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U.S. Postal Service Default

rforeback Wrote: Jul 22, 2012 9:03 PM

Good suggestion. That is part of the bill in the house that they will not bring to the floor. That provision would restructure the remaining 6 years of payments over the next 40 years. USPS basically owes around $32 Billion to this fund. There is already around $23 Billion in there now. Why the rush to fund something that isn't expected to be needed for 75 years? Why does it have to be funded to 100%? That is something missing from the story. This isn't for any benefit of current retirees or workers, it is for FUTURE retirees, many of whom are not yet even born let alone can be counted as a USPS liability. What sense does that make?

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U.S. Postal Service Default

No, the U.S. Postal Service won’t close on August 1^st because it can’t afford to make a required $5.5 billion payment into a federal fund for postal retiree health benefits. Yes, the entire situation with the USPS is a mess. But when you have politicians ultimately trying to run a commercial operation, constant clean ups in aisle four are to be expected.

Here’s the situation:

1. The USPS is bleeding billions of dollars in red ink and has just about maxed out its line of credit with the U.S. Treasury.

2. In April, the Senate passed a bill that...

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