Inspector General: Postal Service Will 'Cease to Exist' Without Bailout

by Tony Lee 15 Jan 2013 135post a comment

Inspector general David Williams, described as the “chief postal watchdog,” said the U.S. Postal Service (USPS) will go out of business this year unless Congress bails it out.

In an interview with the Guardian, Williams said the postal service lost nearly $16 billion the last fiscal year, nearly $41 billion over the last five years, and has reached its $15 billion credit limit.    When asked if the USPS will need a bailout this year, Williams said: "Yes. The choices are that it would cease to exist or it would need a bailout."   Williams, whose agency audits the postal service, says Congress may have to help the postal service with its pension payments, which he says have put the postal service “in very serious trouble.” 

According to the Guardian, the USPS has “missed its last two payments into the benefit funds” and “has never made a single payment without having to borrow from the US Treasury. “  Ruth Goldway, chairman of the Postal Service Regulatory Commission, noted the irony: “the USPS pension payment goes to the US Treasury, so for the past five years it has been borrowing from the Treasury to pay the Treasury.”  This Appeared Here…..