You’re probably asking yourself, “wait a second, didn’t the United Postal Service just raise stamp prices from 44 cents to 45 cents a stamp?” The answer is, yes, they sure did. Unfortunately the ailing USPS system is buried in losses, debt and problems and they need a lifeboat. That new lifeboat for the USPS could increase stamp prices to 50 cents a stamp.
The U.S. Postal Service has released numbers that say if things don’t change for it that by 2015 they’ll be $18.2 billion dollars in debt. What are the fixes to keep from approaching this blackhole of postal debt? The Post Office doesn’t want to just raise stamp prices to 50 cents they want to eliminate Saturday delivery and slow down first-class mail delivery by one day.
Things are just aren’t what they used to be and that card, letter or package from grandma just may not come because it’s too expensive or it might just arrive late because the Postal Service wants delayed delivery. UPS and FedEx just may be getting more private services for things that at least have guaranteed delivery dates.
What is even more scary is the USPS postage rate increases really don’t factor in major gas price increases that may happen in the future. With all the talk about gas heading for a $4 gallon average for everyone in the US, that could spell absolute disaster for the Post Office debt bubble.
The Post Office has put up plans to move to 5 day delivery, close up to 252 postal locations the process mail and also close 3,700 post office around the entire country. The government, as usual, has been going back and forth and bickering whether this is a good move, bad move or whether something better could be done.
News Net Channel five reports on the proposals that have already been submitted and show how they may help the Post Office to pay off their debt. They report, “On Thursday, Donahoe said the mail agency’s proposals would enable it to save $20 billion a year by 2015, repay its $12.9 billion debt to the Treasury and return to profitability. The plan, for instance, notes that if the post office could raise current stamp prices from 45 cents to 50 cents, either in a single year or over a multiyear period, it could bring in new revenue of roughly $1 billion.”
Either way you look at it, Stamp Prices could raise to 50 cents in the near future. What you should really be expected is postal rates to continue increasing. That Forever Stamp is starting to look a little more like silver bullion and gold bullion as it’s an inflation hedge. Since 2006 USPS rates on the price of stamps has went up four times and went from 39 cents a stamp to 45 cents a stamp. You just may earn a better return on investing in Forever Stamps than a mutual fund or 401k!