8 June 2012, The U.S. Postal Service (USPS) is supposedly in financial trouble, no thanks to the U.S. Congress, but now there are reports that the USPS could give one of the countries largest junk mail distributor a cut rate deal!

Valassis Direct Mail has been negotiating with the USPS for a lower rate.  But wait, don’t blame the USPS!  The USPS can not set postal rates!  It is the U.S. Congress that makes those deals! It’s actually the Postal Regulatory Commission that Valassis Direct Mail has been negotiating with.

For some reason the mainstream newspaper media is bashing the USPS directly.  The Newspaper Association of America (NAA) says it’s not fair to give junk mail distributors a cut rate on postage, especially when the USPS is in need of cash.

It is the Postal Regulatory Commission (PRC) that will make the decision on the deal. The PRC is a Congressional commission!!!

In September 2011, the USPS Postmaster General, and the president of the National Association of Letter Carriers, explained in a heated PBS interview that it was the rules imposed by the U.S. Congress (like over paying into federal funds) that is destroying the USPS.

One of those rules is that it is Congress that makes the postage rate deals!

At the end of May 2012, the USPS announced they will layoff 45,000 employees.  It’s part of the plans to layoff 150,000 employees by 2015.  Also in May, USPS announced they would try and cut back on working hours, hoping to prevent closing down anymore post offices and distribution centers.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government (taxpayer) debt.