Unfortunately (for you) Madrid are the biggest club in the world. I dont know about class, but in the end you have to look at the trophies. And Madrid, unlike Liverpool, dont just do good in Europe, but have won their domestic leagues as well.
Also we dont tap up players, but buy them and pay the selling clubs well. We are not funded by the government but aided by them. We are funded by the scores of sponsors and fans around the world who in some way contribute. And all this is also legal.
Yes, I too would like the club to get more youth players into the first team. But right now we've two in Iker Casillas and Raul (although he was for Atletico, we signed him very early and he developed into the player he is today, here). And both are world class.
Madrid have never said they've started negotiations with Ronaldo. It was just the media. United's complaint to FIFA was baseless and pointless.