Why does the 'US MINT' need to make a profit?

Too bad the people that make these laws cannot make the same laws applicable to themselves. Curious how they can make such laws applicable to the post office and the US mint but not the Congress.

 

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Medoraman, Boeing does not need to have the pension plans for all their employees funded today, even if the employee is going to be there for 30 more years. They can contribute to it over time.

USPS does not have that luxury. Congress forced them to fund pensions for the next 75 years in advance. They can save $6 Billion a year starting right now if they can go back to doing it the way everyone else does.

Don't believe me. Check for yourself.

 

Strange that nobody has addressed this comment nor pointed folks to the US Mint's Web site where Annual Reports regarding profits (going back to 2001) are readily available for download and analysis.

http://www.usmint.gov/about_the_mint/?action=annual_report

You want to know who pays for what?

Read the Reports.

As for the Federal Reserve returning "hundreds of billions in profits" back to the Treasury? Not so. The Federal Reserve Bank, which actually "own" the Federal Reserve Notes you spend on a daily basis, is responsible for maintaining the economy of the country by issuing notes (currency) to the public. It is a fairly complex subject of which I know little about BUT the Federal Reserve Bank is no more a part of the US Government than Federal Express or Federal-Mogul Corporation.

The "Federal Reserve Bank", in a sense, is the primary "creditor" for the United States of America. They do not "give" the country money or share their profits with the country.

 

Actually, that is complete nonsense. Does the President of the United States appoint the Chairman of the Board of Federal Express or Federal-Mogul? Does the United States Senate confirm them? Does the bicameral Congress establish the policy prescriptions and goals for Federal Express or Federal-Mogul?
No, no, no and no. The Federal Reserve system has those attributes.

Does Federal Express have "members" who are required by federal law to buy shares in Federal Express at a share price established by federal law? Does Federal-Mogul? No and no. The Federal Reserve system does.

Is the investment return to stockholders of Federal Express or Federal-Mogul set by federal law? No it is not. It is for shareholders in the Federal Reserve system.

No, the Federal Reserve is fully and completely federal. What it is NOT is subject to political machinations. It is intended to be every bit as politically INDEPENDENT as the federal courts are, and that's what some politicians who like to lie about the nature of the Federal Reserve can't stand.

 

The difference is private pensions are "fully funded" if the company puts the full amount of that years funding requirement into the pension fund for each person each year. With the USPS when a person is hired they have to pay into the pension fund the full amount they would have to pay over the whole time from between when they are hired and when they would retire.

Actually I believe they are just required to not show a loss.

 

And the Royal Canadian Mint came up with a "better way" to stay cash flow positive. Put out about a gazillion products for collectors (far more than the USM) and charge outrageous premiums for them (far higher than the USM), but keep the mintage for each down (far lower than the USM). Works for them.

Only American collectors will stay up all night on a clammy sidewalk to buy a "mint to demand" piece.

 

I thought that:

1. They are allowed to calculate conservative interest on the pension funds
2. They had to contribute the amount of money their liability increased each year. To say a new hire would require them to put aside the full amount of pension funding, assuming that employee will work for 40 years, would be ludicrous.

Its conservative, no doubt, especially in light of other governmental pension actions, but I do not believe they need to contribute the full amount of pension for a new hire day 1, only how much their liability for a pension to that worker has gone up.

 

Okay so my father retired from the USPS. One thing you have to remember is the USPS tries to deliver to just about everyone. UPS and FEDEX does not. For example in some small towns UPS and FEDEX will subcontract the USPS to deliver packages for them (usually at a loss to USPS). Some small towns create massive losses for the USPS. Secondly, by law the USPS cannot raise postage higher than the inflation rate so they are stuck and cannot try to raise rates for certain locations while their competitors can.

 

They don't, quite. But a new hire that replaces a recent retiree will not instantly DOUBLE the liability that needs to be funded fully for that position immediately (the old guy and the new) anywhere OTHER THAN the United States Postal Service. This has been done for a specific reason - it allows Congress to hold the prospect of complete abolition and privatization over the USPS' head ad infinitum without needing to worry about an unfunded pension liability.

Management by draconian threat is the long suit of the USPS and has been for decades. I believe this explains two things. 1) The 200-yard postal worker stare, and 2) "going postal".

By the way, it IS ludicrous. It also happens to be true.

 

I don't know how you would do that, only if the organization provides a specific service like USPS or the Mint. How would you expect to do that if you owned a business? Charge to use all roads? Charge to put fires out or if you call the police? Charge for each customer that used your sidewalk in front of your business? Charge you to be protected from terrorism or foreign invasion?

 

I worked for UPS for thirty years and never heard of such a thing. We delivered everywhere, except APO's. Cite your source sir.......

 

I'm pretty sure it's the other way around. FedEx calls it Smartpost I think.

 

I'm in a town of about 9,000. FedEx dumps just about everything at USPS, UPS delivers just about everything.

Yep, the way the USPS's is required to fund pensions, unlike everyone else, is the reason for its losses. Why did Congress require this? Being the upstanding entity it is, uninfluenced by "outside interests", what do you think?

 

Stay on track dude. They were examples that just because "Federal" appears in the name doesn't mean it's a Federal government organization.

And yes the President and Congress are required to make certain approvals but the reality is that "the Bank" (i.e. The Feds) "owns" the country. Thomas Jefferson was against a Central Bank. Abraham Lincoln was against a Central Bank. Both were in favor of a National Currency backed by the United States government, not the "promise" of a Central Bank.

A moderate increase in the interest rate charged could bankrupt the country and as a creditor, they are within their legal authority to do so.

 

Andy Jackson too......

 

Damn Right! Didn't that poster watch Cast Away?

 

Wilson?

 

Yes, and both are mere bones that don't even connect any more. So what? What POSSIBLE relevance do Jefferson and Lincoln economic policies have today? Is our economy still a zero-growth agrarian one? Was there's one in which capital flows across the Pacific in microseconds?

Lincoln's presidency ended the same time the great Latin Currency Union was started (the reason 20FrF used to equal 20Lire and 20SF and 20rubles and 20BelgianFr and 20 several lesser currencies). It collapsed by World War I because nations cheated rather than see their currency siphoned off by trade deficits. The only way they could figure out to make currencies convertible was their metal content. Bretton Woods tried to create Currency Union Lite but failed miserably. Signed in 1944, it took until 1961 to take full effect and was dead within a decade. (By the way, the $4 Stella was an experiment to make a Latin Currency Union equivalent coin, which wisely was dropped.)

In the 1960's, economists found that there is only one way to stop currency raids on currencies artificially held at fixed exchange rates - full floating exchange rates, aka a free market for currencies. This ALSO meant no currency could be tied to the value of anything else, even gold. We have this today. The world market determines what each nation's currency is worth, and right now, they're all loving the ol' U.S. greenback, even more than gold or silver, compared to recent history.

This is ALSO why the euro union is doomed. Sovereign nations who want to make their own economic decisions can't use a common currency. Ask a Greek.

 

Makes a lot of sense to me........

 

Also, the Federal Reserve Board and all their employees ARE federal government employees. These are the ones that work in D.C. in the stately white HQ building. The employees at the 12 regional Federal Reserve banks are NOT federal employees.

From the Federal Reserve's own website: (Note to mods: a federal agency may not own a copyright, so posting this is okay.)

"The Board of Governors of the Federal Reserve System is a federal government agency. The Board is composed of seven members, who are appointed by the President of the United States and confirmed by the U.S. Senate. The full term of a Board member is fourteen years, and the appointments are staggered so that one term expires on January 31 of each even-numbered year. After serving a full term, a Board member may not be reappointed. If a member leaves the Board before his or her term expires, however, the person appointed and confirmed to serve the remainder of the term may later be reappointed to a full term."

ONLY the Federal Reserve Board makes monetary policy - the regional banks do not. (Side note, just because it's interesting: the Chairman of the New York Federal Reserve Regional bank, Region 2, is always on the Board. No other region has a reserved Board seat. This also means the New York chairmanship has to vacate every 14 years.)

Not a federal agency, huh? Pick a new lie, 19Lyds - this one's been punked. Maybe it's YOU who needs to get "on track", "dude".

"But, but, but, I read it on the Internet, on a silver and gold selling site."