They shouldn't cut the USPS totally, just drastically reduce it. Reducing 1 gov job lifts the burden of several taxpayers.
If the USPS is unable to restructure it's business model and debt, then you are correct, the government will have to bail out the post office. Since the government is broke, they will have to borrow the money from China, so to answer your question the Chinese will essentially bail out the PO. Damn shame isn't it?
Quanity over quality is part of the problem with government. More workers doesn't make the service better, cheaper, or less burdensome.
I'm willing to bet you could the number of USPS employees by 1/3 and there wouldn't be a disruption in service (more so if they only delivered actual maul and not junk).
Come on Lilfido, half that junk mail is all financial scams and credit card offers with usury rates of 35%. I thought you being the ultimate liberal wouldnt want such companies "taking advantage" of the stupid people here in the states. Remember, we have to protect everyone from their own stupidity...