More Money Problems for U.S. Postal Service
- Duration 1:35
- Date Jul 19, 2012
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Hi Jamie the US post office making history in about two weeks defaulting on a payment for the first time.
Since the agency was founded in 1775.
That's because the post office is losing customers to email.
And it's tied to employee benefit obligations it can't meet in -- can't change without congressional action.
On August 1 the post office will default on five point five billion dollars in prepayment for last year to retirees health fund it was put off from last year incomes do this here and that's not at all in September a similar payment this 15 point six billion dollars will be due for this year.
And the post up it does it'll default on that payment as well if something doesn't happen.
That's a total more than eleven billion dollars the post office says that in spite of this embarrassing situation employees will be paid operations will continue.
In a statement a post office spokesman tells Fox News.
Legislation interesting the postal service's financial crisis has not been enacted and we continue to experience serious liquidity challenges.
Well defaulting on these payments will not affect our customers or employees.
These ongoing liquidity issues unnecessarily.
In the viability of the Postal Service among our customers.
Now congress continues to fight over just how to if reform the post office into a money making venture or at least one that isn't losing billions every year.
-- lawmakers set to take an August break.
Action is not likely any time soon those so those defaults -- probably go forward Jamie Steve Centanni Latin Washington Steve thanks.