Castro's "Black Hole" Ate the Money

Tuesday, July 21, 2009
According to Mexico's La Jornada, foreign businesses operating in Cuba are reporting that there's an apparent "black hole" totaling hundreds of millions of dollars that remain unaccounted for by the Castro regime's foreign currency banks.

This has resulted in transactions with the Castro regime being temporarily halted, as a large pile of outstanding invoices have been mounting since January 2009. Foreign businesses are also expressing concern about their Cuban bank accounts being frozen and their inability to repatriate profits to their home country headquarters.

To address these concerns, Raul Castro has announced a set of "brilliant" new rules -- that no one has seen -- transferring the authority to approve foreign currency transactions beyond $10,000 from the Cuban Central Bank to the various public ministries.

But here's the kicker -- no one knows how to recoup the hundreds of millions in the "black hole" and Rauls' new system of payment approval only applies to contracts executed from July 2009 forth.

In other words, the "black hole" ate hundreds of million of dollars.

Coincidentally, this is the same "black hole" that U.S. Senator Byron Dorgan of North Dakota and U.S. Senator Max Baucus of Montana want the U.S. government to finance.