Tag Archives: USPS

Post Office: No more letters on Saturday

In an announcement on Wednesday, the United States Postal service said that Saturday mail delivery would cease beginning in August of this year.

Letters will continue to be delivered to post office boxes on Saturdays and packages will continue to be delivered to homes, businesses and P.O. boxes.

The USPS is making the changes in an attempt to stay financially viable in an environment that is becoming more competitive and despite spiraling retirement health benefits – the same problem faced by the federal government.

“The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation,” CEO Partick R. Donahoe said. “The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail.”

Through the changes to the delivery schedule, re-organization and attrition, the service expects to save as much as $2 Billion per year.

The service is not reliant on federal funding for its operation, but is subject to Congressional control. This new announcement comes without Congressional approval and despite previous Congressional opposition to delivery cutbacks which leaves the question of how the postal service will make cutbacks without Congress’ approval.

Donahoe said in his statement, “The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America’s changing mailing habits.” We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings.”

The majority of costs for the post office comes from rapidly increasing retiree health benefits to the tune of more than $11 Billion – benefits required by Congress.

 

How The Left Sees Seniors?

This weeks headlines: Harry Reid says support the Post Office because (in part) Seniors Love to get Junk Mail. It keeps them in communication with the outside world.

I’ll be honest. I laughed when I read this. Ninety-nine percent of my junk mail goes immediately into the recycling bin…that is after I shred all the unwanted credit applications.

But I’m not a senior. Yet. So I shared this with my ‘slightly’ older friends. One, who lives in a retirement neighborhood, wrote back how insulted she was. She put bulk mail in the same category as phone solicitations -neither fit into her schedule. Of course, she didn’t write immediately because she was at pottery class while her husband was out exercising. I also thought of my parents, who do claim their senior citizenship. I couldn’t talk to them about it as they are in the middle of the Arizona desert prospecting gold and photographing wildlife, out of cell phone reach. And let me just say, Mom’s last email began with OMG… They’re not waiting for the postman, to communicate with the world.

Who sits at home waiting for junk mail? The closest I could think of was my mother-in-law who suffered from Parkinson’s Disease. Its debilitating effects did keep her home and limited activities outside. Yes, I remember she always asked about the mail. Yet, she was looking for letters from the kids and her siblings; not an enlightening article advertising the merits of liposuction.

In general the seniors I know are a busy lot. They take advantage of their free time with hobbies, travel, spending time with family. Heck, many are still working. So Senator Reid’s comment makes me wonder if he speaks from personal experience or if this idea that seniors are feeble and homebound is something more related to a Progressive philosophy where elderly people have limited abilities.

Remember the health care debates? Or the left response to Paul Ryan’s Medicare modification plan (which would not affect those over 55)? Progressives claimed that the GOP wants to Throw Granny Off A Cliff while  President Obama , ironically, clearly indicated his thoughts whether seniors should have the same quality of care as others. Give Granny A Pill

There is no doubt that ‘end of life’ care might be different from ‘retiree care’ but these comments cause one to question the general attitude. Does the government think it knows what’s best for the folks? Or a better question, does this current administration listen to and understand the wants and needs of its citizens? Or is this administration, as Harry Reid appears to be, out of touch? When Team Obama accidentally shares its true agenda including its thoughts on those who might not be seen as productive workers we should take heed.

Postal Workers Caught in Tax Refund Fraud

A ring of criminals operating out of the Dominican Republic have been running a massive income tax refund scam in which billions of false income tax filings have cost the taxpayers billions of dollars in losses. In an article in The Wall Street Journal we see the following information:

Between October 2010 and June 2011, the IRS received phony tax returns based on stolen Puerto Rican identities that would have led to the disbursement of $5.6 billion to alleged fraudsters, two of these people said. It is unclear how much money the IRS ultimately sent but one person familiar with the matter said an estimated $2 billion in checks was distributed.

Bronx mail carrier Robert Anthony Warren and at least two other USPS employees have been convicted and are doing prison time for their part in the scam. Back in September five men were also convicted of participating in the same scam and sentenced to between 40 and 98 months in prison, while also being ordered to pay a whopping $12 million in restitution. Good luck recovering any of that cash there. With all of these arrests and convictions, has the oh-so-competent federal government shut down this scam for good? Not quite, as can be seen in a statement from the Manhattan U.S. Attorney Preet Bharara, whose office was among the first to investigate the group: (emphasis added)

“What we have uncovered may very well be the tip of the iceberg,” said Manhattan U.S. Attorney Preet Bharara, whose office was among the first to investigate the group. “It’s a massive fraud.”

With a federal government that is running up trillion dollar deficits faster than the Roadrunner rocketing past the outgunned Wiley E. Coyote in cartoon-land,  as the federal bureaucracy grows bigger by the minute….so increases these numbers of incidents that highlight their incompetence and dysfunctionality. In the meantime, Senate progressives are currently working tirelessly (yes.. sarcasm intended) to rig up a massive $42 billion-dollar-bailout of the USPS UNION pension fund under the guise of…. reform.  From the thieves that are scamming the taxpayers from the Dominican Republic through fraudulent tax refund checks, to today’s Senate Socialists giving their Democrat-supporting labor [USPS] Unions $42 billion tax dollars, America is being robbed blind on a daily basis, in more ways than one. Americans should keep this in mind as they head to the voting booth in November.

Senate Socialists Bailout Buffoonery Continues

The United States Senate, led by Liberal Democrat Harry Reid, is lining up at the taxpayer-funded debt-lovers cash trough again this week in the form of trying to “fix” another crisis of their own making. Meet  S. 1789  , or as today’s Senate Progressives call it, the 21st Century Postal Act of 2012: A bill to improve, sustain, and transform the United States Postal Service. This bill is sponsored by the lifelong fake Democrat posing as an Independent, Joe Lieberman. (L-D-CT) This USPS bailout bill  poses as a bi-partisan piece of work based on the support of the co-sponsorship from another fake Republican posing as a moderate, Susan Collins. (RINO-ME) The cost of the Senate-Progressives-USPS-bailout bill to the U.S. taxpayers? A cool $41 billion soon-to-be-borrowed taxpayer dollars.

For a more detailed understanding of just why the taxpayer is being forced to bailout the USPS by Senate Progressives this week, check out The United States Postal Ponzi Scheme.

It is none other than the U.S. Government itself that has caused this most recent “crisis” that threatens to shut down the USPS. In the words of Mr. Donahoe, the Postmaster General himself back in the summer of 2011, we see glimpses of the big government intervention causing the collapse of what was once a proud, viable U.S. Mail delivery system:

“The Postal Service is in a crisis today because it operates within a restrictive business model and has limited flexibility to respond to a changing marketplace,” To which he added, “We need the ability to operate more as a business does. This applies to the way we provide products and services, allocate resources, configure our retail, delivery and mail processing networks and manage our workforce.” (emphasis added)

That info-byte above is the Postmaster General of the USPS himself, begging the wizards of Congress to allow him to reform the USPS system so that they would not have to be bailed out in 2012 by the taxpayers due to the impending insolvency. Congress basically said no, and refused to allow Mr. Donohue to enact the needed reforms. Enter S. 1789, which also has another progressive debt-loving fake Republican on the co-sponsor’s list, Sen. Scott Brown. (RINO-MA) While select politicians and D.A.M. media operatives will hail this USPS bailout bill as bi-partisan during the coming weeks, it in fact, only has the support of Progressive Senators who are lining up trying to score political points for the upcoming elections.

The description of S. 1789 claims that is it designed to sustain,improve, and transform the U.S, Postal System. What will the $41 billion borrowed tax dollars be used for? As Daniel Horowitz  informs the citizenry, “This time, taxpayers will be tapped for another $41 billion to subsidize the healthcare retirement benefits of postal workers – benefits that are quite scarce in the private sector.”  The Progressive Senators USPS Bailout Bill of 2012 will not in fact “reform” the USPS into a more business-like sustainable entity, as claimed, but once again kicks the insolvency can down the road and opens the door to never-ending taxpayer bailouts of the dysfunctional, unsustainable USPS, much like the Progressive thievery  of the past two decades known as the Fannie Mae and Freddie Mac “everyone deserves a house, regardless of ability to pay” programs that led to the housing and mortgage crisis. For a look into another reason for the USPS insolvency, check out the Liberal election-buying Union manipulation that is also behind this scheme, please see The USPS is Broke.

Call up your Senators this week, demand that they say no to the Progressive USPS Bailout Bill of 2012, (S.1789) and let every single one of them know you will be paying close attention to their votes on it.

Politics: Today’s Top Ten Oxymorons

The word oxymoron is defined by Bing dictionary as being, an “expression with contradictory words:” a phrase in which two words of contradictory meaning are used together for special effect, e.g. “wise fool” or “legal murder”. (fools are not considered to be wise people and murder is never “legal”)

Number 10 on the oxymoron list comes to us via the group of 2012 GOP Presidential candidates, in the form of Rick Santorum. While Santorum is mainly running on the platform of being the non-Romney conservative alternative, an oxymoron has been used to better describe Mr. Santorum’s Senatorial voting record and when we look at that record, Mr. Santorum qualifies for the Number 10 oxymoron of the day: A Big Government Conservative.

Number 9 Small Government Liberalism. This oxymoron is so outrageous that it surely sits right next to the “wise fool” oxymoron on the list of most contradictory statements ever written. Yet in California, ( the most Liberal state in the country) we see that a Mr. Matt Rozee  actually tries to pass himself off as a small government Liberal when running for Congress. He also claims to be an Executive Director at Fox in his bio. That should make those folks that criticize Fox News for appearing to veer left recently feel pretty good.

Number 8 The Public Option becomes a ludicrous example of an oxymoron, when it is being used to promote the Liberal health-care “reforms” that basically forces everyone into a government-run health-care system where the only option people end up with is the government plan, simply because the government has put all the other health insurance companies out of business. A great example of another supposed “public option” is the option to pay taxes to support our current big government debt-spenders. The phrase, “no taxation without representation” comes to mind here.  In that case you have the option to pay your taxes and shut up.. or go to prison. Unless you are a member of Congress of course, such as Claire McCaskell (D-MO), Charlie Rangel (D-NY), or current Treasury Chief Timothy Geitner. We can now add Government Motors to the list of big government tyrants and crony-capitalists who do not have to pay taxes like the rest of America.

Number 7 –  Bureaucratic efficiency. This oxymoron is self-explanatory and would seem to be some kind of joke, if this country wasn’t $16 trillion dollars in debt and headed straight off the Greek-style debt cliff, like the plunge the once-great city of Detroit is currently undertaking. When it comes to big government  bureaucratic efficiency, today’s United States Post Office  serves up a heaping helping of reality as to how efficient a once-proud and stable organization becomes when the big government meddlers of Congress get involved.

Number 6Tolerant Liberal  becomes a great example of an oxymoron when we see this video of Rep Maxine Waters most recent expose’ of Congressional hate-speech and partisanship.

Number 5 – Secret Government Talks becomes an oxymoron when big government media manipulators use it to announce the secret meetings to the entire world, as we see in the article, ridiculously titled,  Afghanistan and US in secret talks with Taliban.  Everything qualifies as a big government secret that needs to be kept from the American taxpayers today, when we look at the recent refusal of the Obama administration to allow White House officials to  appear before Congress to explain how half a billion dollars were given to the bankrupt green energy  firm Solyndra.

Number 4 –  President Obama’s numerous campaign statements that he is working to reduce deficits and debt is a form of an oxymoron that is so far out of touch with reality that it is hard to understand just how he expects the American people to believe it. For the perfect example of this, please President Obama’s Budget Buffoonery. In that article, it shows how Obama’s latest budget proposal adds trillions of dollars of debt, and makes zero cuts to big government spending, all contrary to his thousands of recent [taxpayer-funded] campaign speeches about the need to cut the deficits and lower the national debt. Barack Obma has in fact piled more debt onto the backs of future generations of Americans in 3 1/2 years than G.W. Bush did in 8 full years in office. Obama’s debt chart can be seen in this article. Obama has piled on record debt in 3 straight years,’09, ’10, and ’11 and the 2012 deficit is now projected to once again be a whopping 1.32 trillion, and which the White House underestimated by 138%! Some folks could confuse Obama’s oxymoron about cutting deficits and debt with a blatant lie, designed to win reelection and hide his Liberal debt-spending of the past 3 1/2 years.

Number 3 – Accidentally on Purpose is a good example of an oxymoron that is mainly used as a form of sarcasm today. When looking at the debt-spending of Obama in number 4 above, while claiming that he is “reducing deficits and debt” a lot of Americans have now come to the conclusion that Obama is bankrupting America accidentally on purpose.

Number 2 –  Congressional Ethics has to be considered a flaming oxymoron today, when examining the current crop of corrupto-crats in Congress which include the following “honorable civil servants.”  Rep Alcee Hastings ( D-FL) who is the impeached federal judge who was found guilty of numerous corruption charges, yet has been re-elected to serve in Congress for 19 straight years! How about he above mentioned far left radical extremist and hate-speech generator, Maxine Waters (D-CA) who lobbied the White House for TARP money for her husbands bank illegally? When it comes to Congressional Ethics, the completely discredited former Speaker of the House, Nancy Pelosi and her profiting from insider trading certainly ranks among the top ten in hypocritical hyperbole when it comes to congressional ethics.

Number 1 and the political oxymoron of the century has to go to the statement that “Barack Hussein Obama is the most gifted speaker in the history of U.S. politics,” while the only speaking the current campaigner-in-chief does in public ever since he was elected. is to read words written by other’s and inserted into a teleprompter.  While Obama might qualify as a “gifted speech reader,” reading from a teleprompter hardly qualifies him for the most gifted speaker in U.S. history award. However, it does qualify him for the oxy-moron ( pun intended) of the century.

 

 

 

 

 

 

 

 

 

 

 

Politics: Today's Top Ten Oxymorons

The word oxymoron is defined by Bing dictionary as being, an “expression with contradictory words:” a phrase in which two words of contradictory meaning are used together for special effect, e.g. “wise fool” or “legal murder”. (fools are not considered to be wise people and murder is never “legal”)

Number 10 on the oxymoron list comes to us via the group of 2012 GOP Presidential candidates, in the form of Rick Santorum. While Santorum is mainly running on the platform of being the non-Romney conservative alternative, an oxymoron has been used to better describe Mr. Santorum’s Senatorial voting record and when we look at that record, Mr. Santorum qualifies for the Number 10 oxymoron of the day: A Big Government Conservative.

Number 9 Small Government Liberalism. This oxymoron is so outrageous that it surely sits right next to the “wise fool” oxymoron on the list of most contradictory statements ever written. Yet in California, ( the most Liberal state in the country) we see that a Mr. Matt Rozee  actually tries to pass himself off as a small government Liberal when running for Congress. He also claims to be an Executive Director at Fox in his bio. That should make those folks that criticize Fox News for appearing to veer left recently feel pretty good.

Number 8 The Public Option becomes a ludicrous example of an oxymoron, when it is being used to promote the Liberal health-care “reforms” that basically forces everyone into a government-run health-care system where the only option people end up with is the government plan, simply because the government has put all the other health insurance companies out of business. A great example of another supposed “public option” is the option to pay taxes to support our current big government debt-spenders. The phrase, “no taxation without representation” comes to mind here.  In that case you have the option to pay your taxes and shut up.. or go to prison. Unless you are a member of Congress of course, such as Claire McCaskell (D-MO), Charlie Rangel (D-NY), or current Treasury Chief Timothy Geitner. We can now add Government Motors to the list of big government tyrants and crony-capitalists who do not have to pay taxes like the rest of America.

Number 7 –  Bureaucratic efficiency. This oxymoron is self-explanatory and would seem to be some kind of joke, if this country wasn’t $16 trillion dollars in debt and headed straight off the Greek-style debt cliff, like the plunge the once-great city of Detroit is currently undertaking. When it comes to big government  bureaucratic efficiency, today’s United States Post Office  serves up a heaping helping of reality as to how efficient a once-proud and stable organization becomes when the big government meddlers of Congress get involved.

Number 6Tolerant Liberal  becomes a great example of an oxymoron when we see this video of Rep Maxine Waters most recent expose’ of Congressional hate-speech and partisanship.

Number 5 – Secret Government Talks becomes an oxymoron when big government media manipulators use it to announce the secret meetings to the entire world, as we see in the article, ridiculously titled,  Afghanistan and US in secret talks with Taliban.  Everything qualifies as a big government secret that needs to be kept from the American taxpayers today, when we look at the recent refusal of the Obama administration to allow White House officials to  appear before Congress to explain how half a billion dollars were given to the bankrupt green energy  firm Solyndra.

Number 4 –  President Obama’s numerous campaign statements that he is working to reduce deficits and debt is a form of an oxymoron that is so far out of touch with reality that it is hard to understand just how he expects the American people to believe it. For the perfect example of this, please President Obama’s Budget Buffoonery. In that article, it shows how Obama’s latest budget proposal adds trillions of dollars of debt, and makes zero cuts to big government spending, all contrary to his thousands of recent [taxpayer-funded] campaign speeches about the need to cut the deficits and lower the national debt. Barack Obma has in fact piled more debt onto the backs of future generations of Americans in 3 1/2 years than G.W. Bush did in 8 full years in office. Obama’s debt chart can be seen in this article. Obama has piled on record debt in 3 straight years,’09, ’10, and ’11 and the 2012 deficit is now projected to once again be a whopping 1.32 trillion, and which the White House underestimated by 138%! Some folks could confuse Obama’s oxymoron about cutting deficits and debt with a blatant lie, designed to win reelection and hide his Liberal debt-spending of the past 3 1/2 years.

Number 3 – Accidentally on Purpose is a good example of an oxymoron that is mainly used as a form of sarcasm today. When looking at the debt-spending of Obama in number 4 above, while claiming that he is “reducing deficits and debt” a lot of Americans have now come to the conclusion that Obama is bankrupting America accidentally on purpose.

Number 2 –  Congressional Ethics has to be considered a flaming oxymoron today, when examining the current crop of corrupto-crats in Congress which include the following “honorable civil servants.”  Rep Alcee Hastings ( D-FL) who is the impeached federal judge who was found guilty of numerous corruption charges, yet has been re-elected to serve in Congress for 19 straight years! How about he above mentioned far left radical extremist and hate-speech generator, Maxine Waters (D-CA) who lobbied the White House for TARP money for her husbands bank illegally? When it comes to Congressional Ethics, the completely discredited former Speaker of the House, Nancy Pelosi and her profiting from insider trading certainly ranks among the top ten in hypocritical hyperbole when it comes to congressional ethics.

Number 1 and the political oxymoron of the century has to go to the statement that “Barack Hussein Obama is the most gifted speaker in the history of U.S. politics,” while the only speaking the current campaigner-in-chief does in public ever since he was elected. is to read words written by other’s and inserted into a teleprompter.  While Obama might qualify as a “gifted speech reader,” reading from a teleprompter hardly qualifies him for the most gifted speaker in U.S. history award. However, it does qualify him for the oxy-moron ( pun intended) of the century.

 

 

 

 

 

 

 

 

 

 

 

USPS Declines to Extend Contract Talks

WASHINGTON, Jan. 20, 2012  — Today, the United States Postal Service declined to extend collective-bargaining negotiations with the National Association of Letter Carriers, triggering an impasse that will automatically send the matter to mediation under the auspices of the Federal Mediation and Conciliation Service.  If no consensual agreement is reached in a 60-day period of mediation, the issues will be submitted for final and binding resolution before an “Interest Arbitration” panel, which under law must consider all the evidence presented by the parties.

Post Offices Open Christmas Eve and New Year's Eve

Most Will Close at Noon

WASHINGTON, Dec. 21, 2011 /PRNewswire-USNewswire/ — All Post Offices nationwide will be openChristmas Eve, Saturday, Dec. 24, and New Year’s Eve, Saturday, Dec. 31. Most will have shortened retail lobby hours and will close at noon. Mail delivery for Dec. 24 and Dec. 31 will be the same as any other Saturday.

Each Post Office will post its revised hours of operation for these two days. Commercial customers should check with their Business Mail Entry Units for Dec. 24 and Dec. 31 hours of operation.

Customers are encouraged to go online to usps.com or to call 800-ASK-USPS for information about specific Post Offices. In addition, mail should be deposited in blue collection mailboxes before noon for early pickup on Dec. 24 and Dec. 31. Customers requiring postal services later that day are encouraged to contact their local Postmaster.

In observance of the holidays, Post Offices will be closed Monday, Dec. 26, and Monday, Jan. 2. Only Express Mail will be delivered on Christmas Day and New Year’s Day in most major metro areas. Post Offices will resume regular business hours on Tuesday, Dec. 27 and Tuesday, Jan. 3.

U.S. Postal Service may eliminate overnight service

In a bow to the efficiency of privately owned express couriers like Federal Express and UPS and admitting that email is partially replacing mail, the United States Postal Service has filed a proposal that seeks to eliminate overnight delivery of first class mail.

By no longer offering the overnight services the the postal service can close an additional 250 offices, eliminate 35,000 jobs and would expect to save up to $3 billion.

Retired postmaster Larry Hanson spoke up at a recent facility closure meeting saying that the closures beg the question that ” if we throw that away, why don’t we just turn it all over to ups and let them carry all the mail?”

The impact to mail customers will add a day to all first class mail delivery – envelopes that typically arrive 1-3 days after being sent. The specific impact is to mail in “overnight delivery areas” where the mail is expected to be delivered within one day.

The postal service has been examining this option since the summer and has now formally submitted the proposal to the Postal Regulatory Commission for approval.

United States Postal Ponzi Scheme

Postmaster General Patrick Donahoe appeared before The Homeland Security and Governmental Affairs committee on Tuesday to inform the current wizards of Congress that the U.S. Postal Service is drowning in red ink. They will not be able to avoid a total default by the end of September if structural changes are not made immediately. I refer to the wizards of Congress as such, simply because it is none other than the U.S. Government that has caused this most recent “crisis” that threatens to shut down the USPS. In the words of the Postmaster General himself, we see glimpses of the big government intervention causing the collapse of  what was once a proud, viable U.S. Mail delivery system:

“The Postal Service is in a crisis today because it operates within a restrictive business model and has limited flexibility to respond to a changing marketplace,” To which he added, “We need the ability to operate more as a business does. This applies to the way we provide products and services, allocate resources, configure our retail, delivery and mail processing networks and manage our workforce.” (emphasis added)

Welcome to the world of big government regulations, over-bearing restrictions, forced race-based social engineering in hiring practices, and Government-sanctioned Union pension plans too big too fail, Mr. Donahoe. The wizards of Congress worked hard to bankrupt a U.S. Institution that has been a source of pride in the United States of America since Benjamin Franklin was named the first postmaster general in 1775.  It is also commonly referred to as “an independent agency of the United States Government.” So just what happened to this independent agency to put it on the brink of insolvency ? Big government overreach and meddling is what has happened here once again, proving the dangers of a too powerful government full of a corrupt, misguided bunch of misfits in Congress and their never ending pursuit to “fix things.” Once again the power-hungry bureaucracy of Washington D.C. has created a major crisis that they themselves are currently holding hearings in Congress in order to “fix” the USPS. This is the direct result of uniformed voters electing fake lawyers and assorted con men/women into positions of power within our government(s) that have never faced the reality of  actually working for a living in the private sector.

While it is true that the volume of mail the USPS handles due to the current recession and the evolution of the Internet email system resulted in decreases in profits, there are two recent revelations that pushed this situation into the government favored major serious crisis mode:

Again, I refer to P.G. Donohoe’s statements to congress on Tuesday:

“Without legislative change this year, the Postal Service faces default, as available liquidity at the end of this month will be insufficient to meet our financial obligations. Even our unavoidable default on the required (by Congress) $5.5 billion RHB, ( pre-paying retirement health benefits to Union members) pre-payment and the suspension of our employer contribution to the defined benefit portion of the Federal Employees’ Retirement System (FERS) will not stave off financial disaster,” Donahoe said. “After reimbursing the Department of Labor (DOL) $1.3 billion for workers’ compensation payments in October 2011, we will have liquidity equal to approximately one week’s operating expenses. Foregoing the RHB pre-payment this year, without fundamental changes in the funding schedule, will likely only forestall insolvency until this time next year.” ( emphasis added)

Mr. Donahoe is not asking for a direct taxpayer bailout here, like the Union vote-buying, pay for play schemes that have become standard operational procedures in DC today. Instead, Mr. Donahoe would like the return of 6.9 billion USPS dollars in overpayment to the the Federal Employees Retirement System the government has collected from them this year alone. Billions in over payments? Where is this money going? While researching the current USPS Collective Bargaining Agreement that was signed in May of this year, these huge over-payments seems to be a pattern. From the USPS CBA announcement page linked in previous sentence we see some astounding truths:

“Independent actuarial studies have concluded that as a result of improper funding formulas, the USPS has overpaid the Civil Service Retirement System (CSRS) by $50 billion to $75 billion. Overpayments to the Federal Employees Retirement System (FERS) are estimated at $6.9 billion.” ( emphasis added)

Wouldn’t the repayment of all those billions of dollars in over-payments avoid the crisis at USPS is currently facing immediately? A better question would be, “ is the United States Government trying to bankrupt the USPS to facilitate a complete takeover ?”  The evidence above detailing the government’s involvement in pushing the USPS to the point of default certainly points in that direction.

This brings us to the reason for the title of this article containing the words Ponzi Scheme.By definition, a ponzi scheme, according to Answers.com  is defined as : A fraud disguised as an investment opportunity, in which initial investors and the perpetrators of the fraud are paid out of funds of later investors who lose all funds invested.

There are many forms of investments that can result in Ponzi schemes enriching the original investors at the expense of the later investors. In the case of the USPS bankruptcy, we see the workers investing decades of work,( paying into the scheme) for a promised payment ( retirement) that may or may not be there for them when they retire. Exploding Union pension and health-care costs for millions of retirees will, in effect result in the latest investors having their initial investment, (a pension paid for with decades of work) stolen from them. There simply will not be enough money to pay the USPS pensions that thousands of workers have paid into and invested their hard work into.  Without reforms in labor practices and innovative initiatives in how they do business to increase revenue, the ponzi scheme of the big government regulators and mathematically challenged legislators that have railroaded the USPS into bankruptcy will eventually collapse like a house of cards. Unless of course, Congress uses YOUR money to bail out and completely take over the USPS.

To pay for the USPS crisis that the wizards of Congress have created, somehow, some way, they will eventually have to TAX the people more. Every major money-making entity in America today has been undermined and attacked by the big government nanny-state worshipers, from the Auto companies, to big banks, to the housing mortgage sector, to the energy sector, to the water rights, to stealing Social Security funding for other Congressional ponzi schemes, right up to the point that they actually want to charge us for the air we breathe through fake climate change/ cap and trade schemes.  Big government has put the once proud USPS on the brink of insolvency, and with just one more bailout they intend to finish it off. Due directly to government regulation and incompetence the once reliable USPS mail delivery system has now become the butt of more government failure jokes.  In the end the nasty joke is on the people who willingly pay for big government  ponzi schemes where people are taxed and robbed at an ever-increased rate, and that will result in the now prevalent reduction in the freedom from tyranny that made America the land of the free for over 200 years. Wake up people.

USPS Is Going Broke

USPS and Unions

In March, 2011, the U.S. Postal Service (USPS) and the American Postal Workers Union (APWU) reached a contract agreement that preserves jobs and provides a 3.5 percent pay raise for three years. Labor costs represent 80% of USPS expenses, a very high percentage in this day of automation. The agreement protects APWU employees against layoffs and provide a 3.5 percent wage increase over the life of the contract. There will be no changes to health care benefits in 2012. From 2013 to 2016, there will be a slight increase in employees’ share of the health care contribution. The USPS spent $4.3 million on employees who did nothing, called “standby time,” because of union requirements. The amount paid for so-called standby time has “significantly decreased.” In fiscal 2009, USPS employees logged over 1.2 million hours in standby time, costing the agency more than $30 million. This declined to around $20 million in 2010 and is on track to be less than $10 million this year.

However… The USPS, which expects to lose $7 billion this year (2011), is so low on cash that it will not be able to make a $5.5 billion payment due this month (September, 2011) and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances. The problem is that the USPS relies on first-class mail to fund most of its operations, but first-class mail volume is steadily declining. In fact, in 2005 it fell below junk, or advertising, mail for the first time, and continues to lag behind junk mail. Projections are that advertising mail pieces will decline an additional 12%-30% by 2020.

“I really believe that the USPS is going to get to a point where, regardless of what it does with the prefunding [of retiree health care], it is going to implode,” says R. Richard Geddes, an associate professor of policy analysis and management at Cornell University. “It is either going to default on those obligations to its retirees or we are going to have to give it a direct bailout from the United States taxpayers.”

Union Reaction to USPS Downsizing

The USPS is planning to reduce payroll by 20 percent, citing increasing costs from employees and declining mail volume. Among the costs cited were retirement and healthcare. It was in 2007 that Congress mandated it pay over $ 5 billion a year into its retiree funds.
Unions reacted angrily Friday (August 12, 2011) to a proposal by the USPS to lay off 120,000 workers by breaking labor contracts, and to shift workers out of the federal employee health and retirement plans into cheaper alternatives. Labor experts and other unions also sounded the alarm that any move by Congress to break postal contracts would further wound an already ailing labor movement. “When you break a contract, basically what you’re saying is that we have left the era of good-faith bargaining and negotiation and entered into employer unilateralism,” said Bill Fletcher of the American Federation of Government Employees. USPS remains in negotiations with the National Rural Letter Carriers Association on a similar long-term deal and is set to begin talks with the National Association of Letter Carriers in August, 2011.

The GAO Has Its Say

Phillip Herr is Director of Physical Infrastructure Issues, where he examines federal spending for the U.S. Government Accountability Office (GAO). Herr and his team concluded that the current USPS business model is so badly broken that collapse is imminent. His report to the GAO was delivered in April, 2010. The more he tried to figure out the USPS and its financial agonies last year, the more he was puzzled. He asked USPS officials, “What’s your 10-year plan?” Herr recalls. “They didn’t have one.”

Many countries closed as many post offices as possible, moving these services into gas stations and convenience stores, just as the USPS is trying to do now. Today, Sweden’s Posten runs only 12 percent of its post offices. The rest are in the hands of third parties. Deutsche Post is now a private company and runs just 2 percent of the post offices in Germany. In contrast, the USPS operates all of its post offices.

USPS a Wondrous Creation

The USPS is a wondrous creation. But… Since 2007 the USPS has been unable to cover its annual budget, 80 percent of which goes to salaries and benefits. The USPS has stayed afloat by borrowing $12 billion from the U.S. Treasury. This year (2011) it will reach its statutory debt limit. After that, insolvency looms. On March 2, 2011, Postmaster General Patrick R. Donahoe warned Congress that his agency would default on $5.5 billion of health-care costs set aside for its future retirees scheduled for payment on September 30, 2011, unless the government comes to the rescue.

Donahoe promises that if the USPS is excused from its annual health-care prepayment of $5.5 billion, he will wring enough costs out of the system to turn a profit on its remaining mail stream. He wants to close post offices and move some of their operations into convenience stores and supermarkets, where nonunion workers can staff them.

To see just how far the USPS has fallen, watch the motion picture, “Miracle on 34th Street,” starring John Payne (not a typo), Maureen O’Hara, and (a very young) Natalie Wood.

But that’s just my opinion.