http://www.businessweek.com/magazine/content/11_23/b4231060885070.htm "The USPS has historically placed the interests of its unions first. That hasn't changed. In March it reached a four-and-a-half-year agreement with the 250,000-member American Postal Workers Union, which represents mail clerks, drivers, mechanics, and custodians. The pact extends the no-layoff provision and provides a 3.5 percent raise for APWU members over the period of the contract, along with seven upcapped cost-of-living increases" this is the kind of formula used in Argentina which lead to runaway inflation as the government printed ever more money to pay off government workers. counter arguments it can't happen here because the Fed is independent doesn't work because the Fed is independent in name only.