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Postal Service on the Verge of Default


US Politics & Gov't  (tags: USPS, postal service, government, congress, spending, business, news )

Cal
- 812 days ago - money.cnn.com
Without help from Congress, the U.S. Postal Service is likely to default on a big bill due Wednesday to the federal government -- $5.5 billion to prepay health care benefits for retirees.



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Comments

Kit B. (276)
Tuesday July 31, 2012, 8:14 pm

This should be reported as Congress on the verge of destroying the Postal Service.
This is the idea though, destroy the Postal Service and give it all up to private companies. Destroy the educational system so it too can be privatized.
 

pam w. (191)
Tuesday July 31, 2012, 8:25 pm
Kit...don't forget to privatize prisons and roads and SOCIAL SECURITY!
 

Alexandra Rodda (177)
Wednesday August 1, 2012, 3:26 am
Yes, divide and conquer, then let people pay for the damage. Costs will increase.
 

Janelle Wong (71)
Wednesday August 1, 2012, 5:51 am
Sure it's all a great big conspiracy. Report to who, fellow conspiracy theorists? Something must be missing in your lives.
 

NicoleAWAY W. (634)
Wednesday August 1, 2012, 6:50 am
:-(
 

pam w. (191)
Wednesday August 1, 2012, 8:01 am
BUT--considering how rarely we use the postal service these days (99% of my mail is "junk") the USPS needs to take a long, hard look at how they'll fit in the future.
 

Sally M. (72)
Wednesday August 1, 2012, 10:18 am
No other company or agency is required to pre-pay health benefits for retirees. The post office has been a good government run agency that I feel is efficient, accountable, and cheap! Try mailing something from another country (Canada excepted) and you will see how slow and outrageously expensive it will be. Our postal system is admired around the world...why is the government saddling them with this ridiculous mandate in the first place?
Oh yes, privatizing is the watchword now.....there are people in the government who want their buddies to have a super lucrative mail business....and already have plans in place to do so--from what I've heard...rumor it is, but from good sources.
Our schools, our libraries, our post offices, our trains and other transportation systems, our food---(agriculture/Monsanto/GM now) our water supplies, parks...... and what is left of the old and REAL America? What did our small towns build in order to become real towns and have amenities? Schools, post offices, libraries, trains, roads, water systems, national parks.....they are all going or have gone, corporate. Do you have faith in corporations whose focus is on profit/money/status/power? I don't.
These public institutions made us who we are today.......................and now Congress wants to do away with, sell off, and privatize the very infrastructures that made us a great country?
When repub.'s are in the decision seat...look out!
 

Dave C. (216)
Wednesday August 1, 2012, 12:06 pm
thanks.....
 

Veronica C. (43)
Wednesday August 1, 2012, 12:07 pm
Another victim of the internet.
 

Christeen Anderson (513)
Wednesday August 1, 2012, 12:13 pm
I hate this. I am a mail fanatic. Please support your local post office.
 

Marlene Dinkins (235)
Wednesday August 1, 2012, 12:40 pm
noted thnx
 

Virginia Esquer (8)
Wednesday August 1, 2012, 1:43 pm
noted
 

Elle B. (82)
Wednesday August 1, 2012, 1:45 pm
The U.S. Postal Service goes. . .so does the democracy. It is the last means of truly private correspondence .[unless you have and exceptional courier pigeon]...and the only construct that literally goes to every address. It is a built in emergency network as well.

CALL [it takes just a few minutes] to back up emails, letters and petitions [i'm on the West coast so i take advantage of the time zone and start calls back east a little after 5am.] Imagine if all the governments across the nation hear live voices en masse. . .

White House: (202) 456-1111
Congressional Switchboard: (202) 224-3121
www.usa.gov [contact info/links--for ALL government departments and agencies, officials]

Call about the U.S. Postal Service Vote. WE need to repeal the deceptive "Starve the Beast" 2006 legislation black light agenda item requiring 75 years of prepaid retiree benefits within a ten year window. This one was easy to figure. . .the pathological "private_ly" concealed cohorts want those who have worked for the USPS to completely fund their own retirement before the "Privateering Hoarders" shut them down and they plan on doing it within ten years from the date of the bill passed. . .period. that's just SOP. The greed and power monger captains all think they are very clever. . .they are NOT. . .the population just doesn't pay attention because they are too busy supporting their lives of convenient comfort in a what is anything but a FREE marketplace...and a very lethal existence.

"Watch the little things; a small leak will sink a great ship." ―Benjamin Franklin

"When ideology is involved, truth is the first casualty." ―Tim Callanan

"When dogma enters the brain, all intellectual activity ceases." ―Robert Anton Wilson

“The most effective way to destroy people is to deny and obliterate their own understanding of their history.” ― George Orwell
 

Rosie Lopez (73)
Wednesday August 1, 2012, 2:26 pm
thanks for sharing
 

Jim Phillips (3209)
Wednesday August 1, 2012, 4:42 pm
Post office

Congressional Republicans have consistently pushed to downsize USPS. In 2011, Rep. Darrell Issa (R-CA) introduced legislation that would end to-the-door mail delivery and put USPS under a control board, moves which would lead to more layoffs and bust postal service unions. Such proposed “fixes” are a thinly-veiled Republican ploy to use the unnecessary PAEA requirement to attack public sector employment.

Darrell Issa Republican Representative from California and 
Fred Smith of FedEx are both interested in closing down the Post Office.

Issa wants to rid of the largest union in US. Smith wants to pristine the postal system for profit (increased costs of mails).

Smith’s main contribution to the mailing industry “has been to undermine the union wages and conditions won by the U.S. postal and UPS workers.”

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Postal Service Set to Default on Pension Payment for First Time, but Congress Could Easily Fix the Problem

By Ben Sherman

In 2006, the Republican-led Congress passed an unnecessary law requiring the United States Postal Service to prefund its pension benefits for 75 years through a $5.5 billion annual payment. The Postal Accountability and Enhancement Act of 2006 (PAEA) is theonly one of its kind for a government agency. On August 1st of this year, the Post Office will likely default for the first time in its history on its 2011 pension payment. If Congress does not act, it will also default on its 2012 payment due September 30th.

The requirement has drastically harmed the functions of the agency, which is used by almost every American. In July, USPS began closing offices around the country to meet the annual payment. By the time current downsizing plans are completed in 2014, Americans will see 229 processing plants closed and 28,000 jobs lost. In June, ten USPS employees launched a multi-day hunger strike to protest the cuts.
Without the pension payment, USPS would have a $1.5 billion surplus instead of a $20 billion shortfall. “[T]hese ongoing liquidity issues unnecessarily undermine confidence in the viability of the Postal Service among our customers,” said USPS spokesman David Partenheimer.
Postal Service cuts also threaten to increase economic inequality. A Reuters analysis released in February found that America’s poorest communities “stand to suffer most if the struggling agency moves ahead with plans to shutter thousands of post offices.”
A vast majority of postal offices under consideration for closure are located in rural areas, where poverty rates are higher than the national average. Nearly 90 percent of Americans without broadband access live in rural areas, making USPS cuts especially harmful to the pocketbooks of rural Americans.
Congressional Republicans have consistently pushed to downsize USPS. In 2011, Rep. Darrell Issa (R-CA) introduced legislation that would end to-the-door mail delivery and put USPS under a control board, moves which would lead to more layoffs and bust postal service unions. Such proposed “fixes” are a thinly-veiled Republican ploy to use the unnecessary PAEA requirement to attack public sector employment.
In April, the Senate passed a bipartisan bill to stretch the pension payments over only 40 years,reducing the annual payment to $2.5 billion. The bill would also return $11 billion to USPS that was overpaid into one of its pension funds. “The longer the House delays consideration of the bill, the longer the uncertainty about the Postal Service’s financial future remains,” said Sen. Scott Brown (R-MA), who co-sponsored the Senate bill. “This is irresponsible and unfair.”
The House is currently preparing to leave for its August recess, making action to prevent a USPS default unlikely.
This article was published at NationofChange at: http://www.nationofchange.org/postal-service-set-default-pension-payment-first-time-congress-could-easily-fix-problem-1342712047. All rights are reserved.


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http://www.alternet.org/story/155702/how_phantom_accounting_is_destroying_the_post_office?akid=8884.176640.505Ia7&rd=1&t=5

Copy and paste into your browser the above link from Alternet.
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Ty, Tom.
.
 

Kari Tompkins (33)
Wednesday August 1, 2012, 5:47 pm
Whether people realize it or not, the Postal Service is really important. If we lose a day -- or more, then we will realize we didn't appreciate what we had when we had it.
 

William Seuffert (19)
Wednesday August 1, 2012, 8:25 pm
Again it shows where the repugs stand. They bailed out wall street and such because they made money. Bail out the PO? why they will not make any money. Have it collapse then turn it over to corporate control bust the union and watch how little they get paid compared to how much will be charged! How sad! but people need to wake up and vote democrat because the repugs will kill this nation and sell it to the highest bidder.
 

Roseann D. (178)
Wednesday August 1, 2012, 9:31 pm
And so ends the myth that the GOP are patriotic Americans. They undermine, privatize and destroy everything that made America great... And they dare to question Obama's loyalty and citizenship when they themselves dismantle America to sell off piece by piece to the highest bidder. They'd sell off their own mothers if they could get plug nickels for em.
 
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