March 18, 2005

fidel's Fortune

The news today was pretty interesting - fidel came out screaming that Forbes magazine had included him on its annual billionaire's list earlier this month, under the special category of 'kings, queens, and dictators.' Since I know someone at Forbes, I'll add a few tidbits.

Here is the background:

First, that Forbes list of billionaires is very conservative. It consists of only what fortune Forbes magazine can really prove. What they can't prove, they don't add in, even if they are pretty sure the billionaire owns it anyway. They have to be legally pristine because, let's face it, these billionaires are the kind of guys who wouldn't have much trouble rousting up the resources to sue if they wanted. And Forbes almost never is sued. Being conservative with one's numbers is the reason why.

But the flip side is, most of these guys own way more than they admit or Forbes can prove. Once in awhile, a billionaire comes along who will open his books if he's asked but most of them are hiding as much of their fortune from Forbes as they possibly can. Part of it is to deter kidnappers (and this is prevalent everywhere), part of it is because they are cheating on taxes (you see a lot of this in the private Anglo fortunes - U.K., Australia, Canada, NZ), and part of it is because they fear jealousy and populist revolts - especially if they live in a country like Mexico that is full of poor people. In the U.S., it's mainly that they just want to be left alone and don't want calls from telemarketers.

The most transparent fortunes are in the U.S. where stock data can easily prove ownership, and the most complicated ones are the private European fortunes which are profoundly old, tangled and secretive (except the Swiss). The most volatile fortunes are the Russian ones - which pop up one day and are gone the next with none looking too savory in origins. The most intransparent fortunes are in the third world - those family cross-shareholdings among overseas Chinese fortunes are an absolute bitch to calculate. And the most muddled and utterly dishonest fortunes are the political ones, like those of political cronies, regardless of where they exist in the world. Politicians' fortunes, themselves, are the worst of all, and among politicians, dictator politicians are truly the most corrupt fortunes on earth.

That brings us to fidel.

The premise of the Reuters news article is that most people would be 'honored' to be on the Forbes list. That's completely wrong - almost all of them yell about it and say they don't want to be on. They slam down receivers and threaten to sic their lawyers when they get wind they are going to make the Forbes list. Happens a lot. But that is a clear sign to Forbes that it is doing its job and getting it right, because this is the way they all act.

What perks up the Forbes antennae with suspicion is something entirely different: when some rich guy calls Forbes up and asks to BE on the list - as Banana King Alvaro Noboa of Ecuador once did. That is its own proof that such a person is NOT a billionaire because no real billionaire would do such a thing.

NOT that these billionaires don't watch that list with utter fascination, mind you. That's their peer list, so billionaires watch and read it very closely for information about their rivals and neighbors. Not too long ago, I heard secondhand that a fidel diplomat approached a Forbes reporter and explicitly asked to see the Forbes file on the Bacardi family, who are of Cuban orgin. Forbes declined. But it showed that fidel was definitely curious about other billionaires.

All this tells me one thing: fidel's screaming about his inclusion on the Forbes richest-people-on-earth list is a pretty accurate sign he's got a huge fortune socked away, because his reaction was so utterly normal - for a billionaire.

What could his inhibition to being on the Forbes list be? He's been on the list before, but this is the first year he came out screaming and drew attention.

I think it's fear. He's on his last legs, he can't take it with him, and he doesn't want it advertised to his lieutenants who are scheming for position at his deathbed, as vultures do, waiting for the roadkill. Not only that, castro could easily anger the beleaguered Cuban people if news got out about his millions, since they have, after all, been told to be contented with a humble rice cooker and be so grateful to el barbudo for it that they never deign to ask about the absent electricity or the missing rice.

There is one interesting line at the bottom of the Reuters writeup that I hadn't expected, in which fidel's press statement declares: "Cuba is the only Latin American country that fights inequality and has the fairest income distribution in the world." This is a lie in itself, with everyone being dirt poor except for castro and his 'special class' nomenklatura with their dollar stores - but can you imagine what Hugo Chavez's reaction to this is? fidel forgetting to mention his little buddy Chavez? It means fidel considers him not quite in his league, a lightweight. For a megalomaniac like Chavez, that has got to sting. One wonders what the nightly phone call between them was like. I hope the two of them get into a fight over this, since Chavez probably actually gave castro "his" fortune. Perhaps with a fight, these two hemispheric problems could solve themselves.

Update: Welcome Instapundit readers. Today is the second anniversary of the crackdown on the 75 dissidents presently still rotting away in castro's gulags. I urge you all to read this post and offer your solidarity with their cause and your support in seeing to their release. Gracias.

Posted by Mora at March 18, 2005 12:46 AM



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» Castro the Billionare from Tobias S. Buckell Online
Fidel Castro made Forbe's billionares list and he's pissed about (since, you know, if you're a communist, you're not supposed to, you know, have an inordinate amount of wealth compared to your comrades and all...) Babalu Blog has more... [Read More]

Tracked on March 18, 2005 02:34 PM

» Rich Communist List - El Maximo Ladrón from Plains Feeder
But at least Cubans aren't being exploited by wealthy capitalists! [Read More]

Tracked on March 18, 2005 10:29 PM

» VULTURES CIRCLE CASTRO'S GOLD from Publius Pundit
I was a little surprised how much attention I got from an essay I wrote for Babablu Blog the other night, but in retrospect it's an important news story as the the Cuban dictator begins to eye the vultures circling. He's been on the list plenty of time... [Read More]

Tracked on March 19, 2005 10:20 AM

» Money, What Money? from Strange Dog
Caught this in the Chicago Sun-Times:Hearing that Fidel Castro was upset with Forbes magazine for listing him as one of the world's richest dictators, Dennis Miller told his CNBC show's viewers, ''Castro says the listing is bogus, because in [Read More]

Tracked on March 31, 2005 11:24 AM

Comments

Does anyone in the MSM not see the delicious irony of fidel being worth a half billion dollars? Why is this not the main story when they write about him? It's hypocrisy, plain and simple.

Most of these rich, leftist niños bitongos ("spoiled rich kids") are the same as him: spouting socialist bullshit about equality and the fair distribution of wealth to the poor -- as long as it's not their wealth -- while making money hand over fist and holding on to it with dear life. "Keep your hands off of my stash."

If it weren't so maddening to see these leftist hypocrites do gyrations around the fact the their god is a half billionaire, it would almost be humorous.

Fact is certainly stranger than fiction.

Posted by: George L. Moneo at March 18, 2005 08:30 AM

What a wonderful gift fidel has inadvertently given us - the rice cooker as metaphor for the misery of the Cuban people. It's really quite amazing.

A most interesting post.

Posted by: Juan Paxety at March 18, 2005 08:30 AM

Last night cagastro had a two hours improvised class on how to use the rice cooker, broadcasted by Cuban National TV.... probably something worth the pain of seeing the guy, to those who, unlike me, can still stomach that sorrowful sight...

Posted by: CB at March 18, 2005 09:02 AM

Rice cooker for you, $550 million (provable) for me! Oh, for a wealthy dictator's life!

When that bastard dies and the lid is blown off about all his evil and corruption, mark my words, that fortune is gonna be a lot bigger than the provable $550 mil. The signs are already there the money-laundry enforcer in the US fined a swiss bank recently for laundering a mysterious $3 bil in Cuba that no one knows how castro could have gotten hold of. Some people think it was drug money or chavez's oil money. castro also makes a lot of money off chavez's 56,000 barrels of daily 'free oil' selling it for millions to Central America at a handsome profit. Right there there's a source of income for fidel. Meanwhile, Cubans cannot turn their rice cookers on for lack of electricity!

Posted by: A.M. Mora y Leon at March 18, 2005 09:07 AM

I am sorry to say that only recently have I become aware of Cuba's true suffering. Thank you, (and Blackfive for pointing me in your direction), for putting it right here in my face with your blog.

I lived at Fort Clayton, Panama, Central America for 3 years and saw first hand what that country had looked like years before compared to what it was when I lived there. It was very saddening. So I'm asking a very serious and honest question, what can *I* do to help the people of Cuba?

Posted by: Teri Michelle at March 18, 2005 09:44 AM

Tough to pin down a net worth when somebody in effect "owns" a whole country.

I wonder what the odds are that Cubans will get the money back when he goes? Probably not likely. Even Arafat was supposed to be worth about $3 billion (or was it $11 billion?) and they can't seem to find any of that.

Posted by: Jay at March 18, 2005 09:44 AM

Good point, Jay. The fortune is calculated in assets - so all the factories castro owns and whatever - and you know they are run-down and undercapitalized - are what the fortune is based on.

If Cuba were to sell them on barbudo's death, $550 mil is all they'd get. What Forbes can't do - it's simply impossible - is calculate what kind of money is sitting swiss accounts. Usually, compared to assets, it's a lot smaller in any case. But I suspect not in the case of castro. That $3 bil money laundering fine is a sign of something going on, that's why I think the fortune is actually much larger.

Posted by: A.M. Mora y Leon at March 18, 2005 09:57 AM

I think you guys missed the best part of this article.

"Cuba is the only Latin American country that fights inequality and has the fairest income distribution in the world, the statement said".

12 dollars a month have never sounded so good. And the equality on the island. Man truly a wonderful paradise.

Posted by: Jorge at March 18, 2005 10:40 AM

The day of reckoning will come for this meglomaniacal murderer, just as it has for so many other tyrants. I only hope that, as he lays on his deathbed, the faces of those he has murdered come to visit him. For all his protestations of marxist aetheism, that little Jesuit educated boy still hides inside there somewhere, and must tremble at the thought of approaching St Peter, the gate, and the book of life.

Posted by: veryretired at March 18, 2005 11:49 AM

Veddy interestink. I had never given much thought to the Forbes list or how the people on it would feel about being included. But this makes perfect sense.

Castro's statement is just fascinating, because it just looks wacky for him to be complaining. There's nothing obvious for him to be complaining _about_ as far as ordinary observers are concerned, but clearly he's upset about something.

I had to explain this to a friend of mine: "Castro's made that Forbes is blabbing to the whole world how much money he's stolen from the Cuban people to amass into his personal fortune. It undermines his image as a man of the people."

*chuckle*

Posted by: Anne Haight at March 18, 2005 12:27 PM

My only hope is that Castro does not die in his sleep, but rather in front of a firing squad, like Ceaucescu.

Posted by: John at March 18, 2005 12:59 PM

I think I'd prefer he went like Mussollini.

"The fortune is calculated in assets - so all the factories castro owns and whatever - and you know they are run-down and undercapitalized"

And obviously he hasn't "reinvested money in the business" so it had to go somewhere.

Ref the kidnapping/billionaire thing, back in the 60's? 70's? there was a minor stock market crash that hit Perot's EDS had, he went from something like 1.5 billion to 600 million or so almost overnight. The press asked him what it felt like to no longer be a billionaire and he said "fine with me, I'd still never be able to spend it all and it took me off a lot of kidnapper's lists".

Posted by: Jay at March 18, 2005 01:44 PM

castro can be correctly labeled under each category --- king, queen, and dictator.

Posted by: bernie moro at March 18, 2005 02:34 PM

To: Teri Michelle
I think we ALL agree that the fact you have been awaken to our true suffering is such an inspiration to any of us Cubans.
Believe or not that is one of our toughest battles. To combat a very effective propaganda machine with the few resources we have.
Combating ANY cult is an uphill battle that very few can sustain. And the Castro cult is one shrouded in myth, romanticism and populist bullshit.
VERY DIFFICULT TO COMBAT!
Sometimes our frustration can only be vented by preaching to the choir. When we reach someone like you it is of tremendous importance
YOU (and people like you) telling friends family (or any one else willing to listen ) the truth about our struggle is of TREMENDOUS importance.
I (and I am sure all of the Cubans in this forum) thank you for your offering BUT… you are ALREADY doing something to help.
As far as Castro's wealth...
How silly is this? How can he deny ANYTHING about his wealth? The man OWNS Cuba.
If Fidel Castro decides tomorrow that the HABANA HILTON (I refuse to call it by any other name) will be his next home.. Who is going to stop him?
Case in point : The Marina Hemingway was reconstructed by an entrepreneurial Spaniard who forked 20+ million of his families money into the project.
Two years ago, Castro got a wind of the guy’s profitability and decided he was making WAY too much money and the deal that had been made (between Cubanacan & the Spaniard company) was NOT a good one.
Resolution? The Spaniard is set up with ½ kilo of Coke and a couple of under age girls. His ownership confiscated and his ass thrown in jail. Then he is forced to sign a release. His freedom for his ownership in the resort. Doesn’t take a genius to see what the poor bastard was going to do.
Now he is suing Castro in international courts, yeap, good luck to him.

The money FORBES has reported is that which is attributed to him in hard liquid wealth in foreign countries. His TRUE wealth can be just summarized in one sentence.
Cuba’s GNP !


Posted by: KillCastro at March 18, 2005 05:13 PM

I appreciate both Kill Castro's passion and Teri Michelle's awakening. I am a gringo from New Jersey who moved to So. Fla. 25 years ago and didn't know nuttin' about anything Cuban when I first came here. My education in, and experiences with Latin American culture very much started with my exposure to Cubans in Miami. It fascinated me: the music, the food, the sense of family, the industriousness. Putting it in context really had a profound effect on my sense of freedom and my identity as an American. I have a very genuine respect for the accomplishments of exile Cubans and what they have done and the flavor and influence they added to make a more or less sleepy Florida city into a Latin American capital in a sense. Honestly, I wish more North Americans could see the travesty to humanity the the castro regime has inflicted on the Cuban people over the last 46 years. In 1994 daily pictures and reports came over the airwaves of people leaving their island prison. I remember seeing a picture of some poor guy on his hands and knees on only an over-inflated innertube with only a piece of burlap on his back. It broke my heart. I remember thinking: my god what kind of place is this that these people would leave whatever it is they had behind and the sense of desperation and their hope of, please God, there must be something better! The picture of that is as clear in my mind as it was ten years ago. It is a symbol of everything I have come to learn about castro's Cuba.

I hope the liberation of Cuba can begin before castro's death which I pray is soon and reconstruction of the pearl of the caribbean can begin very soon after.

I very much support the message of this blog, your humor and anything that can spread the truth about what is happening in Cuba and currently in Venezuela.

Best regards to you all.

Posted by: Mistah Chestah at March 18, 2005 10:51 PM

Posted by: Moses at March 19, 2005 10:18 PM

Querida Teri:

The one contribution that we all can do is spread the truth to as many people as we can. This means to research as much of what happened, and spread the truth through word of mouth, letters, emails, blogs (like Val!) and whatnot. The BIGGEST problem with what's facing Cuba is that either not enough people know the truth, or that not enough people care (think West Wing's fiasco). Teri, in a nutshell: get the facts and spread the truth.

Posted by: Songuacassal at March 20, 2005 12:24 AM