WASHINGTON (AP) — The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury. That's adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.

With cash running low, the Postal Service says it will not make two legally required payments for future retiree health benefits — $5.5 billion due Wednesday, and another $5.6 billion due in September.

The defaults won't stir any kind of short-term catastrophe — post offices will stay open, mail trucks will run, employees will get paid.

But postal analysts point to longer-term harm, as the mail agency finds it increasingly preoccupied with staving off bankruptcy.

The Postal Service estimates that it is now losing $25 million a day.

Well considering the payments are for retirement and healthcare which is funded 75 years in advance I also see no short term problems.
The government needs to get off their ***** and untie the hands of the USPS and give them he freedom they need to stay solvent.

Inefficient as any Political Enterprise!

http://mises.org/daily/5891/USPS-The-Cursed-Carriers

I agree with some of the article.
But you can't compare the USPS with FedEx and UPS. Simple fact is FedEx and UPS don't stop at EVERY house 6 days a week, whereas the USPS is mandated by government to do. Ok we may not stop at every house because not every house gets mail every day but we still have to walk by it.

Inefficient!
Just to deliver Junkmail to the Boonies?

US-Mail is a Service whose Time has gone!
Privatize it!
Swiss Mail had to do it!
Only the Ownership hasn't changed!
But the Organization and all has been Privatized!
In another Generation or less it will probably be history!

Inefficiant by whose standards? Someone's opinion?
Like I stated in my first post the government mandates we pay 75 years in advance for Heath and retirement. And i'd bet the riminals in ongress have spent that money already thats why they wont a t on any legislation for the USPS. I agree with most of the article government needs to get out.
I'll still stand my ground that you CAN'T compare the USPS with FedEx and UPS because FedEx and UPS DO NOT OFFER THE SAME SERVICES AS the USPS.

True, but who needs the same services the USPS offers anymore? Email and internet services and other technologies have made it basically obsolete. I personally only use the USPS for packages and bills (occasionally holiday cards and such). It's my understanding that the USPS has had to stop Saturday delivery in many places.

There are surely going to be bitter clingers, but like the horse n' buggy makers of old, they'll be forced to give up because of economic forces.

You'd be surprised how many use the USPS services.
I don't know where you heard they stopped service on Saturdays in many places, but your sources are wrong. The USPS wants to stop Saturday service but it has to be approved through congress.
I would like them to stop Saturday delivery. Then I could have a "normal" job.
It would make sense if you ask me. Cutting 1/6 of their operating costs and cutting a lot of overtime pay.
But the union and democrats in congress won't let them.
I agree times are changing. But volume hasn't dropped enough to just get rid of house to house delivery yet.