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-- the United States Postal Service is set to default out of five and a half billion dollar payment due to treasury tomorrow what will this mean for your mail delivery how close is the Postal Service to being insolvent joining us today.
Is art sackler coordinator of the coalition.
-- -- 21 century Postal Service.
-- -- you so much for joining us what do you think I mean are they gonna make the payment or they gonna default what does it mean.
Well first -- -- thanks for having me and they are not going to make the payment they are going to default on.
This payment and another one due at the end of September that's just as large they simply don't have the money to be able to pay the treasury back.
And make their payroll and keep the lights -- so it's -- -- -- -- Nothing is far as the average.
User of Postal Service goes -- -- going to be keeping up deliveries that are diverting.
Whatever money they have.
To maintaining their operations.
The bad effect of it is that we're.
A perfect storm here of problems for the Postal Service that is the defaults.
The in action so far of congress that is the way of proceeding further.
With a bill in front of the House of Representatives at the moment.
And both of these things are happening at the worst possible time.
And right that is because most of the major mailers and a lot of the mid size mailers who collectively make up about -- I was.
-- gonna get its act together though it is the problem let me make it very clear what needs to happen here there -- a lot of -- costs.
That need to be cut out they lost thirteen point six billion dollars over the past two years.
Yeah or thereabouts you blow through fifteen billion dollars in credits.
To the treasury it it's just it's not a business that's making money right now when to the cuts happen that need to be done.
Well -- already done an awful lot of cutting but unfortunately it's what's happening to them is overwhelming what they've done they have to do much much more you've heard about.
Financial institutions which are too big to fail.
This is an institution that's too big to succeed.
It's got to be slimmed down and at the same time congress has to pass legislation that will help -- That right is -- we understand that they'll know we're a stalemate in congress but it's really a simple matter of how else -- the post office generate revenue -- right now it's basically just about selling stamps and other posted your mailing costs right so are there any new innovations.
That you could even suggest.
Well the Postal Service has tried very hard to go down that route and they are still trying to innovate their package business for example has.
Really picked up steam over the last two or three years because of their innovative pricing scheme enough it fits it ships.
And because e-commerce retailers use it so much to deliver.
All of the goods that you order from Amazon or overstock -- -- Take your pick.
But its bread and -- which is first class mail continues.
To decline and that's all the big.
Business mailers the financial institutions.
The retailers that telecommunications companies and so forth.
And there there's no real cure -- yeah got to be managed down it's got to be slowed to the extent that it can't.
Yet -- -- though it's on the labor costs which is 80% of what's being spent here are exactly thanks to -- I'm Greg.
We appreciate your.
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