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Postal Office Reports $2.2B More In Losses

From a tear soaked Associated Press:

Postal Service reports billions in losses

Jennifer C. Kerr, Associated Press – Tue May 10, 2011

WASHINGTON – The Postal Service is continuing to hemorrhage money, reporting a loss Tuesday of more than $2 billion over the first three months of the year and warning it could be forced to default on federal payments.

Federal payments to whom? Its employees and retirees? Heaven forefend!

Such a default would not interrupt mail service to millions of Americans, but it could further hobble an agency struggling with a sharp decline in mail because of the Internet and a tough economy.

Not to mention their overpaid and underworked union employees, who get lavish healthcare and retirement benefits. Of course the AP wouldn’t mention that. (The same AP that is having its own labor problems.)

The agency says the $2.2 billion loss covers Jan. 1 to March 31, 2011 — sharply higher than the net loss of $1.6 billion for the same period last year. The post office also said it will have reached its borrowing limit, set by Congress, of $15 billion by the end of the fiscal year.

So what we have here is a microcosm of the federal debt limit problem. And the solution would seem to be the same as well. Cut spending.

Unless Congress intervenes, the Postal Service said, the agency won’t have the cash for certain payment to the government, such as billions for a trust fund to provide health care benefits for future retirees

Which is what this is all about. The Post Office wants the taxpayers to bail out its unions’ lavish pension programs. Just like the taxpayers did for the UAW.

In the last three years, the agency has cut over 130,000 jobs. And it’s making more cuts, with the elimination of about 7,500 administrative jobs in regional offices.

Many of those employees have been bought off, which also costs money.

The Postal Service does not receive tax money for its operations.

This is an obvious lie. The article just noted that the Post Office was given a $15 billion government ‘loan’ to help it through its financial difficulties. A loan from the US taxpayers it will never bother to repay.

And once the fiscal year is over in September, they will get another government ‘loan’ they will never be able to repay.

This article was posted by Steve on Wednesday, May 11th, 2011. Comments are currently closed.

6 Responses to “Postal Office Reports $2.2B More In Losses”

  1. Astravogel says:

    I read somewhere that the USPS has
    to ‘pre-load’ their retirement program,
    and that no other entity has to do this.
    Since Congress enacted this provision,
    they can also change it to something
    more financially realistic. Think that’ll
    happen? The Big Rock Candy Mountain
    is fast becoming the Miniscule Gravel
    Candy Pit.

  2. Liberals Demise says:

    Ah yes…..and government run, too!
    Kinda makes me want to buy a US Savings Bond.
    NOT!!

  3. proreason says:

    kinda makes you wonder why those greedy business guys spend so much time obsessing about their precious “profits” doesn’t it.

    They should just turn on the money tap.

    There appears to be an infinite supply.

  4. untrainable says:

    Solution. Make everyone pay the same amount for postage. If the purveyors of all the junk mail (99.8% of all the mail I get delivered by USPS) had to pay the same postal rate as everyone else the post office might be solvent. Either they would make enough money to ship the coupon extravaganza without borrowing from the taxpayer, or the junk mailers would stop sending the bulk of the bulk they ship because they couldn’t afford it anymore.

    Give the whacko greenies something real to fight for. The end of junk mail in our time!!!
    (shameless motto) “Save the trees for the children.”

    • Petronius says:

      Well said, untrainable. Where is Al Gore when we really need him?!

      Every day I get a stack of junk mail that would choke a horse. It goes straight into the recycling bin. It’s nothing but a make-work jobs program for unionized postal workers and garbage collectors, with us stuck in the middle and footing the bills.

  5. Mithrandir says:

    GOVERNMENT’S CONTEMPT FOR YOU!

    ~Post office broke.—who cares, increase taxes.
    ~Border not secure–screw you!
    ~14 Trillion in debt–**ck you pay me!
    ~Social Security bankrupt–too bad, shut up already!
    ~Medicare will be an expensive totalitarian hand-out machine—pay us or go to jail.
    ~Cops abuse, tazer, beat-down anyone for anything—that’s gov’t for ya!
    ~Prison system is a modern day gulag–plead guilty, and maybe we won’t send you there.

    Your abusers at work


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