U.S. Mail Defaults -- Again

The U.S. federal government showed again that it's good at kicking the can down the road now that the Congressional vote postponed the debt ceiling deadline until Feb. 7.

It's true that a default on the nation's debt was averted, but an actual default did occur at the end of September.

The U.S. Postal Service has defaulted on a $5.6 billion payment for retiree health benefits that was due on [Sept. 30]. — CNNMoney, October 3

That's the third such default for the U.S. Mail, according to the article. The Postal Service hit its debt limit in 2012, so it cannot borrow any more money from the U.S. Treasury.

The Postal Service's financial troubles, the bankruptcies of several major U.S. cities in recent years, and the precarious finances of state and federal government are similar to the deflationary picture Leading Deflationists paint.

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