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Tuesday, July 31, 2012

USPS: We Will Default on $5.5B Payment Due This Week

WASHINGTON (AP) - The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury, adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.

With cash running perilously low, two legally required payments for future postal retirees' health benefits — $5.5 billion due Wednesday, and another $5.6 billion due in September — will be left unpaid, the mail agency said Monday. Postal officials said they also are studying whether they may need to delay other obligations. In the coming months, a $1.5 billion payment is due to the Labor Department for workers compensation, which for now it expects to make, as well as millions in interest payments to the Treasury.

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4 comments:

Anonymous said...

Let it die! Privatize! No more mail monopoly!

Anonymous said...

The Fed passed a law that they must pre-pay retirement benefits into a fund controlled by the Government. Now the Government can go in and rob it like L.B.J. did with Social Security. Oh, did I mention he was a democrat?

Anonymous said...

" Anonymous said...
Let it die! Privatize! No more mail monopoly!

July 31, 2012 12:08 PM"

Yeah! I want to pay $1.50 to FedEx to mail a letter! Free market, woo hoo!

Anonymous said...

1:47 Dumb mule...

You paying 10 times that with the Government service.

Figure it out.