone who KNOWS how to run a business make it successful. Get the government out of doing what they do the worst….

  3. Only in a government run business would the failure to pay a debt be ignored. Too big to fail or too sacred to fail amounts to the same thing. No only does the government waste money by spending but now we see they waste it by not collecting what they have loaned out. Bankruptcy ignored is a demonstration of the attempt to fake reality the power lusters think they can get away with. The books can only be cooked so long before the reality of dishonesty destroys all semblance accounting and truth.

  4. The post office is such a simple fix and stile remain in tact and releavent well into the future. Rising gas costs and low postage is dooming this business. If it did not have to answer to congress it would be making profits already. The fix… Ask yourself 1 question. Does the garbage man come to your house everyday? Nope. Yet it is still profitable. If you cut daily delivery to 2 or 3 days a week dependent upon daily volume with rotating schedules then you can cut 40% of the current carriers. Larger stockpiles of mail make logistics more efficient. Letter carriers do not run the same route everyday. They run my neighborhood today, your tomorrow and someone elses on Wednesday then back to me. Older less efficient carriers go inside and presort, consolidate or other non physical stress jobs. Congratulations, I just saved thousand of jobs while keeping the USPS relevant.

  5. Hate to break it to you but…..some of use DO depend on the mail for such things as bills and packages. I have
    no desire to do direct deposit for instance. There a many very good reasons that many of us demand we get
    bills and, especially paychecks this way for privacy reasons. There are very good reasons why we have the
    post office but what folks like me are seeing is that it is being intentionally destroyed.

  6. The PO also pays out approximately $500 million in executive and other bonuses at the end of every year. That's a good place to start cutting too, especially considering their performance.

  7. chiliboots says:

    This alleged 'debt' was to pay for 'employees' who have not been hired.

    Good plan.

  8. exemp2012 says:

    Bribe taking and corruption is still wide spread at the post office. The postal inspectors won't do thier job and clean up thier act and prosecute post masters. It's about time congress cleans them all out. As a former post office and UPS employee I know why the post office is 5.5 Billion dollars in the red and UPS is running billions in profits.

  9. mikeylikesit says:

    No one is going to touch this hot potato. Tell you what you can do though … I started working for USPS about 9 years ago. Did you know this which is stated daily to all employees and drilled into our heads – do not pick up the money (change) that has fallen on the floors or counters, DONT EVEN TOUCH IT. If it is in your way, work around it BUT DONT TOUCH IT. They cant even sweep it up. Someone should go in and collect all this darn change laying around in all the post offices. I bet you would be surprised on what they collect.