The Post Office is broke... again

Why are Americans so worried about turning over control of our Health Care to the Federal Government? Because even the oldest Federally-controlled corporations - the Post Office - is dead broke. The postmaster reports that they will be out of money by October. If they can't get it right in in 236 years, what hope do they have to fix an already-broken health care system?

Donahoe said that as of Sept. 30 his agency will owe the federal government a payment of $5.5 billion to fund medical costs, in advance, for future retirees, and in November it will need to make a $1.3 billion payment for worker's compensation.

"The Postal Service will not have the cash available to make both of these payments. We need legislation this year to address that fact," he said.

If it does come down to crunch time, said Donahoe: "We will deliver the mail." Employees will be paid, as will suppliers, he said. "The thing we will not do is pay the federal government."

Without some important changes to the law the post office "cannot survive as a self-financing entity," Donahoe said.