[Iran Press TV] The United States Postal Service, which has long lived on the financial edge, is on the brink of a default as it lacks cash to make its payments.
The agency may have to shut down entirely this winter if it cannot be able to make a USD 5.5 billion payment, The New York Times ...which still proudly displays Walter Duranty's Pulitzer prize... reported.
Congress should take an emergency action to stabilize the service's finances and prevent its collapse.
"Our situation is extremely serious," the postmaster general, Patrick R. Donahoe, said in an interview. "If Congress doesn't act, we will default."
This is while, the agency is considering cost-cutting measures including laying off 120,000 workers -- nearly one-fifth of the agency's work force -- to ease its deficit which will reach USD 9.2 billion this fiscal year.
The service needs congressional approval to overturn job protections and go ahead with its planned layoffs.
Powerful labor unions are angry with the move and have vowed to take action against it.
Have they considered going on strike? That kind of thing goes over so well, nowadays.
Posted by: Fred ||
09/06/2011 00:00 ||
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#1
Oldsmobiles are gone as well, but we're all still happily motoring around. That fellow in the brown truck comes down my street every day delivering something or other to the neighbors. He can toss my mail out on Friday's!
#2
Better yet, I see a fed-ex truck every day. Brown and fed-ex. Maybe the postal "service" needs to re-think it's position in the economy.
Begging for money is a short term solution. It makes you look weak.False economies with overpaid workers will never work.
It is obvious someone never got the memo.
Sell the USPS to save it. Bailouts kind of suck. Federal options may be maintained by inspection, but there is no worse work than government - which has no intensivene to work.
Besides, in REAL business, we use FED-EX or DHS anyway.
#4
I, fear that with gteh advent of email and electronic-only magazines USPS is going to go the way of the dodo. What could sabve them is that with the advent of Amazon and similar e-shops there is an increased need for parcel delivery. Unfortunately surviving in this market requires delivering stellar service. The little I know about USPS is that its service is far from stellar.
#7
Have they considered going on strike? That kind of thing goes over so well, nowadays.
You mean grandma isn't going to get her Social Security check? Oh, the humanity of it all.
[Back in the 80s and 90s, the trope was 'in the name of the children', though you hear some of it still echo today. The early 21st Century trope is 'for grandma's Social Security check'.]
#9
All they need to do is require e-mail to be delivered through the Post Office. With a stamp. By hand. I wish I was joking, but it will probably be proposed.
#10
Conduct the following experiment in your home: every day for the next two weeks, count the items of mail delivered each day, and separate into one of three groups:
a) junk mail
b) bills
c) everything else
I'll just bet that 75% or more of what you receive falls into category (a).
Without the junk mail the USPS would already be dead.
Posted by: Steve White ||
09/06/2011 7:54 Comments ||
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#11
Steve, you're right for my house.
A normal day is 3 - 5 catalogs, a credit card application and something for my father in law from the IRS even though he's been dead for 3 years.
All I get is an occasional prospectus or statement from my broker (more bad news).
#12
I remember that there was a short UPS stike sometime in the late 1970's. Everyone (including me) had to then ship their packages at the Post Office. One of the gentlemen ahead of me in line mentioned the strike to the postal worker behind the counter and she responded "I'll bet you're glad that the Post Office is here". He responded "Lady, without the Post Office, there'd be no UPS".
I think everyone in line was clapping.
Posted by: Mullah Richard ||
09/06/2011 8:53 Comments ||
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#13
You realize, of course, that as the Post Office dies, those tons of 'junk mail' will simply migrate into the newspaper center folds keeping that evil empire alive for more years.
#14
The unions and pensions, along with government rules have made it completely impossible for the USPS to stay afloat. It needs to have the rules completely tossed out and privatized fully.
But, since that won't happen expect a bail out and expect to see a repeat of this story in 2012.
#15
You realize, of course, that as the Post Office dies, those tons of 'junk mail' will simply migrate into the newspaper center folds keeping that evil empire alive for more years.
That's okay P2K, I don't buy them either. If the folks that buy newspapers want them that's cool.
#16
The logical thing would be to declare bankruptcy, then all contracts are null and void with the labor unions. Then all you have to get is a competent bankruptcy judge.
Posted by: Alaska Paul ||
09/06/2011 10:32 Comments ||
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#17
Can't they just print more stamps? And then add the value of those stamps as an asset on thier balance sheet and declare solvency?
#18
AP -this is the postal service - you expect Logic?
Anyone know what is in those Postal Service union contracts? Pension Plans? Etc....
It might be interesting to know (and publish) this information so people know what they are paying form in a bailout. And you know there's going to be a bailout.
Don't expect the LSM to do it's job. They will be declaring how terrible it is that Grandma doesn't get her SS check (which is usually direct deposited these days).
#20
Can't they just jack up the rates for all that junk mail? Maybe then the good folk at Capitol One would think twice before sending me an application every day.
The proposal, which requires congressional approval, has drawn concern from unions and labor observers for its potential to further erode the middle class. And it's renewed fears that other employers will soon follow with their own cost-cutting measures.
#22
Having been an IT consultant for the Post Office, one of the problems is the pricing.
I remember a story about a man who was building a brick house in a remote part of Alaska. None of the shipping companies would deliver his brick for less than the USPS (because the private companies' price reflect cost). USPS, on the other hand, has a policy that all prices in the US should be the same. So the guy mailed his bricks at the package rate and saved himself alot of money. Of course the USPS lost a fortune.
Posted by: Frozen Al ||
09/06/2011 11:57 Comments ||
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#23
Deployed soldiers get mail every week or two. No one bitches. Good enough for them, good enough for me.
#26
"Deployed soldiers get mail every week or two. No one bitches. Good enough for them, good enough for me."
Yeah they do. The Post Office at the base puts it in a container, then Soldiers pick up the mail and it rides military transport to the front, where Soldiers deliver the mail.
#30
This continual default claim has been going on for years. The donks need to quit building and naming post offices after prominent donks. Might consider getting rid of the unions too. The labor cost for the post office is 80%; Fed Ex something like 30+%.
#31
FedEx and USPS are not comparable. AFAIK one is mainly a percel delivery service and the other a mail delivery service. Mail de livery is far more labor intensive and parcel delivery uis more transport intensive (ie planes and trucks).
#32
I'd have to agree with JFM, they are not necessarily the same. I know it isn't a very sexy part of history, but why is the USPS one of the activities actually chartered by the Constitution? The courier business is as old as civilizataion, so why would it benefit government to have a post in every township?
I may get 75% usps junk mail, but >95% of the important stuff I receive each month is via usps, likewise going out. That is bills and city/county/state/fed government notifications. Something else the usps does for those of us who do not live in cities or major transport routes is they have a deal worked out where other big delivery gigs can get as close as possible then let the usps finish the journey. See, they have to have predictable delivery costs as well and to send a truck 60 miles out and then back can be a major resource challenge for an already minimal presence. With no usps those on the ends of the system would be at the whim of whomever delivers if it isn't a monopoly or worse no delivery/pickup.
Junk mail may mostly be a pain in the ass, but for an upcoming business it may be the best solution, else a business needs TV time or the ability to pay for mass magazine production. I get e-ads, but it always seems to be the same 10 or so. Junk e-mail gets zapped, automatically assuming it is infected with something.
I'm not saying the USPS is doing it right - it can't. Not with the labor contracts and cronyism. GPUSMC is an interesting look, apparently there will be careerists and then assistants with very different value levels.
#33
#10 Dr. Steve - today is a good example in my house. One bank statement, one ad to a store where I shop a lot when they have specials (which are all they put in the ad).
The rest? Political ads (mostly begging for money), ads trying to convince me to change my phone/internet/whatever service, and general BS. I also keep getting catalogs that promise "this will be the last catalog" unless I buy something, but they never keep their promise.
I'm more concerned about mailing out my products from our web shop. It would be a royal pain (and much more expensive) if I had to UPS or Fed-Ex them.
Yes, it is all about me. Why do you ask?
Posted by: Barbara ||
09/06/2011 18:25 Comments ||
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#34
I need the junk mail. It's great for starting fires in the fireplace and outside in the firepit.
Posted by: Deacon Blues ||
09/06/2011 19:22 Comments ||
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#35
The post office just needs to close about 1/3 of their offices. I have at least 5 post offices within 10 miles of my house. Probably need 1 or 2. That will reduce staff costs and pensions and free up a bunch of nice commercial property to sell for new capital investments.
#36
If the USPS were to go away permanently, what are the odds that FedEx, UPS, DHL or a player to be named later would come up with a lower rate for "we'll get it there inside a week" instead of just overnight, 2nd day, etc.?
#37
I think their labor costs, fuel and fleet costs would prevent a real dip in prices. They are operating at optimal right now, just my take
Posted by: Frank G ||
09/06/2011 20:55 Comments ||
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#38
Think about it. Is there _anything_ in the mail you need to respond to within a week? There is no reason to have mail delivered every day. Once every 2 or 3 days work work just as well.
The problem with email is that it isn't secure. Sure I can encrypt a message to you -- if I know your public key - and signing a message is pointless unless you have my public key. Most people just don't bother and there isn't a central authority (not the Government!) issuing certified keys (or having keyservers) and those that do charge far too much (IMHO).
Despite President Obama's repeated claims to change the tone in Washington, the White House had no comment this afternoon after Teamsters Union leader James Hoffa, speaking at an event before President Obama, said of Tea Party activists that, come November, Democrats should "take these sons of bitches out."
Warming up the crowd before President Obama's Labor Day speech in Detroit this afternoon, Hoffa warned the largely union crowd that the Tea Party was waging a "war on workers."
"We got to keep an eye on the battle that we face: The war on workers. And you see it everywhere, it is the Tea Party. And you know, there is only one way to beat and win that war. The one thing about working people is we like a good fight. And you know what? They've got a war, they got a war with us and there's only going to be one winner. It's going to be the workers of Michigan, and America. We're going to win that war," Hoffa told thousands of workers gathered for the annual event organized by the Detroit Labor Council.
"President Obama, this is your army. We are ready to march...Everybody here's got a vote...Let's take these sons of bitches out and give America back to an America where we belong," he concluded.
The Tea Party Express has called on President Obama to "condemn this inappropriate and uncivil rhetoric," saying it "has no place in the public forum."
"Jimmy Hoffa's remarks are inexcusable and amount to a call for violence on peaceful tea party members, which include many Teamster members," Tea Party Express chair Amy Kremer said in a written statement.
During the 2008 campaign, Republican presidential candidate Sen. John McCain, R-Ariz., immediately rebuked talk radio host Bill Cunningham when he disparaged then-Senator Obama in his opening remarks at a McCain campaign event. Cunningham had fueled rumors that Obama was Muslim by repeatedly referring to him by his full name "Barack Hussein Obama."
McCain immediately took responsibility and profusely apologized for Cunningham's remarks.
Should President Obama do the same regarding Hoffa comments about the Tea Party? The president has repeatedly called for increased civility in American politics. "Only a more civil and honest public discourse can help us face up to the challenges of our nation," the president said in January.
"I do believe there is hope for civility. I do believe there's hope for progress," Obama said after last November's midterm elections.
At the time Obama admitted that he had neglected "some things that matter a lot to people," including "maintaining a bipartisan tone in Washington," and that he planned to "redouble my efforts to go back to some of those first principles.
#5
What this rather drab flavor flav wannabe is attempting to do is, first, make like a Michael Buffer intro for a badass fighter, get Present Obama to look tough for unions, perhaps even a bit of power politics against obama as in get it done or we go after you too. See, obama is not a union man, he is a certain unions man.
Second, to make all unions everywhere appear united person to person, which just is not so, and likely on the other end. A number of vocations a person must join a union, and a number of union memberships require forced donations, both of which can upset people especially when they see their boss collect big money, fail on promises, and quite likely need the money garnished from the paycheck.
Obama has a history of having hype men/women say outrageous things, he take the stage and appear to surf with style, then back off a day or so later quite appearingly quite appalled and confused of the controversy, like the Bernie Mac opener.
NBA players union would have a player fined and suspended by the first showing of sportscenter for such open talk to an opposing player; here the leaver of the fee world votes present.
#6
O'Bummer will continue to decline b!tch-slapping Hoffa. When DNC-Little-Debbie-Wasserman-Schultz declined to address Hoffa's remarks during an interview today, I suspected it was all a put up deal anyway. Wasserman Schultz strikes me as the female counterpart to Anthony Weiner--strident, abrasive, and offensive--a Dem attack dog. O'Bummer was looking tough by association (with Hoffa) for the union vote. O'Bummer probably helped Hoffa script it. O'Bummer is in full campaign mode.
#9
It should be noted that the Teamsters are under a *perpetual* consent decree from the Justice Department since 2000. This decree means that they are effectively managed by the Just Us Department, and cannot do anything without Just Us Department permission.
#11
When DNC-Little-Debbie-Wasserman-Schultz declined to address Hoffa's remarks.............................. O'Bummer is in full campaign mode.
Posted by JohnQC
#13
It might not be wise to assume that he doesn't mean exactly what he says.
Channeling the Cartman in Hitler persona. Yes, when people of such position say something so clear, they should be taken at their word, even if it is biden.
#14
IIRC FOXNEWS Segment this Guam AM > VPOTUS JOE BIDEN "ANTI-GOP/CONSERVATIVES" SPEECH AT OHIO RALLY = argued that, vee the Tea Party, UNIONS = US LABOR MOVEMENT IS NOW IN A DE FACTO EXISTENTIAL STRUGGLE FOR ITS VERY HEART-N-SOUL.
SAME = the Bammer didn't downplay or criticize HOFFA'S "TAKE OUT THE SOBS" REMARK because Veep Biden was in Ohio ranting agz the GOP + Conservatives for obtructing the Obama Admin.
and
* FOX FIVE Panel-Member comment = "Its Official -the USA now has MORE JOB PLANS/SCHEMES THAN ACTUAL JOBS".
#15
Bumbles seems to like to pal around with domestic terrorists for some reason.
"A nonunion contractor who operated heavy equipment, Eddie York was shot to death during a strike called by the United Mine Workers 17 years ago. Workmates who tried to come to his rescue were beaten in an ensuing melee. The head of the UMW spearheading the wave of strikes at that time? Richard Trumka. Responding to concerns about violence, he shrugged to the Virginian-Pilot in September 1993: 'Im saying if you strike a match and you put your finger in it, youre likely to get burned.'"
"A federal jury convicted one of Trumkas UMW captains on conspiracy and weapons charges in Yorks death. According to the Washington, D.C.-based National Legal and Policy Center, which tracks Big Labor abuse, Trumkas legal team quickly settled a $27 million wrongful death suit filed by Yorks widow just days after a judge admitted evidence in the criminal trial. An investigative report by Readers Digest disclosed that Trumka 'did not publicly discipline or reprimand a single striker present when York was killed. In fact, all eight were helped out financially by the local.'"
A multi-volume chronology and reference guide set detailing three years of the Mexican Drug War between 2010 and 2012.
Rantburg.com and borderlandbeat.com correspondent and author Chris Covert presents his first non-fiction work detailing
the drug and gang related violence in Mexico.
Chris gives us Mexican press dispatches of drug and gang war violence
over three years, presented in a multi volume set intended to chronicle the death, violence and mayhem which has
dominated Mexico for six years.
Rantburg was assembled from recycled algorithms in the United States of America. No
trees were destroyed in the production of this weblog. We did hurt some, though. Sorry.
The United States Postal Service, which has long lived on the financial edge, is on the brink of a default as it lacks cash to make its payments.
Despite President Obama's repeated claims to change the tone in Washington, the White House had no comment this afternoon after Teamsters Union leader James Hoffa, speaking at an event before President Obama, said of Tea Party activists that, come November, Democrats should "take these sons of bitches out."
