retail news in context, analysis with attitude

The Wall Street Journal reports that the US Postal Service said on Wednesday that "without congressional action, it will default - a first in its long history, a spokesman said - on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees ... The agency said a default on the payment, for 2011, wouldn't directly affect service or its ability to pay employees and suppliers," but would affect confidence in the sustainability of the system.

And, the story notes, "Action in Congress isn't likely, as the House prepares to leave for its August recess."

The USPS also says that "it will default on its 2012 retiree health payment as well—also roughly $5.5 billion, due Sept. 30—if there is no legislative action by then," the Journal writes.
KC's View:
If the USPS falls in the woods and nobody hears or cares, does it make a sound?