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Editorial Note: I was very happy to recieve several letters this last month regarding the magazine, as your input is always helpful. It was a busy month as well, with the charity picnic and many other things happening at the ARCR. Mr. Miller thouroughly covers the event in his Presidents report, and I would just like to add my appreciation to all the people and sponsors who helped out with the picnic, and just in general help us at the ARCR. In regards to the magazine, thanks also to the many contributors who continue to make it possible every issue. - Ryan Piercy
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This magazine has been published every two months for 8 years as the ofďŹ cial communications media of the Association of Residents of Costa Rica. Our organization provides service to thousands of foreigners who have chosen Costa Rica to reside for short periods or for permanent residence. Over the last 20 years the Association of Residents of Costa Rica has been offering reliable SERVICES, INFORMATION and ADVOCACY to Costa Rica’s foreign residents. We have the experience and ability to help you with your residency application, immigration, business and ďŹ nancial management, real estate purchases and rentals, property management, insurance, pet importation and much more. If you wish to place an ad in El Residente, please contact the ARCR main ofďŹ ce.
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Presidents Report Bob Miller The topic this month is the April 23rd Picnic...It was successful! It brought us a valuable and rare commodity. Funds for charities. The group will have an extra four hundred and seventy-five dollars. This works out fine. The people who attended had a good time. The people who made it happen let out a long sigh of relief. For three months members of the committee Earl Tomlinson, Terry Renfer, Elsa Miller, Attilio Gilberti and Jose Carter along with Annabelle from the ARCR staff were all worrying about the success of this venture. Well thank God it all went well. Oops I am sorry, now readers who are strong believers in nonsectarianism forgive me for this lapse in political correctness. Please no emails. I will try to be politically correct from hereon. Thanks to Attilio for obtaining the site and a special thanks to the Banco Cuscatlan for making it available. The kids were really appreciative of the site, especially since they were told to bring swim trunks. They did and the swimming pool got a workout. Of course there were adults who brought their swimsuits. There was one young lady who forgot to bring hers, but went in anyway.
Could it have been Brittany? Special thanks go to Earl and Terry who made an extra effort and obtained the caterer, who did an excellent job with the Hot Dogs, Hamburgeesas and frutas. There was plenty of food and the prices were reasonable. One of the most popular activities was BINGO. The ringleaders hi this activity was Earl and Nuria Carter, Jose’s wife. Earl gave the numbers out and Nuria translated them into Spanish. It must have worked out right. I heard no one complain. The winners and prizes are described in another article elsewhere in this issue of El Residente by Ryan Piercy. Regarding the prizes special thanks should be given to Cindy who was instrumental in obtaining them. Thanks Cindy. Continued on page 4...
COVER PHOTOThe Costa Rican National Tree: It was in 1959, during the presidency of Lic. Mario Echandi Jiménez, that the Guanacaste Tree was declared the national tree of Costa Rica. One reason it was chosen was to pay homage to the Annexation of Guanacaste of 1825, when it became part of Costa Rica by choice. ‘Guanacaste’ comes from the Náhuatl language, and means ‘Tree of the ears’ because the fruit of the tree looks like a human ear. This immense tree can be found throughout the lowlands of Guanacaste province, and to many citizens the vast shadow it casts is symbolic of the protection that the state provides to all Costa Ricans. Certainly the tree itself casts a great shadow that helps protect the cattle from the sun, as well as provide food for they eat its branches, leaves and fruit.
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One of the most popular areas on the site was under the supervision of Alan Weeks. This of course was the Alcoholic and non-alcoholic drink area. Alan says he is a non-imbiber, but I noticed he never left the area., and that every time Terry and Ryan tried to help-out. Alan wouldn’t go very far from the bar. Ah well.
Now one of the key contributions is the sale of tickets for entry and purchase of food and drinks. This was ably done by Elsa, Terry and Earl. Thanks Elsa, Terry and Earl.
Lyn Smith and his good wife Stefanie were in attendance. A plaque was presented to Lyn in appreciation for his efforts in starting the ARCR Library. It is a major benefit to the members. Thanks Lyn.
To those who came we hope you had a good time. We hope to have an even better picnic next year. I will close by saying thank God it turned out the way it did. Oops, slipped again, so I am not politically correct.
I must also give thanks to our Abogado, Jose who gave an excellent discourse on our charity activities. He toted the books and supplies to and from the site. If you enjoyed the Popcorn, that was through the efforts and courtesy of Jose. Thanks Jose
A great deal of appreciation to the Cuscatlan staff at the site who received the tables, chairs and tent, then helped set them up. Helped take them down for return to the suppliers, and most important cleaned up. THANKS
Because of the rain, which held off until the last hour of the picnic, I must add a special thanks to Attilio who provided the tent under which most of us were sitting when the perfect Also thanks to Dee and George Vaughan. They were the day was coming to an end. Thanks Attilio chief librarians who kept the book table in order. We had plenty of books and those that bought books had good I must also thank the chap who sat and supplied ice cream to all of us. Thanks You Helado Man buys.
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Association of Residents of Costa Rica Would like to thank the sponsors of the 2005 annual charity picnic. Many thanks are owed to those who helped out at the picnic, as well as to all those who attended this year to make it a success. But especially thanks are owed to the sponsors who helped make the event better with the prizes they offered for the Bingo and raffle. Several bingo prizes were donated, and thanks are owed to Tony Roma’s, who gave a ¢10,000 gift certificate for the grand prize. Other prizes included dinner for 2 at La Condesa, and a prize from veterinary Dr Ludwig Starke. Especially successful was our Raffle, with tickets selling for just ¢2000 each. Here are the winners of the raffle, and remember, the next raffle will be held in September, so if you are interested in winning some great prizes, don’t forget to watch for tickets in the office….
2005 CHARITY RAFFLE winners! PRIZE dinner for 2 at HOTEL LA CONDESA in the Patio de Los Condes dinner for 2 at HOTEL LA CONDESA in the Patio de Los Condes 3 days 2 nights at HOTEL CANCIONES DEL MAR in Jaco Rental Car from ALAMO RENT-A-CAR for a weekend One night at HOTEL VILLA CALETAS in the Central Pacific Dinner for 2 at HOTEL HERRADURA in Rest Sancho Panza Tour for 2 to Isla Tortuga with BAY ISLAND CRUISES Teleferico Tour for 2 persons from RAIN FORREST TRAMS Tour for 2 of your choice with MARBELLA TOURS Upholstery cleaning from PRO CLEAN Laser Teeth Whitening from PRISMA DENTAL Diagnostic consultation from CLINICA DENTAL SILVA-ESCALANTE
WINNER Joan Dewar Esther Sibaja Marilynn Walker Millie Blalock Gregory Kearney Aldomar Earl Tomlinson Brenda McManaman Carmen Poyuelo Eugenia Vargas Ligia Torres Gregory Kearney
And for providing us with the location, many thanks to
All proceeds go to the ARCR Charity Fund!
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IN THE NEWS
Immigration Offices Raided by OIJ The Ministerio Público and the Organismo de Investigación Judicial (OIJ) made special call on the offices of the Dirección General de Migración y Extranjería in La Uruca in April to affect a series of searches. The police action is based on a complaint that dates back three months relating to irregularities with the issuing of residencies and visas to a Orientals. Police arrived at the immigration offices and remained there for more than 10 hours, taking with them a large quantity of records and files to be closely scrutinized at the offices of the OIJ. More than 20 judicial agents, a judge and a prosecutor took part in the search that included also the offices of the director, Marco Badilla. The search also included the immigration offices at the Juan Santamaría airport and the travel agency Orientur, located in San Pedro de Montes de Oca and the home of the owner of the travel agency. Judicial agents are looking for what they believe is a network that issues Orientals phone documents to allow them to obtain their Costa Rican residency, that include minors as well. Marco Badilla, Director of Migración y Extranjería, said in a press conference after the police action that no formal charges have yet been made against any person or immigration official and that his office is offering complete collaboration to the judicial officials. Badilla told the press that for the moment they have no one person or persons that could be part of the network, but is interested to clear this up and is open to any type of investigation to that end. Miguel Quesada Niño, vice Minister of Gobernación, which Migración is part of, said that the search by judicial officials is a direct result of reports of irregularities in Orientals obtaining visas as reported by a local television station last year. Many foreigners who arrived at the immigration offices to renew their visas were told to come back the following day. The situation was the same for those there to get a new passport or other immigration matters.
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Association of Residents of Costa Rica We are looking for more volunteers to help with the Charity Committee and upcoming events. We have many ideas and are looking to work directly with other groups. If you are interested please contact Bob Miller or Earl Tomlinson at the ARCR (233-8068 or 221-2053) www.arcr.net Canadian Club Calling all Canadians...Join us on the Third Wednesday of each month for our luncheon and meeting. Find out all about our various groups and charity work around the country, and meet some fellow Canadians Call Bob or Elsa at 228-1250 www.canadianclubcr.org Bird Watching Club The Birding Club of Costa Rica sponsors monthly trips to observe local and migrant birds in various areas of the country. For more information contact us at 282-5365 or at costaricabirding@hotmail.com
Send us your club news or activities for free publication in this column
PC Club of Costa Rica This computer Club meets on the third Saturday of each month at Pan American school, in Belen, 9 am to Noon 2 months Free Trial for newcomers For information call Chuck Jennings. Phone 266-0123 www.pcclub.net Republican Abroad The Republicans Abroad of Costa Rica meets the second Tuesday of each month Contact Francis 286-6060, 386-1420 Radio control Sailing Club Meets at Sabana Park Lake For information contact Walter Bibb. Wwbbsurf40@yahoo.com
The Toastmasters Club Wine Club of Costa Rica Improve your public speaking skills 1st and 3rd Monday of each month 9 A.M. Contact Natalie 296-3059 Democrats Abroad The Democrats Abroad of Costa Rica meets the last Saturday of each month at The Grand Hotel Downtown. The business meetings begin at 11 a.m., lunch at noon, followed by a guest speaker at 12:30 p.m. For further information, please contact Ruth Dixon 494-6260 or Jo Stuart 225-3101 Golden Era Movies A film club: Classic films, World Cinema, PBS, BBC, books, discussion Michael Bowman Phone 272-5492
Please mark your calendars The wine club usually meets at 1 P.M. on the last Sunday of each month. Join us to tantalize your taste buds and expand your education on one of the finer things in life. For more information on upcoming events please contact us Phone 279-8927, 257-2223, 285-1276 Women’s Club of Costa Rica Founded in 1940. The Women’s Club of Costa Rica is one of the oldest, continuously operating service clubs in the country. The name has changed in 63 years, but our motto “friendship and service” has remained the same,. An English-speaking organization, our club has approximately 350 members, originating from over 30 countries. Please join and help us to continue to grow. Remember that you can contact us or keep in touch through our website www.wccr.org White Artist colony (for David & Julia)
Newcomer’s Club A women’s social organization that meets the 1st Tuesday of each month. We welcome English speaking women who reside in Costa Rica. New and long term residents-contact Carol phone 232-3999
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The colony is now holding a concert on the third Saturday of each month. All are welcome For price and details, please E-mail bwhite@forjuliaanddavid.org
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Living in Costa Rica ..and U.S. Taxation Randall J. Lindner E.A. U.S. Tax and Accounting For U.S. citizens living in a foreign country, there is little or no relief in income tax filing requirements. Often we are faced with new requirements, new situations, and given wrong advice from fellow citizens. As a professional U.S. Income Tax preparer specializing in U.S. citizens living in a foreign country, I have provided answers to some of the most frequently asked questions. Question:. Now that I am living in Costa Rica, do I need to file a U.S. income tax return? Answer: Most U.S. Citizens must file an annual income tax return on their worldwide income. As a general rule, if you were living is the U.S., and think you need to file a return then, you are probably correct. It is better to file than not. Question: My only income is from a Costa Rican company and I pay taxes to Costa Rica. Do I have to include this income on my U.S. tax return? Answer: U.S. citizens must include all worldwide income on their tax returns. This income could qualify for the $80,000.00 foreign earned income exclusion, but the exclusion is not automatic. You must include the income on your tax return then, exclude it by using the IRS form 2555. If you do not meet the requirements for the exclusion, then the tax you paid to Costa Rica could possibly be taken as a foreign tax credit.
Question: I have my own small business in Costa Rica. I work as a self employed person. My business is not incorporated. Does this income qualify for the foreign earned income exclusion? Answer: Yes. This income can qualify for the exclusion just as if you were working for a U.S. employer. Caution: The exclusion is for federal income tax only. You will still be required to pay Self-Employment Tax (Social Security and Medicare taxes) on your profits. Question: I receive dividends from a Costa Rican company. Are the dividends “foreign earned income” and do they qualify for the exclusion. Answer: No. The foreign earned exclusion does not apply to income such as interest, dividends, capital gains, pensions, annuities and gambling. The exclusion applies strictly to earned income. In other words, your wages, salaries, bonuses, commissions, fees and other compensation for services rendered. Note: If you own 10% or more of a foreign corporation, you are required to file with your individual income tax return IRS form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporation). Question: I receive interest from my Costa Rican bank account. Do I have to report this interest on my U.S. income tax return? Answer: Yes. U.S. Citizens must include in income,
Question: I live in Costa Rica and work for a U.S. Company. Does this income qualify for the $80,000.00 foreign earned income exclusion? Answer: If you meet the other requirements for the foreign earned income exclusion, the wages you receive from your U.S. employer can also be excluded. Your employer is still required to withhold Social Security and Medicare on your wage. Continued on page 9...
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their income received worldwide. This includes interest and dividend income. In addition, if the aggregate value for your foreign accounts is greater that $10,000.00, at any time during the year, a Report of Foreign Bank and Financial Accounts must be submitted to the U.S. Treasury Department. Question: I transferred money from the U.S. to Costa Rica. Is there anything special that I need to do? Answer: If a U.S. Citizen has a financial interest in, or signature authority over any financial accounts, including bank, securities, or other types of financial accounts in a foreign country, and if the aggregate value of these accounts exceeds $10,000.00 at any time during the year, the accounts must be reported to the U.S. Department of the Treasury. Question: Last year I got married to a Costa Rican citizen. Can I file a joint return with my spouse who is not a U.S. citizen? Answer: Yes, but in doing so, you make the election to report your income and you spouse’s income worldwide. If your spouse does not work,or has very little or no income, it could be to your advantage to file a joint return. If your spouse does not have a Taxpayer Identification Number, one must obtained.
Question: My Costa Rican wife, has a child from a previous marriage. The child is living with us. Can I claim the child as a dependent on my tax return? Answer: To be claimed as a dependent, the dependent must be a U.S. citizen or a resident of the U.S., or in certain cases a legally adopted child of a U.S. Citizen. Question: I have been living in Costa Rica for years and have not filed a tax return. What should I do? Answer: It is to your advantage to seek professional help to determine whether or not you do need to file. Question: My Business is incorporated as a Costa Rican S.A. Currently it is not making a profit, and I am not receiving a paycheck. Does this have to be included on my tax return? Answer: Yes. If you own 10% or more of a foreign corporation, you are required to file with your individual income tax return IRS form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporation). This includes inactive S.A’s and corporations not making a profit. These are only a few of the most frequently asked questions. If you are confused and need my help, do not hesitate to call me at 288-2201.
May-June, 2005
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Welcome to the Bubble Economy 2005 Alan Weeks Welcome to the Bubble Economy 2005 The stimulative monetary policy of central banks around the world for most of the period since the 1998 Asian financial crisis has resulted in a global economy ‘awash in cash’. As an unintended consequence, every asset market we can think of is now showing a bubble-like behaviour.
UNINTENDED CONSEQUENCES In trying to soften the impact of the enormous damage done to the US economy through the excesses of the 1990’s, and keep the 2001 recession very mild, the US Federal Reserve (FED) continued ‘pumping’ cheap money into the system and kept short-term interest rates below the inflation rate for more than 3 years. This obviously ‘fueled’ the consumer-spending binge. Many believe it is truly appalling that the average North American consumer has become so ‘obese’ on consumption of all sorts, as evidenced by the ballooning personal debt. It is also unfortunate that, as soon as the FED raises interest rates enough to remove excess liquidity and get real rates back to “neutral”, the economy is slowed, “overheated” markets turn ‘sour’, and weak companies and countries become vulnerable. These issues will be discussed later. One other consequence of this spending binge is that Chinese exporters have been earning more billions of dollars per year. This required the central bank of China to “have its printing presses working overtime to churn out” the Yuans needed to buy all those extra export dollars in order to prevent any currency appreciation. However, in this closely intertwined global economy, the many billions earned by Chinese exporters were likely recycled into Fannie Mae bonds, lowering US mortgage rates. This then
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gave a couple in Rockville (or Little Rock) the wherewithal to spend an extra $50,000 for their dream home. The ease of capital flows also allowed billions of extra Petro-dollars to make their way quickly into US Treasury Bonds, lowering yields, and into REIT’s that have been bidding up the prices of Manhattan real estate.
THE OIL BUBBLE Speaking of Petro-dollars, you’ve probably noticed that oil prices are hovering near a record $55 a barrel level again. That $2.50-a-gallon price you see at the gas pump has all the markings of an oil bubble. But this is one of the bubbles that will not be going away in the foreseeable future. Nor will the high priced energy needed to heat and cool your home and office. How did we let ourselves and our country get into this seemingly irreversible situation? Obviously, the American Petroleum Institute forecasts since the late 1980’s that the US production of energy was in permanent decline while consumption per capita was rising, were totally ignored. However, by the early 1990’s, the economic boom in China was well known to international businessmen, economists, and investors alike. And, by the mid 1990’s manufacturers, retailers, and consumers were taking full advantage of the Chinese export boom. The need for an escalating amount of oil and other commodities to continue ‘fueling’ this boom should have been quite predictable, at least by those in related industries, institutes, and federal agencies.
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Moreover, the Iraqi invasion of Kuwait and the subsequent destruction of the Kuwaiti oil fields during the first Gulf War, should have been a strong ‘wake-up call’ that dependency on the highly volatile Middle East for US oil needs was not a good longterm policy. Why then did the US Government fail to develop a comprehensive energy policy, which could have been so much more easily implemented as the “good times started to roll” in the 1990’s? And, many individuals can only blame themselves for their gas-guzzling vehicle choices.
REAL ESTATE BUBBLES In recent financial publications, (1,2) the parabolic curve in real estate prices have been plotted for dramatic illustration purposes. The total asset value of US real estate has already reached 140% of the US GDP. It is an interesting parallel that the stock market bubble reached 140% of US GDP at the end of 1999. Many believe that those who don’t think there is now a bubble in quite a few segments of the real estate market must have their “head in the sand”. Another sign of the housing bubble is the gap between the monthly costs of buying a home vs. renting, has been widening at an accelerated pace. In the hot markets, this gap is now more than 50%. And, this market is now so hot, that a day trading-like element has apparently evolved. There are reports that taxi drivers in the hot areas are talking about the million dollar condos that were flipped several times before construction was even completed. And the percentage of home purchases solely for investment purposes has now increased to 30% in the hot markets. A sharp rise in mortgage rates would “kick the props out” from the real estate markets.
BOND MARKET BUBBLES A bond-market bubble and its two progeny, the junk-market and emerging-market-debt bubbles have also been building for quite some time. Some, including Alan Greenspan, pondered over the fact that long-term interest rates had failed to respond to the six previous increases in short rates by the FED. In the junk-bond market, the interestrate premium (“spread”) that borrowers have to pay over “risk-free” US Treasuries are still near historic lows. And, emerging-market bond market spreads that peaked at more than 10 percentage points at the time of the Argentine debt crisis in 2001, fell to a low of 3.3 percentage points in early March. In addition to the huge surge of re-cycled
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Chinese and Petro-dollars keeping long rates near historic lows, the FED had been assuring us until very recently, that inflation was under control. However, raw material and energy prices have been rising now for well over a year. Initially, many companies were cautious about passing on cost increases. But, they are now moving more aggressively to raise prices. Recently, prices have been increased on everything from plastics in toys and packaging, to synthetic rubber in tires, to fuel, fertilizer, and weed killer for farming, to shoes in Brazil & China. It is apparent the bond market isn’t buying the tame-inflation story any more as yields have just jumped up sharply. The rapid change should come as no surprise. Late last year, Greenspan warned: “Rising interest rates have been advertised for so long and in so many places that anyone who has not appropriately hedged this position by now obviously is desirous of losing money”. In fact, many believe the bond markets were mis-priced for both inflation and risks.
WHITHER THE STOCK MARKET The recent increase in consumer prices and borrowing costs, plus the out-of-pocket drain of high energy and gasoline prices, should slow consumer spending significantly. This would ‘chill’ economic growth. These events, plus the commodity cost squeeze, would slow corporate earnings considerably. The fact is, FED rate hikes usually mean tough times for stocks. Did you realize that eight times since 1929 when the FED matched current rate increases, the S&P 500 stock market index was down an average of 7.5% a year later? One could argue that stock prices, as a multiple of earnings, are not yet well above historic averages. But, the fact is companies have been under such enormous pressure to maximize profits that they have used draconian cost cutting measures, including massive layoffs. Rarely, however, have we seen actual good expansion in gross corporate revenues. By now, many companies have run out of items to cut in order to keep putting a “pretty face” on otherwise ugly results. In addition, Robert Arnott (3) believes stocks are more richly valued than many investors realize. He contends the true corporate earnings are far lower Continued on page 13...
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than reported. He urges investors to figure in the cost of employee stock options, the under-funding of corporate pensions, and other aggressive accounting moves, that may inflate published earnings up to 25%. Also, knowledgeable people are very uneasy seeing ‘gobs’ of money being loaned on easy terms to firms engaged in bidding wars for telecom and software firms, as offering prices seem to be grossly inflated.
THE COMING CRISIS When the FED raises interest rates as they have been, and expect to continue doing, trouble usually follows. Remember, in 1987 the stock market crashed. Then the US Savings & Loans failed. In 1990, the recession commenced and the housing bubble burst. In 1994, Orange County went bankrupt and the Mexican currency devaluation ravaged its economy. In 2000, the Nasdaq Stock Market bubble burst. And, as mentioned earlier, a sharp rise in mortgage rates would “kick the props out” of the housing market. Wise people expect this will happen by midyear. This should put over-stretched individuals
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and leveraged speculators in a real bind. Are markets, therefore, now due for some kind of crisis? “It seems likely,” concludes a report from the ISI Group (4). “Whenever the FED tightens, borrowing costs rise and the economy slows. If a company or a country is already weak, the combination of higher interest rates and reduced economic activity just tips them over.” Domestically, the expected significant slowdown in consumer spending should have a widespread impact, particularly on already financially strapped airlines and auto industries. In Latin America, it is expected that the overleveraged countries not flush with Petro-dollars, would be the most vulnerable if and when interest rates jump and economic activity slows. In addition, those countries dependent on tourism should also be adversely affected by any significant spending slowdown.
Please be prepared for tough times ahead. For more details, please contact Alan Weeks at 256-5848
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ARCR: Online and Updated As we move further into the 21st century, we are continuing to look for ways to advance the ARCR, and our presence on the Internet is a vital part of this. Many of the past members may not be aware of all the new services offered by ARCR online, so we though it pertinent to update everyone. For any of the items below, simply visit us at www.arcr.net RENEW or JOIN ONLINE
ARCR FORUMS It has only been about a year since this feature was added; yet we already have well over a thousand participants in our forums. What is a forum? It is a public chat area where people can pose questions to have answered by others, or simply post thoughts and experiences for others to read. The Forums are broken up into several topics on Costa Rica, including Living or Retiring, Moving to, Residency, Travel, Goods for sale, Real Estate, and so on. They are completely free (though registration is required) and
For something as easy as renewal, or if you have a friend or relative looking to join ARCR, it is no longer necessary to make that trek into the ofďŹ ce, or wait long months for the check to arrive by snail-mail or the back of a whale from Miami. Now with either Visa or Mastercard/Eurocard you can do either via Internet in just minutes. Processing is secure, and is done within a few days to ensure no double billing or errors happen. Eventually we hope to make add more services to this payment method, but as many of you know, that may be a long and difďŹ cult process here in Central America. Still, we will keep trying. Continued on page 15...
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we urge you all to join on. It is a great way to meet people, and help out others at the same time. Although visitors can access and read some areas, others are restricted until you have ‘validated’ your email. This is to prevent somebody providing false information in order to ‘spam’ the members. Validating is done by registering, then waiting until you receive an email in which a link provided must be clicked on, and pow! You’re in!
ARCR EMAIL Due to the problems people were experiencing with various providers, especially with small mailboxes, we decided to offer this free service providing 40mg of space. Though with the latest ‘battle of the emails’ such as googlemail offering much
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more space than we could this hasn’t been as used as expected. Still it is available for those who are in need.
CALENDAR Due to the problems of keeping people updated on events and so forth, we have added an interactive calendar where we will be posting upcoming events, shows, seminars, and so on as a public service. Best of all, if you are a member of another club, you will be able to add your clubs upcoming events into the calendar, in order to help promote yourselves. Several groups have already joined on, and the calendar pages are beginning to fill up. We hope as time goes by people will become used to checking in if they are looking for Continued on page 16...
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something to do, or just want to get out and see some new or known faces.
MORE… We also have several other plans in the works. One of great importance is to be able to send a monthly email newsletter as we have in the past for reminders and so forth. Unfortunately with the internet of today and the problem of spam (we ourselves receive several hundred per day ) we have had difficulty in being able to do so. While we hope the calendar will help somewhat, our goal is still to discover a way to accomplish an email without disrupting the net-waves and bringing the spam cops down on us. If we are able to overcome these little details we will inform the members.
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…and also in the works will be a business network, where you will be able to easily go and find those businesses or services you are looking for, based on the experiences of each other, the discount providers, other members who have businesses here in the country, and so on. This is in order to help each other patronize the businesses that are working with us, or those of our own members. We are also open to other ideas as always. Soon you will be able to receive the El Residente in digital format (by email for example), and who knows what other wonders we will be able to accomplish if we just put our minds together. I hope in this way we can continue to serve our members better than ever. Ryan Piercy
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Wild Side XXV A Ribeting Sight Ryan Piercy They are bright, beautiful, colourful, but they also bring a new meaning to the word ‘croak’ in relation to frogs. They are Dendronbatidae, the Poison Dart Frogs. Costa Rica is home to seven of the species, three of which are of the bright boldcoloured individuals. Poison dart frogs acquired their common name due to the fact that the Chocó Indians in Columbia use the venom from these creatures to poison the tips of their blowgun darts. Common accounts refer to the Indians impaling the frogs on sticks, and slowly roasting them to cause fear. Bubbles of poison form as the frogs skin starts to blister. Dart tips are prepared by touching them to the toxin, known as batrachotoxin, or the poison is collected and stored in containers to ferment. A poisoned dart is strong enough to drop a bird or monkey instantly. The frogs with more potent toxin each have enough to prepare, and kill, up to 50 humans. Fortunately Costa Rica doesn’t have this particular frog, nor Chocó Indians to use them.
than some species as they are active during the day. Tortuguero is a good location to see them, and the guides there can help you locate them. Of course just because they’re poisonous doesn’t make them all bad. Through research scientists have found some 300 new alkaloids from frog skin, including those from the skin of the poison dart frog. Many of these toxic alkaloids have unique effects on nerve and muscle. For that reason, the frog toxins have become important tools in biomedical research aimed at better understanding and treatment of neurological and muscular disorders. Someday, a poison dart frog may actually save your life. Medical advances are only one of the reasons to protect flora and fauna, and unfortunately loss of habitat risks the extinction of this and many other species. Hopefully people will continue to support a preserve the rainforests, which hold many valuable secrets for science in their folds. And who knows for what other reasons that frogs were held in high esteem by the ancient races of this continent, now lost to the ages.
Still one needs to take caution in Costa Rica, and it is best not to handle frogs or toads, especially if you don’t know the species. As many know, bright colours often warn us of poisonous species, but bright colours are not always mandatory either. They are nice to see however, and definitely worthwhile visiting in their habitat. If you are in the lowland rainforests or damp areas, keep your eyes open. Here they generally feed on ants and small termites, and can be easier to find
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LEARNING THE LANGUAGE - Christopher Howard Appearances can be Deceiving
When learning Spanish it is important to try and use new words you hear to help you memorize, but it is also important to carry a small pocket dictionary to make certain what you heard means what you think! Appearances can be deceiving! Below are some of the Spanish words most commonly misused by native English speakers.
Acostar – This verb looks like it means ‘to accost’. It actually means to lie down or ‘to go to bed’. La muchacha se va a acostar. The girl is going to bed. Afección – This word does not mean ‘affection’. It usually refers to a medical condition. The Spanish word for affection is cariño. Asistir – Doesn’t mean to assist but ‘to attend’ in Spanish. La muchacha asiste a la universidad. The girl attends the University. Cargo – Means job or position, and not the English word cargo. Carga is the word used to denote a load or shipment. Complexión – Is not your skin texture, but your physical shape or ‘build’. Estructura is a synonym in Spanish. Cutis is the word most commonly used for complexion. Copa – Refers to a glass for drinking alcohol. Taza is the correct word for cup. Embarazado – Again, this word does not mean embarrassed but ‘pregnant’. Me da pana or estoy apenado are the best ways to say you are embarrassed in Spanish. Enfrente de – Does not mean in front of but ‘across the street’ or ‘facing’. Frente a means ‘in front of’. Éxito – Looks like the word exit, but actually means ‘success’. La Salida is the word for ‘exit’ in Spanish.
Sometimes it’s one word of a slogan that changes the whole meaning. When Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to say “It won’t leak in your pocket and embarrass you.” However, the company mistakenly thought the Spanish word “embarazar” meant embarrass. Instead the ads said “It won’t leak in your pocket and make you pregnant.”
Here is your Costa Rican expression or tiquismo for this week: “El guaro no se hizo para lavar” literally translates as ‘Guaro (an alcoholic beverage) was not made for cleaning’. Lovers of Costa Rican moonshine use this phrase to justify their vice.
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El Residente Update Jay Brodell- AM Costa Rica www.amcostarica.com
Pacheco wants outside look at U.S. free trade treaty President Abel Pacheco is kicking the free trade treaty with the United States to a committee. The president said Tuesday that he would ask a fiveperson committee to examine the treaty and provide him with opinions on possible negative effects or infringements on the sovereignty of the country. Pacheco said he wanted persons who were not in politics, were not in business or were not members of unions. Pacheco said there were a lot of lies and misinformation about the treaty, which is between five Central American states and the United States. The Pacheco administration fielded a negotiating team that studied and dickered with U.S. negotiations for nearly a year. His administration signed it Jan. 25, 2004, although Pacheco has not personally done so.
Gran Hotel will get patrimonial plaque The management of the Gran Hotel Costa Rica will get a plaque this Friday designating it as historical and architectural heritage site. The Centro de Investigación Conservación del Patrimonio Cultural announced the presentation Friday. The hotel is across a small plaza from the Teatro Nacional in the Center of San José. The hotel was built in 1930 after the Asamblea Legislativa passed a law providing financial benefits to the contractor, said the center, which is part of the Ministerio de Cultural, Juventud y Deportes. At the time, San José did not have a first-class hotel. In addition to certain financial benefits, the hotel was asked to construct two luxury apartments suitable for diplomats. Among those who have stayed there are John F. Kennedy and Jimmy Carter, both U.S. presidents. The hotel was designated an official heritage site Jan. 24.
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The president has been reluctant to send the measure to the Asamblea Legislative where lawmakers must either approve it or reject it. There is no set time limit for that to happen. Pacheco has claimed he did not want to send the measure to the legislature until a proposed new fiscal and tax plan was approved.
Inflation rate higher this year over last Inflation is rolling along at a pace better than 1 percent per month, according to an official accounting. The nation may see an annual inflation rate of 14 percent or more at the end of the year. The word from the Instituto Nacional de Estadística y Censos Tuesday was that the inflation in the first four months of the year was 4.93 percent. That number is nearly two percentage points higher than the same period a year ago. The inflation is not reflected in the devaluation of the colon against the U.S. dollar. That is just 2.85 percent for the four months, reflecting the programmed devaluation against the dollar itself. The inflationary bump in the economy is encouraged by the increase in the world price of petroleum fuel. Costa Rica imports all its fuel. The institute said that inflation from April 2004 to the beginning of May this year was 13.66.
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Letters to the Editor Any donations of CD’s or DVD’s would be appreciated. We are working on a project to provide them to hospitals for patients use. Please contact me at 283-7383 Carolyn Reilly What a wonderful idea! If you need, for convenience sake, please feel free to drop them at ARCR and we will pass them on to Carolyn. We look forward to receiving this magazine. It is rare if we do not read it in it entirety. Among the favorites are the language page, and the articles about the native animals and now looking forward to more articles by Carol Marujo. Keep up the good work! Bessie & David
Just received my copy of El Residente. I read it from cover to cover. I don’t know if poems are welcomed for the magazine or not, but I thought with all the difficulties going on, they might like to see my poem about the cross atop the mountain here, it is so inspiring, especially at night. Jeri Thank you Jeri, and it would be my pleasure.
We have enjoyed articles in the ARCR magazine from Ana Hernandez and Carol Marujo. We hope they keep them coming. Lorea
Mountain Cross
Thank you both for writing in, and I too hope that we will see more articles of these kinds, if not from these two writers, perhaps from others out there reading this or other issues. We are always looking for contributions and ideas.
Beautiful Cross, High atop your mountain, Bespeaking God’s wondrous love Flowing out like a sparkling fountain, swift, like the beating wings of a white dove. You speak to me.
Hi Bob, I just got a hold of your magazine, you guys are doing a great job over there! Anyway as I was reading your Presidents report in the Jan/Feb issue I noticed that you mentioned, “May you live in exciting times” was a wise saying from the sages. Actually its a Chinese curse, meaning that if you live in exciting times you will be lost outside yourself, to all the happenings of the world, and will never get down to the real work of uncovering your natural wisdom. Just a tidbit, keep up the good work! Kimberly
May-June, 2005
Beautiful Cross, Spilling out your golden light, Into the deep purple of the night, A symbol for all to see, You speak to me. Beautiful Cross, Shining bright, I look up, see you, And bid my Saviour goodnight. Jeri Duffield
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Insurance in Costa Rica
6. DRINKING. If you think the other driver has been drinking, ask the cop to give him a breathalyser test - “alcolemia”. Also point the other driver’s condition out to the INS inspector.
David Garrett IF YOU HAVE A COLLISION... FIRST OF ALL, FIND OUT WHERE YOU ARE “TICO STYLE”. 1. DON’T MOVE YOUR CAR! Later in the process, the cop will tell you when you can move the car.
7. TOW TRUCK. When the cop tells you to move your car, if you need a tow truck, ask the INS man or the cop to help you by calling one by radio. Bargain with the tow trucker, and make sure you get a receipt for the towing fee. (Note: if you have Collision insurance and your car is less than 15 years old, you can get free towing by calling 800 800 8001 – which is INS’s Roadside Assistance tollfree number.) 8. DO NOT ASSUME ANY OBLIGATIONS OR RESPONSIBILITY or “make a deal” with other parties involved in the accident. 9. SUMMONS. The cop at the scene of the accident will give each driver an illegible green ticket, which is a summons to appear at the Traffic Court or nearest “Alcaldía”. Ask the cop where and when to go. Do not fail to react to the summons lest you be found guilty by default.
2. SEVERE INJURIES. ambulance at 128 or 911.
Call
“Cruz
Roja”
3. CALL THE COPS. Call a traffic cop “un Tráfico” (tel 911) who will go to the scene of the accident. 4. CALL I.N.S. ASAP, phone 800 800 8000 (toll free) and ask them to send an inspector. Give your car’s tag number or policy number. The inspector will fill out an Accident Report and give you further instructions. If they tell you an inspector can’t go, ask for a claim number to prove you called, and ask for further instructions. 5. TAKE NAMES ADDRESSES, phones and particulars of witnesses, and of the other car and driver.
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Exchange rate of the Costa Rican ¢ to the US Dollar 450.73 October 454.27 November 457.58 December 461.06 January 464.25 February 467.46 March Basic Interest Rate October 14.25% 14.25% November December 14.25% 14.50% January February 14.75 % 15.00 % March Exchange rate of other currencies to the US Dollar Japanese Yen 106.85 Swiss Franc 1.1930 Canadian $ 1.2129 Giro (DEG) 1.5087 £ Sterling 1.8866 Euro 1.2983 Mexican Peso 11.180 Korean Won 1,015.6 Danish Krone 5.7378 Norwegian Krone 6.3225 Argentine Peso 2.9222 Colombian Peso 2,361.6 Brasilian Real 2.6628 Libor Rate 1 month 2.8700 % 3 month 3.1200 % 6 month 3.4000 % 12 month 3.8450 % Prime Rate
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5.75 %
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Holidays Of Costa Rica May 26th ‘Corpus Cristi’ June 29th ‘St Peter & St Paul’ July 25th ‘Guanacaste Day’ ********************
A Touch of Wisdom “People learn more on their own rather than being force fed.” Socrates (469-399BC) “The road to a friend’s house is never long.” Danish proverb “There was never a good war or a bad peace.” Ben Franklin (1706-1790) ******************** Always be careful with what you say... When Kentucky Fried Chicken entered the Chinese market, to their horror they discovered that their slogan “finger lickin’ good” came out as “eat your fingers off” Chinese translation also proved difficult for Coke, which took two tries to get it right. They first tried Ke-kou-ke-la because when pronounced it sounded roughly like Coca-Cola. It wasn’t until after thousands of signs had been printed that they discovered that the phrase means “bite the wax tadpole” or “female horse stuffed with wax”, depending on the dialect. Second time around things worked out much better. After researching 40,000 Chinese characters, Coke came up with “ko-kou-ko-le” which translates roughly to the much more appropriate “happiness in the mouth”.
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