interestrateripoff Posted April 13, 2013 Share Posted April 13, 2013 http://www.zerohedge.com/news/2013-04-13/guest-post-great-postal-fraud http://about.usps.com/who-we-are/financials/financial-conditions-results-reports/fy2013-q1.pdf The honesty of the people writing this report is refreshing. They essentially admit they are BANKRUPT and unable to meet their financial obligations. In other words, a truly INDEPENDENT entity admitting they can no longer operate. How is this for honesty:“The Postal Service continues to suffer from a severe lack of liquidity. The Postal Service held total cash of $2.9 billion and $2.3 billion as of December 31, and September 30, 2012, respectively, and had no remaining borrowing capacity on its $15 billion debt facility (See Note 3, Debt, for additional information). The increase in cash balances for the quarter is largely attributable to the seasonal impact of holiday mailings, along with additional revenue resulting from this year’s political campaign and elections. Cash balances generally decline during the remainder of the fiscal year, as revenue is not as strong in the remaining quarters. By the end of this fiscal year, the Postal Service projects it will have a liquidity balance that will be less than its average weekly expenses of $1.3 billion. This low level of available cash means that the Postal Service will be unable to make the $5.6 billion legally-mandated prefunding of retiree health benefits due by September 30, 2013. Further, this level of cash could be insufficient to support operations in the event of another significant downturn in the U.S. economy. Through the three months ended December 31, 2012, the Postal Service has suffered 5 quarters of consecutive net losses and net losses in 14 of the last 16 quarters. The net loss of $1.3 billion for the first quarter of the year included $1.4 billion of expense accrued for the legally-mandated prefunding payment for retiree health benefits. The requirement of the Postal Accountability and Enhancement Act, Public Law 109-435 (P.L. 109-435) to prefund its retiree health benefit obligations, a requirement not shared by other federal agencies or private sector businesses, plus the precipitous drop in mail volume caused by changes in consumers’ uses of mail, have been the two major factors contributing to Postal Service losses since the recession ended in 2009. Without structural change to the Postal Service’s business model, it will continue to be negatively impacted by these factors and, absent legislative change, it anticipates continuing quarterly losses for the remainder of 2013.” In the past six years they have lost $41 BILLION and they have a cumulative deficit of $36 billion. How many INDEPENDENT organizations can run up deficits of $36 billion without going out of business? YOU are on the hook for these accumulated deficits, just like you were on the hook for all of the Fannie and Freddie backed toxic mortgages. The Post Office will lose another $10 to $15 billion this fiscal year. You will be on the hook for that too. They have $15 billion of debt on their balance sheet, with $9.5 billion payable in the next 9 months. How will this INDEPENDENT government agency that is losing $16 billion per year pay off $9.5 billion? They won’t. The government drones will pass a bill in the middle of the night extending the terms with no cash flow requirements or expectation of repayment. I wonder if I can get a loan like that? The really interesting stuff is buried on page 42 of their report. I wonder why it is all the way back there? In addition to their $15 billion of debt, they have another $70.5 BILLION of unfunded future obligations. The two biggest are: $33.9 Billion of payments for pension and health benefits for retirees, all due within the next 5 years. It’s not cheap providing gold plated benefits to government workers. $25 billion for workers compensation and sick leave payments. Yikes!!! It must be all that stress, because the mail never stops. It keeps coming and coming. It’s almost enough to make someone go postal, or at least file a stress related workers comp claim. Impressive. So how long before the US taxpayer gets a postal service? Link to comment Share on other sites More sharing options...
Darkman Posted April 14, 2013 Share Posted April 14, 2013 It has 637,000 employees when it only needs 300,000. Well this part of the article is misleading, so that makes me wonder about the article as a whole.... The USPS is currently hiring en masse. Why would they do that when they're in such dire straits you might ask? The reason is their current staff are pushing overtime to the limit, earning themselves a tidy sum. There seems to be something in the American psyche about working very long days. Anyway, the new staff will take the extra work and reduce this O/T, saving the USPS a lot of money. Just thought I'd mention that, because the article didn't. The truth is actually the opposite to what the article states. Link to comment Share on other sites More sharing options...
gadget Posted April 14, 2013 Share Posted April 14, 2013 Usual zero hedge hyperbole. There is nothing wrong with the us postal service that a sane congress couldn't fix. http://www.fool.com/investing/general/2013/03/04/how-the-postal-service-is-being-gutted.aspx Summary: 1) The USPS has been mandated to do something no other private or public company has to: prefund it's pensions for the next 75 years. That accounts for pretty much all its loses (and is insane. Paying now for pensions for people who not only aren't employees... But aren't even born yet) 2 They are banned from raising prices or cutting services. They are also banned from giving discounts to big customers. 3 They are banned from moving into other businesses eg banking services Link to comment Share on other sites More sharing options...
dinker Posted April 14, 2013 Share Posted April 14, 2013 The USPS is not required to prefund the "pension plans". It is mandated to prefund "future retirees" health care benefits. Link to comment Share on other sites More sharing options...
MarkG Posted April 14, 2013 Share Posted April 14, 2013 1) The USPS has been mandated to do something no other private or public company has to: prefund it's pensions for the next 75 years. That accounts for pretty much all its loses (and is insane. They would still be losing billions of dollars a year without that requirement. Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted May 13, 2013 Share Posted May 13, 2013 USPS Urges Congressional Relief Amid $1.9 Q2 Loss http://www.ecommercebytes.com/cab/abn/y13/m05/i13/s03 Link to comment Share on other sites More sharing options...
cashinmattress Posted May 13, 2013 Share Posted May 13, 2013 Royal mail is equally as bankrupt. Might be sold off to the Chinese as well. All part of the UK's bright future as contrived by our ever responsible gov't. Link to comment Share on other sites More sharing options...
interestrateripoff Posted May 13, 2013 Author Share Posted May 13, 2013 USPS Urges Congressional Relief Amid $1.9 Q2 Loss http://www.ecommercebytes.com/cab/abn/y13/m05/i13/s03 It's only money. Link to comment Share on other sites More sharing options...
SHERWICK Posted May 13, 2013 Share Posted May 13, 2013 Don't they owe loads of money to the Tour de France too? Link to comment Share on other sites More sharing options...
motch Posted May 13, 2013 Share Posted May 13, 2013 Royal mail is equally as bankrupt. Might be sold off to the Chinese as well. All part of the UK's bright future as contrived by our ever responsible gov't. It has been portrayed that way to enable a few to make money out of it. yes there are a few private equity companies interested in asset stripping the whole set up. Link to comment Share on other sites More sharing options...
kraft Posted May 13, 2013 Share Posted May 13, 2013 Well this part of the article is misleading, so that makes me wonder about the article as a whole.... The USPS is currently hiring en masse. Why would they do that when they're in such dire straits you might ask? The reason is their current staff are pushing overtime to the limit, earning themselves a tidy sum. There seems to be something in the American psyche about working very long days. Anyway, the new staff will take the extra work and reduce this O/T, saving the USPS a lot of money. Just thought I'd mention that, because the article didn't. The truth is actually the opposite to what the article states. They work overtime but they don't do anything productive. They are unionized and can't be fired. It's like those union auto workers in Detroit who make 90k/year literally sitting in a room reading the newspaper. Then add the fact that the government thinks of the USPS as a make work program for otherwise unemployable minorities. Link to comment Share on other sites More sharing options...
cashinmattress Posted May 13, 2013 Share Posted May 13, 2013 It has been portrayed that way to enable a few to make money out of it. yes there are a few private equity companies interested in asset stripping the whole set up. Well, it is state owned, but their pension book is what's going bring about the end. Link to comment Share on other sites More sharing options...
motch Posted May 13, 2013 Share Posted May 13, 2013 Well, it is state owned, but their pension book is what's going bring about the end. yes the pension book is the issue, but how many other companies are in the same boat though. The sell off might raise about a billion for the govt, not much in the grand scheme of things. Link to comment Share on other sites More sharing options...
cashinmattress Posted May 13, 2013 Share Posted May 13, 2013 a billion About the cost of one weeks worth of RBS/LLoyds bailout dosh. Link to comment Share on other sites More sharing options...
The Eagle Posted May 13, 2013 Share Posted May 13, 2013 They work overtime but they don't do anything productive. They are unionized and can't be fired. It's like those union auto workers in Detroit who make 90k/year literally sitting in a room reading the newspaper. Then add the fact that the government thinks of the USPS as a make work program for otherwise unemployable minorities. Your neo-liberal propaganda lies might have worked 10 years ago but nowadays they won't convince anyone anymore. Postal workers certainly do a lot more and more socially useful work than banksters and speculators who steal billions off the rest of us. Link to comment Share on other sites More sharing options...
motch Posted May 13, 2013 Share Posted May 13, 2013 They work overtime but they don't do anything productive. They are unionized and can't be fired. It's like those union auto workers in Detroit who make 90k/year literally sitting in a room reading the newspaper. Then add the fact that the government thinks of the USPS as a make work program for otherwise unemployable minorities. next you'll be saying the US plumbers all earn 250k a year. Link to comment Share on other sites More sharing options...
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