Bloomberg reports today that the postal service has recalculated 2010 losses at $8.5 Billion!

We report it today because we are focusing on public pensions and health benefits here in Minnesota–and a big part of the postal budget covered $5.5 Billion in health care for future retirees. And the CFO says he will not have sufficient cash to pay that fund in 2011 (which has an estimated loss of $6.4 Billion). The postal service has hit the ceiling on borrowing limits. Sounds like it is high time to restructure and privatize the old Pony Express.

And we capitalize the “B” in “Billion” because it is still a huge number. These are Billions of Your Dollars. That You Are Working Harder For Than Ever.

Here is Bloomberg–the full link is below:

“The Postal Service, which forecast a $7 billion loss, said almost two thirds of the deficit, or $5.5 billion, covered health-benefit costs for future retirees. An additional $2.5 billion covered adjustments to workers’ compensation liabilities for interest rate changes. The loss for 2011 will be $6.4 billion, Chief Financial Officer Joseph Corbett said today. (Emphasis Added)

“We expect to go through the year with sufficient cash to continue operations,” Corbett said. “However at the end of the year, we don’t expect to have sufficient cash to pay all of our obligations, primarily the $5.5 billion retiree health payment due at the end of the year.” (Emphasis Added)

The Postal Service has asked Congress for permission to close post offices and eliminate Saturday delivery to stem losses as more people use the Internet to replace letters, print publications and pay bills.

We are not sure what this is: “adjustments to workers’ compensation liabilities for interest rate changes” or how they got to be $2.5 Billion. Our research today yields nothing comprehensible. Do any of our readers understand this–send me an email if you do, please .  kimc@mnfreemarketinstitue.org  

http://www.bloomberg.com/news/2010-11-12/u-s-postal-service-loss-more-than-doubles-to-8-5-billion-as-volume-drops.html