"The Postal Service is continuing to hemorrhage money, reporting a loss Tuesday of more than $2 billion over the first three months of the year and warning it could be forced to default on federal payments.
The agency says the $2.2 billion loss covers Jan. 1 to March 31, 2011 — sharply higher than the net loss of $1.6 billion for the same period last year. The post office also said it will have reached its borrowing limit, set by Congress, of $15 billion by the end of the fiscal year.
Unless Congress intervenes, the Postal Service said, the agency won't have the cash for certain payment to the government, such as billions for a trust fund to provide health care benefits for future retirees.
According to Postmaster General and CEO Patrick R. Donahoe, "The Postal Service may return to financial stability only through significant changes to the laws that limit flexibility and impose undue financial burdens."
Health care and pension plans promised to public employees for decades are already bankrupt. The charade will only last so long before all of the broken promises made over the years are revealed and these people find out what's in that empty box.
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