When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Saturday, November 26, 2011

Saving a dinosaur: the US Postal Service (video)

The United States Postal Service is bleeding money - $10 billion just last year. It’s also bleeding business – mail volume is down 20% since 2006 and not coming back. Just as trains replaced the pony express, the Internet has become the modern Postal Service’s greatest competition. That’s not going to change.
A better USPS, however, is possible. . . . the Issa-Ross Postal Reform Act. . . . Americans deserve an efficient USPS that delivers for decades. But misguided action - or none at all - could saddle taxpayers with a multi-billion dollar bailout for the Postal Service. The clock is ticking…

What is the Postal Crisis already costing American taxpayers? At the end of Fiscal Year 2011 - October 1, 2011 at midnight - the Postal Service had exposed taxpayers to a potential loss of $15.8 billion. The FY '11 exposure is comprised of the $15 billion borrowing limit reached by the Postal Service during the fiscal year and $800 million in Federal Employee Retirement System (FERS) payments that the Postal Service chose to not pay. $15.8 billion is the starting point for the running tally of postal losses to which American taxpayers are exposed.

Over FY '12, the Postal Service is set to expose American taxpayers to an additional $14.09 billion in losses: $5.5 billion in deferred FY '11 retiree health care payments, $5.6 billion in FY '12 retiree health care payments, and $2.99 billion in FY '12 FERS payments that they may be unable to pay. Spreading these potential losses evenly over FY '12 means that every second taxpayer exposure to Postal Service losses increases by $445.57.



The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects