US Postal Service set to default on payment
The U.S. Postal Service, facing a $14.1 billion loss this fiscal year amid plummeting mail volume, will default for the first time Wednesday, on a congressionally mandated $5.5 billion payment to the U.S. Treasury.
Postal officials said Monday that without close to that sum in the bank, they can’t make the payment, which is part of a 10-year plan to set aside health benefits for retired postal workers. Another bill for roughly the same amount is due in September, but it will likely meet the same fate.
The agency assured customers this week that the default will not affect mail delivery or employee paychecks. Benefits for current retirees are funded. There is no legal penalty for missing the payment: It originally was due last year, but Congress moved the deadline.
But as Congress prepares to head home for its August recess, the Postal Service’s latest financial hurdle is another sign that there seems to be no easy path to fixing its problems.
the postal service is a small example of how you cant fix debt with more debt..its an endless spiral out of control..