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View Diary: Is the US Post Service doomed? (51 comments)

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  •  So although its the job of the PRC to set (0+ / 0-)

    The price of a stamp to ensure the post office remains revenue neutral, Congress' mandating a $5 billion/year additional cost to a revenue neutral business, is the only reason why the US postal service is in debt?

    The Postal Service is looking at a $9 billion debt this year which is $4 billion more than the $5 billion it needs for the ret. fund.

    Despite all of the lay offs and the cost cutting it' done, it is still running a debt.

    No one can ship a letter across country for $0.45 anymore.

    It's just not possible.

    •  you're certainly slinging numbers, but are you (0+ / 0-)

      talking debt, or deficit?  Are you mixing and mismatching?

      Do you know?

      It seems curiosity has killed the cat that had my tongue.

      by Murphoney on Sat Jan 19, 2013 at 01:57:44 AM PST

      [ Parent ]

      •  Great question. What do you think. (0+ / 0-)

        If the post office defaults on its payment to the retirement fund that Congress has mandated so it can pay other debts like workers compensation insurance.  And the total amount that it owes is 15 billion dollars, which is debt and which is deficit?

        Debt and deficit amount to much the same thing i suppose for an entity like the US postal service which cannot do much about either.  

        Technically speaking, the PRC should be ensuring the PO doesn't run a deficit to the point that the deficit turns into unpaid debt.

        Technically that is.

        Really, I don't know anything more than what can glean from sources.

        Truthfully, the $9 billion dollars was in fact an educated guess.  There are numbers ranging from $5 to $15 billion and after everything I've read I felt that $9 billion was probably the closest to the truth I could get.

        Now, that would be confirmed debt and not deficit.  The number depends on when the next $5 billion is due.

        I think congress has delayed the due date.

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