All new first-class stamps to be 'Forever Stamps'

[MNeagle]

http://i2.cdn.turner.com/money/2010/12/29/news/companies/usps_forever_stamps/usps_forever_stamps.top.jpg

NEW YORK (CNNMoney.com) -- Good news for snail-mailers: No need to keep digging for one- and two-cent stamps because all new first-class stamps will be "Forever Stamps" beginning next month.

The U.S. Postal Service has been raising postage rates more frequently in recent years as it tries to dig out a deep financial hole and is hoping to hike the current 44-cent rate in 2011. But under its new policy, which will be formally announced in mid-January, those mailing typical letters won't have to keep up with postage increases.

All new stamps good for one ounce of first-class mail will be marked with the "Forever" designation instead of a postage rate and will therefore retain their value, the Postal Service said as it unveiled its 2011 commemorative first-class stamp collection.

"Regardless of when the stamps are purchased or used in the new year, no matter how prices may change in the future, these stamps will always be equal to the current First-Class Mail one-ounce price," the service said in a statement.

The Postal Service will issue the first stamp, which celebrates the year of the rabbit in the Lunar new year, on Jan. 22 under the new policy.

The first Forever Stamp featured the Liberty Bell and was issued in April 2007. Since then, 28 billion Forever Stamps have been sold, generating more than $12 billion in revenue.

http://money.cnn.com/2010/12/29/news/companies/usps_forever_stamps/index.htm?hpt=T2

[palani]

Then why is there a line through the FOREVER?

[MNeagle]

For display purposes, so it can't be copied.

The real ones won't have the slash through "Forever".

[joe_momma]

Post office preparing for (hyper) inflation?

This seems like a neat way to avoid the frequent postage hikes that a devaluation would bring - they'll be able to raise postage as needed without having to reprint stamps or remind people how little their declining FRN can actually purchase.

(It also establishes a separate numeraire for the service.)

[mamboni]

Postage stamps as good as silver? Hmmmmm :oo-->

[Sparky]

This is probably a good move all around. I don't really see a downside for either the USPS or the consumer.

[Sparky]

P.S. It would be cool if they printed the year on them. And it would probably add to their collectibility.

[mamboni]

This is probably a good move all around. I don't really see a downside for either the USPS or the consumer.


Don't you think they are cutting their own throat, financially speaking. This forever stamp will in effect freeze their income while inflation will continue to drive their costs (fuel, pensions, insurance, salaries) ever higher?

[Ponce]

You guys will be surprised by what will happen.........the post office is deep, deep, deep doodoo.....with email taking the lead in company of UPS, Federal Expresss, the Post Officle won't last long..... the power to be want's to make the cell phone the only phone that you have and kill the land line and that's what will happen with the post office...........is hard for the government to check out every snail mail going out but easy to look at your email......same reason for the phone, easy to listen to you on the cell and hard on the land line.

[Sparky]

This is probably a good move all around. I don't really see a downside for either the USPS or the consumer.


Don't you think they are cutting their own throat, financially speaking. This forever stamp will in effect freeze their income while inflation will continue to drive their costs (fuel, pensions, insurance, salaries) ever higher?


How does it freeze their income? They can raise their price on Forever stamps at any time. And for the multitude of stamps purchased in advance to beat inflation, this becomes an interest-free loan to the USPS. The post office gets to hold that money for an extended period of time while the stamps sit idle. The whole idea is very clever.

[Ash_Williams]

Don't you think they are cutting their own throat, financially speaking. This forever stamp will in effect freeze their income while inflation will continue to drive their costs (fuel, pensions, insurance, salaries) ever higher?

The only loss they're taking is on people that hold onto their stamps for a long time. But that's a similar 'loss' to what companies take when they sell a bond. Perhaps they are hoping for some cash flow now, because of people buying these things before the price goes up.

I heard 90% of gift cards are never used. Could be there's similar stats for stamps and they're trying to take advantage of that as well. "Buy stamps now, they're good forever... of course you might lose them in a dusty drawer or they'll end up in seat cushions somewhere or you'll never use 20 stamps in your entire life."

[Twisted Titan]

You guys will be surprised by what will happen.........the post office is deep, deep, deep doodoo.....with email taking the lead in company of UPS, Federal Expresss, the Post Officle won't last long..... the power to be want's to make the cell phone the only phone that you have and kill the land line and that's what will happen with the post office...........is hard for the government to check out every snail mail going out but easy to look at your email......same reason for the phone, easy to listen to you on the cell and hard on the land line.



Do you really think that the PO is going to stand pat while Email and other means of communitcation eat their profits??

You have got to be kidding.

When the final inflection point is reached The PO will bring pressure on Gubbermint to regulate the internet and make more of a PITA to deal with.

You see in America ..........we dont adapt and over come

We make calls and get favorable rules by greasing the right palms.

Watch it play out that way

T

[mamboni]

This is probably a good move all around. I don't really see a downside for either the USPS or the consumer.


Don't you think they are cutting their own throat, financially speaking. This forever stamp will in effect freeze their income while inflation will continue to drive their costs (fuel, pensions, insurance, salaries) ever higher?


How does it freeze their income? They can raise their price on Forever stamps at any time. And for the multitude of stamps purchased in advance to beat inflation, this becomes an interest-free loan to the USPS. The post office gets to hold that money for an extended period of time while the stamps sit idle. The whole idea is very clever.


Good points. I was thinking about a scenario where people load up on these stamps at today's price for future use in years to come. Admittedly, most Americans will probably not do this, either for lack of funds or foresight. But, I will suggest to my wife that she purchase 5 years worth of these stamps. Of course, with my luck the USPS will decree these forever stamps only usable at their purchase price if they start losing more money.

[mamboni]

Don't you think they are cutting their own throat, financially speaking. This forever stamp will in effect freeze their income while inflation will continue to drive their costs (fuel, pensions, insurance, salaries) ever higher?

The only loss they're taking is on people that hold onto their stamps for a long time. But that's a similar 'loss' to what companies take when they sell a bond. Perhaps they are hoping for some cash flow now, because of people buying these things before the price goes up.

I heard 90% of gift cards are never used. Could be there's similar stats for stamps and they're trying to take advantage of that as well. "Buy stamps now, they're good forever... of course you might lose them in a dusty drawer or they'll end up in seat cushions somewhere or you'll never use 20 stamps in your entire life."


Yeas, I think you make excellent points here. USPS needs cash flow today and they are counting on a high rate of attrition (lost, stolen forever stamps). It may be a very deft move.

[Book]

http://3.bp.blogspot.com/_Xt8rlBvSeA8/THE6LqRZrUI/AAAAAAAAAEQ/NyjgXzzTbHs/s320/going-postal.jpg

They will eventually limit purchases to one book per month...lol.

[Ponce]

Oh well, you guys are only looking at what they want you to know, and think about, and not the reason for it happening........a car does not move on its own but has an engine to move it.....that's what you have to look for.....what's under the hood.

[EE_]

http://sflchronicle.com/wp-content/uploads/2009/12/charles-ponzi.jpg
Sounds like a good investment with a great return on your money!

[uncletonoose]

Don't let me go postal! ;D

[mamboni]

Oh well, you guys are only looking at what they want you to know, and think about, and not the reason for it happening........a car does not move on its own but has an engine to move it.....that's what you have to look for.....what's under the hood.


Man Ponce, you have lost me completely. What do you mean, por favor? :o ??? :o ??? :o ??? :o

BTW, everytime I read one of your posts, I hear [in my head] the voice of Puss n'Boots from Shrek movie fame. ;D

[Ponce]

Well Doc like I said before.......people only look at what is happening and make a comment aobout it but you should look for the reason of the happening and the consequences of it.....you have to step outside the circle in order to be able to look into the circle.........the same way that you have to step outside of the forest to see the forest.

Once something happens to me that's old news.......but what's coming out next for what happened is what I look for, and so should everyone else........I for one don't look for what they are saying but rather for what they don't say.

[Down1]

I notice from reading other articles on this same topic that the Empire will also be putting out stamps for the next four years celebrating the slaughter of its own citizens.

The new Civil War commemorative stamps debut on April 12. Souvenir sheets of two stamps will be issued yearly through 2015. The 2011 stamps depict the start of the war in April, 1861, at Fort Sumter, South Carolina and the first major battle of the war three months later at Bull Run, near Manassas, Virginia.
http://businessclarksville.com/2010/12/29/usps-civil-war-animated-films-to-be-forever-stamps/