El Residente 2011-09

Editorial Note: Some useless trivia: One of September’s birth flowers is the morning glory, and Costa Rica definitely has some glorious mornings in September. It is usually the afternoon that leaves something to be desired.

However, some people do like the rain, and it often gives us a peaceful time to enjoy the indoors. Things like cooking (and eating) and herein are a few delicious recipes for you to try.

You can also work on your Spanish. Chris Howard’s page can give you some more help dealing with the CCSS, though we hope you won’t need it anytime soon!

And of course, one can take more time to enjoy reading; so we hope you find this edition filled with articles to help keep you entertained, and educated.

- Ryan Piercy

Take note that the old ¢1000 and ¢2000 bills are no longer valid at commercial locations. They can still be exchanged at the bank until the end of October.

This magazine has been published every two months for fifteen years as the official communications media of the ARCR. Our organization provides service to thousands of foreigners who have chosen Costa Rica to reside for short periods or for permanent residence.

Since 1984 the ARCR 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 financial 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 office. Goods & services offered are paid advertisments.

Neither ARCR Administracion nor El Residente research the companies and take no responsibility for the quality of such goods and services.

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to two other organizations. I am now receiving “junk” mail from both of them – and Aerocasillas is charging me to bring it from Miami. I have tried contacting the offending companies to have my name removed from their mailing lists, but to no avail. There is, however, a way to avoid paying for mail you didn’t request and don’t want; simply tell Eduardo in the mail room that you refuse to accept mail of this type and you won’t have to pay the

Presidents Re epo ort

by The Board A Note on Scams and Other Advice First, I urge all members to be careful when using their computers and to be especially suspicious of unusual emails. I recently learned of a physician who had discovered his email account had been hacked and someone was using his address list to send out bogus messages. The emails stated that he, the doctor, was in London, had been robbed of everything, and asked the recipient to send him $1,500 so he could return to Costa Rica. Unfortunately, at least one of his patients sent the money by Western Union.

He was immediately asked for more.

forwarding costs.

I wanted to open an account at a bank closer to my home and was told that I needed a private accountant to verify my pensions. The bank officer said it should cost about 10,000 Colones. I called an accountant and provided him with the papers. A few days later I was surprised to find out that the accountant wanted USD $150.00 for the work! I refused to pay and he has yet to return the documents. It was my This is an “old” scam, but people still fall for it, particularly fault because we never discussed the price ahead of time. if the plea seems to have come from a reputable friend. It Advice to members: Always determine the charges before always pays to be careful and check out anything that seems committing to having any work done. even a little suspicious – especially if it includes any kind of solicitation for money – no matter who it appears to have Some members aren’t aware that they can receive a come from. discount at many stores, if they ask for it. Check with the Along the same lines, I know of at least five friends who had their computer invaded after answering an ad in a Costa Rican newspaper offering something “unusual” for free. Remembering that there is no such thing as “Free” – everything eventually has a cost – might have saved them a lot of future grief.

ARCR office to see which businesses provide them.

I have three wheelchairs which are available for loan shortterm (weeks to months) to ARCR members when they need them. Just call me at 8870-6756 to arrange pick-up or delivery.

Mel Goldberg

---------------------------------------Using foreign bank credit cards can have some hidden pitfalls too. Recently I noticed my Capital One account statement showed some charges that didn’t seem right, because they don’t charge fees for foreign purchases. I called the company and learned that the venders from which I had made the purchases had entered them as cash advances. I was obliged to pay the $5.00 fee, plus interest, for each one. Watch your credit card statements.

Association of Residents of Costa Rica FIRST FRIDAY LUNCH The first Friday of each month finds a group of ARCR members and staff sharing lunch and good conversation at Mananitas Restaurant in Sabana East. Beginning around 12:00 PM members gather in the restaurant. You will find it about three blocks North of the ARCR office. All are welcome! Please order seperately as you arrive.

By-the-way, if you pay the exit tax at the airport by credit MONTHLY NEWCOMERS SEMINAR card, you should be aware that it is also classified as a cash advance. From now on I will pay my exit tax at my bank, well Join us on the LAST THURSDAY / FRIDAY of ANY MONTH (except December) to find out more about what it is like to live in Costa Rica, in advance. and how to go about getting things done here. We invite professionals from each field to share their knowledge and expertise with I use the Aerocasillas mail forwarding service, provided by you. Hear what they have to say and ask them the questions you ARCR at a discount, for a few minor things. One of the have not found the answer to. Email seminar@casacanada.org accounts for which I use that address sold my information for more details.

Cover Shot Carambola, or what we call starfruit, is very decorative, especially when cut crosswise to create the star shapes from where its name is derived. It is a versatile fruit that can be eaten whole, or made into many healthy drinks and snacks.

Most importantly of all, it is simply rico!

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consumption and use by individuals. Seventy percent of the water in the world is used in agriculture, such as irrigation and watering animals; twenty percent in industry including hydroelectric power generation and production of products we use; and ten percent for human consumption.

Water is also important to aquatic plants and animals and by the Women’s Club of CR for recreational purposes. Some examples of the amount of water used in the production (virtual water) of products Would You Like a Glass of Water? include: 15,497 liters to produce 1 kg of meat, 11,000 liters to produce a pair of jeans, 2,400 liters for one hamburger, 75 “You know your water is bad, don’t you?” That was the liters for a bottle of beer and 140 liters to produce one cup riveting opening of the presentation by our speaker at the of coffee. I will think twice before I buy a pair of washed out last General Meeting of the WCCR July 13 at the Aurora blue jeans!

Holiday Inn. The speaker, a teacher and researcher from the University of Costa Rica (UCR), wanted to know a little bit In Costa Rica we utilize 300 liters of water a day per person about her audience before she began the talk, and it seems while millions of inhabitants in the world survive on nineteen that we both live in the same small town in Heredia. She was liters a day per person. Forty-six percent of the people right. I did know that my water is always visibly sucio during worldwide do not have tap water in their homes, and women the rainy season when it comes pouring down the rivers in in some developing countries walk an average of six km per the nearby mountains. What I did not know were the different day to get water for their families. sources of water in Costa Rica and the different types of pollution, along with lots of information on water usage.

According to La Nacion 30% of users in rural Costa Rica have contaminated water while 70% have good water.

Ingrid Vargas Azofeifa has been working at UCR since 2005. There are several types of contamination including inorganic She first studied geology at UCR, then received her Master’s microbiologic contamination with various ions as well as Degree in hydrogeology from the University of Waterloo in metals and radionuclide. Organic contamination includes Ontario, Canada, a school that is known for special studies gasoline, diesel, chlorinated solvents, paints and pesticides in her area of expertise. as well as bacteria and viruses mainly from untreated sewage. Only 3% of waste water in Costa Rica is treated.

Ingrid reviewed some statistics about sources of the water we use. Globally, 96.5% of all water is ocean and 1% from Protection against contamination starts with planned land other saline sources. Of the 2.5% of non-saline fresh water, use to define and set aside the space necessary to protect 30.1% is ground water; the remainder consists of glaciers well heads and springs. Enforcement of protected areas and ice-caps as well as surface water such as ice, snow, must then be maintained. We ourselves can help to maintain lakes and rivers. Both surface water sources such as lakes an adequate and safe water supply by reducing the amount and rivers and ground water are used in Costa Rica. Ground of water we use, recycling water to multiple uses, planting water, the most prevalent water supply in Costa Rica, is the trees and supporting and participating in local organizations water available below the water table in the saturated soil and educational programs. and rocks. We obtain this water through springs and wells For more information about the Women’s Club of Costa Rica, and it is replaced by rainfall. please refer to the Club Corner page of El Residente magazine As she explained, water has many uses in addition to human or go to the WCCR website at www.wccr.org.

Connection

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September- October 2011

5

Costa Rica Liv vin ng

by Ana Hernandez

A Childhood Tale I grew up a chunky girl, I suspect because of the things we ate when I was little. We grew up poor and there was never a lot of variety of foods at our table. Our diet consisted of rice and beans and guineas—small green plantains, boiled and served plain. Once in a while we had meat or eggs, but not very often.

around, we were allowed to have two of them, and it really made our day to have two portions instead of just one.

My favorite marmalade is made of the guava fruit with its luscious red color and thick texture, and luckily, there was always guava marmalade in my house to spread on bread.

Adults were usually the first to get up in the mornings, even before sunrise, and the first thing they prepared was the coffee. There was a large stash of coffee beans waiting somewhere in the cupboard that had to be ground in an oldfashioned metal grinder. This contraption had a metal wheel on the side, and a long handle that was turned several times in order to get enough coffee grounds for the brewing.

It was either rice and beans or beans and rice. If we were lucky, my mom added tortillas to our diet. My mother made the best tortillas, thick and freshly cooked on a black castiron skillet -- with a bit of lard spread thinly on its surface -just before the tortillas reached the skillet. My mom, just like the other women of her times, cooked over a firewood stove made with a few superimposed bricks and logs, placed over a big wooden table lined with a piece of metal.

Dried cod fish, prepared in soups, and a chicken stew served with the feet, the heart, the liver, and all of the edible organs, was added to our diet when the family budget allowed for it.

In the afternoons, at coffee time, a freshly brewed pitcher of coffee never failed to fill the house with its aromatic smells.

With the mid-afternoon coffee we ate a slice or two of bread, with a healthy coating of butter, sour cream or home-made marmalade.

Rarely did we buy coffee at our house. We children accompanied the adults to the coffee fields and picked the beans that had fallen to the ground after the coffee picking season was over. We brought our stash home and let it dry completely, then roasted it on a fire and ground it. Not only did we save money this way, but most of the time we also had If we couldn’t buy the bread from the store, my mom made enough coffee to sell to neighbors for extra cash. “arepas” to accompany our coffee. Arepas, are very thick pancakes made with flour, sugar and eggs, served dried, In the majority of Tico households children grew up drinking without any syrup. We loved them because they were sweet coffee. This tradition of allowing children to drink coffee was and filled our tummies nicely. When there was plenty to go not frowned upon by the adults in our society. It is part of our culture and it is not seen as something bad. Strangely enough, not all adults who drank coffee as children grew up addicted to coffee or are now coffee drinkers as adults.

Coffee in the old times was sweetened with molasses extracted by boiling chunks of sugarcane processed and molded into hard cakes. Sometimes when I was really hungry, I used to steal a chunk or two of the hardened sweet stuff and eat it like candy. The sugarcane cakes and a candylike byproduct of the sugarcane can be purchased at the mercado nowadays, but alas, I am no longer fond of them like I used to be when I was about seven years old.

I think I must have been around seven or eight years old when I learned to skin a chicken. My mom used to have Continued on page 7...

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several chickens and hens in the backyard, which was mostly dirt with a few lumps of grass and not very large.

There was also a lone rooster who claimed the yard and the hens as his property.

Ana Hernandez has worked with multi-cultural and intercultural communication issues in Costa Rica and the United States for over twenty years. She and her sister Maria run a study abroad organization and are directors of the Center for Cultural Interaction in Costa Rica, an educational Once in a while my mom brought in from the yard one of the agency dedicated to furthering cultural understanding among grown chickens that had been chosen for our supper and people from different countries. directed me to pluck all the feathers from the creature. She first twisted the chicken’s neck, so my job had been made more bearable – to an extent. The feathers used to come out easily, so the plucking wasn’t very hard. The hardest part was to cut open the animal and get rid of the gizzards. It is amazing at how good one gets at being able to recognize the inside parts of a chicken, not bought at the store and still warm from roaming freely.

Things have changed dramatically nowadays, thank goodness. In modern language, they call the chickens laid by a hen that had been fertilized by the rooster, “free range� poultry; or if the meat comes from other creatures such as deer, or wild boar, “free range� game, to differentiate the organic variety of meats versus the non-organic ones.

I am really happy to report that my diet as an adult is mostly vegetarian, and that aside from my childhood experience on skinning a chicken, my experience at skinning deer or wild boar is non-existent and I am grateful for this.

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EL RESIDENTE 2011

September- October 2011

7

ARCR Update

by Ryan Piercy

Out with the Old...

By now most everyone will have seen the new bills in circulation. What some may not have realized yet is that the old bills will slowly disappear as well. In fact, if you are still holding on to any old ¢1000 or ¢2000 bills, then you had best break them out of your piggy bank, and run them into the local bank, if you hope to spend them.

$300 per Corporation Many people here use corporations for everything: one S.A. to own the car, one for the house, another to do business. It has long been the practice of most attorneys to recommend this for asset protection issues. Now those same people may find this to be an expensive practice.

A bill in the legislature has proposed to levy an annual tax of $300 on each corporation that is registered here, and those that don’t pay will find themselves unable to carry on any activity requiring a personeria, or many other needs. Nonpayment may even lead to dissolution of the company, and forfeiture of registered assets. While previously unknown in Costa Rica, this sort of annual tax is common in the majority of jurisdictions.

As of August 31st, commercial locations no longer take the old bills (and shouldn’t give them either!). From this point the The Tax Department estimates the expected revenue to be only place where you can still exchange them is at your bank, near 37 billion colones, which would account for about half of the currently registered corporations here, numbering nearly and this only up until October 31st of this year.

500,000. Most are S.A.s (Sociedad Anonima), but also included would be the few foreign registered companies, and From November 1st, only the Central Bank will receive the sole proprietorships. bills for an as yet undetermined amount of time. So best to dig them out now, and run them into your local bank to avoid The funds collected are intended for a good cause, to combat future hassles. crime and improve public safety. At least we can all agree that this is a worthwhile area, as long as the money actually In all, the new bills we can expect to see in circulation include gets there. During President Chinchilla’s campaign, one the new ¢1000, ¢2000, ¢20000, soon to be followed by of the critical issues promised to be dealt with was public new ¢5000, ¢10000, and ¢50000 bills. The new bills have safety. better security measures, and are fabricated by Oberthur While this bill has not yet become law, it has obtained great Technologies in Rennes, France. support in the legislature, and seems likely to pass in one form or another. It is intended to be effective as of January 1st 2012, and every corporation will have thirty days to make payment. A further hitch for the government however, is that opponents have managed to send the bill for review at the Sala IV (Constitutional Court), so anything could still happen.

It should also be noted that the $300 rate would be for active corporations, while the charge may be only $150 for any corporations that are inactive in front of the tax department (such as holding companies).

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The Cuchara Ricca

by Celina Carazo Garnier

In The Fruit Bowl: Carambola The origin of carambola tree (Averrhoa carambola) has not yet been clearly determined; it seems to originally be from Tropical Asia (Malaysia, Indonesia). Carambola plantations have been described to exist in the north of South America, Guyana and neighboring areas for over 150 to 200 years in an almost wild state. The carambola tree is generally about three to five meters high, but it may even reach eight or nine meters.

More recently it has been found in other tropical regions, since its growth requires warm weather with an average annual temperature of 25° C and abundant rain. The plant prefers soil of deep, slightly wavy, well-drained sands or clay. In Costa Rica the biggest plantations are in the Atlantic region and also around San Carlos and Parrita.

1/3 cup of butter 1 cup of sugar 2 eggs ½ Tsp. of lemon rind 1 1/3 cup of flour 1 ½ Tsp of baking powder ¼ Tsp of salt ¾ cup of milk Place the three tablespoons of butter in a round baking mold (9½ inches); warm it up to get the butter melted. Cover the butter with the brown sugar, then place the star shaped carambola slices and the cherries. Crème the butter with sugar and lemon rind. Add (one by one) the eggs and continue beating for another four minutes. Mix the flour, salt and baking powder. Add the dry ingredients to the mixture, alternating with milk. Pour the mixture in the mold with the fruit. Bake at 350 Celsius for fifty to fifty five minutes. When it comes out, turn the mold upside-down on a platter. Wait three minutes before removing the mold.

The fruit has the shape of an oval with five prominences that go from side to side lengthwise. It has a fine and edible peel. Its greenish yellow color changes to golden yellow as it becomes ripe. It contains some small seeds; it has a sweet and sour taste and has a very juicy translucent pulp.

The nutritional importance of the carambola is unquestionable.

Water is its main component (about 90%). It also contains simple sugars, such as glucose and fructose (about 10%), and minimal amounts of protein. Its energy value is as low as 35 calories per 100 g (3 ounces). It is rich in vitamins A and Escabeche (pickled vegetables) (6 to 8 servings) 2 carambolas C, important for the health of different tissues of our bodies.

1 red pepper (chile dulce) Additionally, it contains potassium and calcium.

2 carrots (2 cups approximately) 1 onion Its fiber content stimulates bowel movements (large intestine) 1 cup of broccoli favoring the elimination of digestive waste. ½ cup of green beans ½ cup of sugar Besides eating it raw with peel and all, the carambola fruit ½ cup of vinegar may be used in the preparation of refreshments, juices, Soy sauce (to taste) marmalades, and salads, sweet and sour sauces, desserts 1 laurel leaf and pastries. Additionally, when it is transversally cut, the 5 cloves resulting star shape is commonly used in the decoration of cocktails and other dishes. Carambola is sold by weight; its approximate cost is 400 colones ($0.80) per kilogram. Next Cut the vegetables in to medium size pieces. Boil the vinegar, sugar, laurel leaf and cloves. Add the vegetables, lower heat. we offer you two recipes to enjoy!

Cook for about eight minutes more. Add soy sauce to taste.

We thank SUNI (Unified Institutional Information System) of If you want the sauce to be thicker, just add 1 tablespoon of the Agriculture and Stockbreeding Ministry (MAG), for the cornstarch (Maicena) diluted in ¼ cup of water.

--------------support they have provided.

Carambola Upside Down Cake (18 slices) 3 Tbsp of butter ¼ cup of brown sugar 2 sliced carambolas (star shape) 12 cherries

September- October 2011

Celina Carazo Garnier is a Dietitian, graduated in Argentina, and with 30 years experience in the field. She worked in the Clinica Biblica, the University of Costa Rica, and was head of the Department of Nutrition for the Ministry of Health in Costa Rica.

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Legal Update

so. This happened to a company in San Jose where the Manager gave warning letters for months to a person who arrived late every day. For the Labor Court “the negligence in not firing him before” gave the right to the employee to arrive late.

by Allan Garro N. If you like to bring gifts to your employees from your country of origin or buy them gifts here be careful, because Labor In Costa Rica: Being Good Can Be Courts could consider it salario en especie or payment in kind in which case it is considered that their salaries are a Bad Thing actually 50% higher in order to calculate compensation. The Many foreigners decide to come to Costa Rica as tourists, same happens when a small house is provided to employees investors or to become permanent residents. For those so they can live alone or with their families. In this case it is staying here one important goal to achieve is establishing better to charge at least a small amount of rent. a good relationship with neighbors, employees, friends and everyone in general. However, many have found that the Renting properties. Those who rent houses, apartments, worst thing they could have done was being too good to other condos or commercial properties and try to be kind to their people. This might sound strange, especially for those who tenants can complicate things for themselves. In regard to live their lives under philosophical parameters claiming all the payment date, article 58 of the Rental Law states that positive energy sent to the Universe comes back with bigger “….Tenants shall have the right to pay within 7 days from benefits, but in the following cases you will find examples of the agreed payment day…”. To give an example, if the rental exactly what we mean. contract states rent payment is due on the 1st day of each month the tenant can validly pay on the 8th. However, it often Employment relationships. Labor courts have established happens that the tenant needs more time to pay the rental in a ruling stating that if employers do not correct improper full. Many landlords try to be “good” by accepting payments actions committed by their employees immediately, then later to help out. Well, you had better read article 62 of the such actions become permissible. This is partially based on Rental Law that states: “If the landlord accepts payment on article 603 of the Labor Code that says, “All rights and actions a later date…the landlord is required to state in writing such granted to employers in order to punish or fire workers will tolerance will not be granted anymore. This is an essential lapse within a month from the moment an employee commits requirement if any further judicial claims are to be filed…” a fault”. This means if you have an employee who starts Basically the law orders that if the tenant pays after the 7 arriving late for work, or does not properly perform his duties, extra days given by law, the landlord has to provide a letter and you don’t immediately apply the appropriate disciplinary with a copy of the receipt to the tenant stating that further late action (which might include firing the person) it is the same payments won’t be accepted and in such case an eviction as granting the employee the legal right to keep arriving late process will be started. If the landlord ignores this obligation or to not perform duties properly. Many employers like to give and the tenant simply stops paying, the judicial process of people the chance to improve, or to change their attitude. To eviction should not be started unless proof of delivery of this do so, however, sets the employer up for an awful surprise letter is presented to the judge presiding over the case or it when the employee doesn’t change, is finally fired, and the might be dismissed later. A number of Lessors have ended Labor Courts grant a huge compensation payment to them. up paying judicial costs to tenants who are in default because In the event a transgression is detected, a warning letter they accepted their late payments once or many times. should be written and given to the employee. When three letters have been issued firing is the only option unless the Creating public roads instantaneously. Some land owners employer wants to assume the consequences of not doing have heard or think if they give people the right to go across their properties for more than ten years it actually creates a right for them to keep doing so because walkers acquire something like an easement for the right of way. This is not true. According to the Civil Code an Easement is a right where the owner of a piece of land (called the dominant state) has the right to use in some specific way a portion of the adjoining property (called the servant state). More specifically, article 395 of the code establishes that the owner of a property without access has the right to acquire an easement for the right of way from an adjoining property by paying to its owner a compensation for the value of the land taken and any other damages caused, making some easements very expensive in places where land costs are high. Does this Continued on page 11...

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cost of time and money.

mean landowners can allow neighbors to walk through their properties and sleep well? NOT AT ALL. The problem is the Public Road Law, in effect since 1972, which states in articles 32 and 33 that any access being used by the public for more than one year must remain open until the property owner can get a judicial decree stating otherwise– on a process that could take years. What is necessary to demonstrate that the mentioned road has been used as public for more than a year? Simply starting a procedure in the local Municipality by offering three witnesses. The road owner will be virtually defenseless. Some property owners who wanted to be good neighbors but one day decided to stop allowing people through their properties have seen bull dozers appear to tear down everything at their entrances and then divide their property and lower its value in a matter of days, armed with an order to keep things that way until a decree stating otherwise is obtained by the property owner at a tremendous

September- October 2011

Collect your money soon. Some people sell products or lend money to others who are supposed to pay within a specific period of time, including the obligation to pay interest on the debt. Frequently credit documents are signed as a guaranty for commercial invoices, letters of exchange, promissory notes, mortgages and others. When a debtor is in default it is better not to wait a long time before starting a legal collection action to recover the owed money and interest. According to article 984 of the Code of Commerce, the right to collect interest lapses within a year; which means if a debtor is in default and the creditor waits two to three years to start a collection action they may receive only one year of the interest due. Most commercial credit documents lapse within four years after the money is due (a commercial invoice lapses in only one year); so should the creditor take no action against a debtor who is reluctant to pay, the creditor could lose the right to collect even one penny.

Even though being good to a fellow man is an essential part of human nature and makes one feel better in the soul, some rules in the legal system ensure that the Good Samaritan may well be punished. It is sometimes better to think carefully about whether or not being nice is the way to go, because being nice can have serious consequences affecting assets accumulated during a lifetime of hard work.

Allan Garro N., Attorney at Law law@licgarro.com

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Letters to the e Editor In Reply To...

The mountains covered with jungle almost reach the unspoilt beaches. There are beautiful waterfalls, Indian villages and the largest mangrove area of Central America in the wetlands of the Sierpe and Térraba rivers.

So I invite everybody to come and discover this beautiful part of Costa Rica.

Dear Mr. Piercy, Subj: Response to Mr. Ogilvie

With kind regards, Anja Geesink-Kuipers In response to Mr. Ogilvie’s letter regarding Mel Goldberg’s glorification of military persons, I would just like to say that Ojochal de Osa Mel has every right to say as he wishes concerning anything Thanks to both of you for your letters. I would like to add connected with the military. that we recently had the opportunity to visit this southern Mel has donated countless hours to the American Legion region, and agree wholeheartedly with Anja. The area is and continues to be concerned and extremely helpful to all enchanting, with lush tropical forests, beautiful beaches, and the restaurants we tried, and hotels we stayed at, were very veterans in Costa Rica. I am sure that a lot of the veterans far from primitive. In fact we enjoyed the same luxuries you are members of A.R.C.R. and deserve the recognition that would expect in San Jose, and the hospitality of the people they get. we met was wonderful. I also highly recommend a visit to the area.

It is certainly commendable that Costa Rica has no military and is a nation of peace and would be even more Ryan Piercy commendable if all nations would follow suit. But, be that as For submissions, please email me at rpiercy@arcr.net it may, let’s give credit where credit is due. I am sure that Mr. Oglivie will have his chance to be President someday.

Lee Harris San Francisco de Heredia Member ARCR Dear Ryan, I have a small comment on the article in El Rentista of July/ August 2011, The Travel Journal on Costa Rica’s Enchanting Regions.

About the zona sur is said: “The Southern region is the most primitive and least developed area of Costa Rica .... travel there is only for the most avid and hardy adventurers.”

That maybe true if you do a hike in Corcovado with your backpack, but the Southern region is so much more than that.

How about Costa Ballena, the region between Dominical and Ojochal! From Manuel Antonio you can reach Dominical in just over half an hour, on the new Costanera highway.

Costa Ballena is a quiet region, where you will find small scale, environmental friendly hotels. Here you can see the whales in 2 periods each year: July - October and December - April. During the second and third weekend of September there is the Festival de Ballenas, with attractive discounts on the whale tours.

September- October 2011

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A Day In The Life e

due to its shape and the rough green skin of some varieties.

There are dozens of cultivars; the Haas being the most common. The tree produces fruit year-round and the Haas variety accounts for 80 percent of cultivated avocados in the world.

by Allen Dickinson

Mmmm, Avocados!

The 2011 theme for El Residente is cover pictures and recipes for fruits and vegetables native and/or unique to Costa Rica.

Although avocados aren’t truly Costa Rican, they are popular with Ticos and are readily available here. So, even if they don’t meet the theme, based on their popularity, I’m going to sneak in a story about them here.

“The oldest evidence of avocado use was found in a cave located in Coxcatlán, Puebla, Mexico, that dates to around 10,000 years BC. The avocado tree has a long history of cultivation in Central and South America; a water jar shaped like an avocado, dating to AD 900, was discovered in the preIncan city of Chan Chan. The earliest known written account of the avocado in Europe is that of Martin Fernández de Enciso (c. 1470c. 1528) in 1518 or 1519 in his book, Suma De Geographia Que Trata De Todas Las Partidas Y Provincias Del Mundo. The first written record in English of the use of the word avocado was by Hans Sloane in a 1696 index of Jamaican plants. The plant was introduced to Indonesia in 1750, Brazil in 1809, the Levant in 1908, and South Africa and Australia in the late 19th century.” (Thanks for that info goes to Wikipedia, http://en.wikipedia.org/wiki/Avocado.)

I grew up eating fruits and vegetables, many picked fresh from our own or neighbors’ trees and gardens. Because of that, I guess, I’m a “closet vegetarian” and love fresh vegetables. Especially avocados. I developed an instant passion for them from the first bite when I was five years old, sitting in my father’s lap, and have loved them ever since.

Meanwhile, back at the ranch: Avocados are expensive in the United States, and I never felt like I could afford to Additionally, my youth was spent in the Pacific Northwest buy them as often as I desired. So I dreamed of having my where I was surrounded by trees and greenery; and to this own avocado tree. Since early childhood, when my mother day I find being surrounded by green plants is soothing to my showed me how, I have tried to grow one. If you don’t know soul. So it was no surprise that when I got here and saw all how that’s done, it is simple: take an avocado pit and insert the greenery, I felt I was “home.” And when I learned about three or four toothpicks horizontally around its circumference the cheap and abundant fruits and vegetables, a strong about midway down the seed. Then suspend the pit over a secondary motivation for moving here was born. Then, when glass of water by the toothpicks so that the fat end is down I learned that every fruit stand, every feria, every vegetable and submerged slightly in the water. If you are lucky, in a shop and pulperia sells avocados, I was completely hooked. few days to weeks the seed will split and a green shoot will emerge. Give it a more few weeks to develop and, after the Costa Rica is a tropical country, so naturally things grow well plant is well established (the glass will be filled with roots) it here. Given the warm climate, mild temperatures, frequent can be transplanted into a growing medium like potting soil, rains, and ground that is rich with nutrients from decaying or even just plain dirt. plants and past volcanic actions, it’s not surprising green things flourish. But, much to my surprise, I discovered that I must have used that method to try to grow an avocado tree avocados are not grown commercially in Costa Rica. The at least fifty times over the years and the best I had ever avocados I was seeing (and buying) were imported! been able to accomplish was a skinny stalk about two feet A mini horticultural / historical / linguistic aside here: “Avocados originated in the state of Puebla, Mexico, where the native, undomesticated variety, known as crillo, is small with dark black skin. They are classified in the flowering plant family Lauraceae, along with cinnamon, camphor, and bay laurel.”

“The word avocado comes from the Nahuatl (Mexico) word ahuactl, meaning testicle, a reference to the shape of the fruit. They were known by the Aztecs as the fertility fruit. In some countries of South America, such as Argentina, Bolivia, Chile, Peru, and Uruguay, the avocado is known by its Quechua name, palta. In other Spanish-speaking countries, it is called aguacate, and in Portuguese it is abacate. The fruit is sometimes called an avocado pear or alligator pear

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high with some straggly leaves at the very top . . . which would then promptly die. Tender care, kind words, and an occasional shot of fertilizer made no difference; they all died.

It was always disappointing and a few years ago I finally gave up trying. Maybe my ex- was right when she said I had a black thumb.

But now, living in Costa Rica, I don’t have to try and grow my own avocados any more; imported or not, they are readily available here . . . and cheap! I like to eat them straight with a little salt and pepper or sliced as a topping on a sandwich.

My Tica wife likes to scoop out the contents and put it on some bread to have with her morning coffee. Either way, we go through at least five or six a week.

Continued on page 15...

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Imagine my excitement recently when I was looking off my second floor balcony and spotted what appeared to be an avocado plant growing in the rough next to the house. I called my wife’s attention to it and she assured me that, yes, it was an avocado. How, I asked, did it get there? She casually told me she had thrown a pit out there a while back.

It wasn’t deliberate, she hadn’t buried it or anything, and had no intention of growing anything, she was just disposing of the seed.

Allen Dickinson is a member of ARCR. After serving 23 years in the US Navy he settled in Pensacola, Florida, where he resided for 24 years. In 2006 he retired from operating his own licensed mortgage brokerage business and relocated to Costa Rica. He holds a Bachelor of Science degree from the University of the State of New York and a Master of Arts degree from the University of West Florida. He can be reached via email at: humphree@bellsouth.net

Ahh, it’s got to be that rich Costa Rican soil and warm climate because we now have a one meter high avocado plant growing and thriving next to the house. It has more leaves than any of the ones I had attempted to propagate back in the States . . . and looks healthier than any of those too.

By chance, moving to Costa Rica may have helped me fulfill the long held dream of having my own avocado tree. The only problem is that it takes four to six years for a plant to mature and bear fruit. But so what? I have waited fifty years already, so I guess I can wait a few more.

In the meantime, I can buy all the avocados I want, even if they mostly come from Mexico. In any case, I’ll leave the one growing next to the house on its own because it seems to be doing well – and me and my “black thumb” probably shouldn’t get too close.

September- October 2011

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Marine Corpss Le eague

by Karen Slack

Once A Marine, Always A Marine The Marine Corps has a saying “Once a Marine, Always a Marine”, which is why a few good men like Bill Enell, Bob Brice, Gene Beverlin, Mel Goldberg, Jerry Karl, Ira ‘Hoss’ Cartwright and Jamie Comacho founded the Marine Corps League, Ernest G. Familier Detachment of Costa Rica in April 2010. Their goal was simple, to offer an opportunity for fellowship and camaraderie to Marines and Naval FMF Corpsman living in Costa Rica, and to give back through service to our adopted country.

The Marine Corps League is not a new idea. The original Marine Corps League was founded in 1923 by the legendary Commandant Lieutenant General John A. Lejeune. Its mission is to preserve Marine Corps traditions, promote ideals of American freedom and democracy, aid and render assistance to Marines and former Marines, their widows and orphans, promote public service and observe anniversaries of historical occasions of particular interest to Marines. The Marine Corps League worldwide boasts 76,000 active and inactive Marines and FMF Corpsman.

4th of July picnic, and attending the annual Marine Corps Birthday Ball.

As humanitarians, the Marine Corps League Costa Rica is dedicated to providing community service as evidenced by their involvement in Children’s Day in Costa Rica and assisting the U.S. Embassy Marine Corps Security detachment with their “Toys for Tots” at Christmas time. The Although the Costa Rica detachment of the Marine Corps Marine Corps League provides needed items to the Infants League may be a new detachment, they are already very Home of Pavas with birthday gifts for the children and an active and, as of July 2011, have 42 active members with a annual Christmas party. goal of 70 members by the end of the year.

So, “Do You Know a Marine?” We at the Marine Corps The Marine Corps League provides a number of services, League Costa Rica Detachment are looking for a few good such as burial details for families of deceased veterans of all men and women Marines and Navy FMF Corpsman to enter branches, information on veterans’ benefits, and participates our ranks. Join us and be part of something great, “The Few, in community activities such as Veterans’ Day, the Atenas the Proud, the Marines.”

Chili Cook-off, Memorial Day Services, Independence Day

Our meetings are held at 11 A.M. on the second Saturday of each month.

Contact Commandant Bill Enell at mcleaguecr@yahoo.com for more information.

Visit our website: https://sites.google.com/ site/marinecorps leaguecostarica/ Semper Fidelis, Karen Slack, MSgt, USMC, Retired

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Learning The Language

by Christopher Howard

Medical Mix Because of the recent posts about using the caja I have included some terms that may assist non-Spanish speakers with Costa Rica’s medical maze. Last issue I published the first part of this article Abra la boca – Open your mouth Colesterol – cholesterol Cuanto antes – as soon as possible Curar una herida – to treat a wound Débil – weak Disentería – dysentery Embarazada – pregnant Epiléptico/a – epileptic Es urgente – It’s urgent Hinchazón – swelling Infección – infection Insolación – sunstroke Inconciente – unconscious Mamograma – mammogram Orinar – to urinate Papanicolao – pap smear La frotis vaginal – pap smear

Pediatra – pediatrician Picazón – itch Próstata – prostate Regla or período – a woman’s period Ronchas or sapullido – a rash Sangre – blood Tener sobrepeso – to be overweight No tener cura or incurable – incurable Quemadura – burn Respire profundo – Breathe deeply Sangrado – bleeding Suturas or puntos – stitches Tos – cough Triglicéridos – triglicerides Úlcera – ulcer Urólogo – urologist VIH – HIV

Antes o después de cada comida – before or after each meal (instructions used for taking medication) Antígeno Prostático Específico (APE) – a man’s PSA test Cada …horas – every…hours (instructions used for taking medicine) Carné – an identification or membership card that shows you belong to the Costa Rican public healthcare system El examen dio positivo/negativo – the test turned out positive/negative ¿Es alérgico/a a algo? Are you allergic to anything? ¿Está tomando alguna otra medicina? – Are you taking any other medication?

Estar intoxicado/a – You have food poisoning. This doesn’t mean you are drunk although it sounds like it. ¿Hay un doctor que hable inglés? – Is there an English speaking doctor?

Muestra de sangre/heces/orina – A sample of blood/stool/urine Orden patronal – a slip issued each month proving your caja membership is up to date. You will be asked for it when you seek medical services.

Tengo una cita – I have an appointment.

No tengo una cita – I don’t have an appointment.

Yo quisiera sacar una cita? – I’d like to make an appointment.

Yo quisiera ver a un especialista – I want to see a specialist.

Here is your Costa Rican expression (tiquismo) for this week: “De médico, poeta y loco, todos tenemos un poco.” – We all have a little bit of a doctor, a poet, and a crazy in us.

“Los errores de los médico se tapan con tierra” – Doctor’s errors get covered with dirt.

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Wild Side LXIII

by Ryan Piercy

Crabby Country Costa Rica is known internationally for its rich biodiversity.

Most of us are aware of this regarding birds and mammals, but many are not really familiar with other groups that live here, such as crustaceans. The scientific community recognizes this; for example it recognizes the seventeen species of freshwater crabs, in six genera, that are native to Costa Rica. Oh, make that eighteen!? That’s right!

Apparently a new freshwater crab species was uncovered here within the last year. But that’s not all! Another new crab species, an inhabitant of the Isla del Coco, was revealed just months ago.

undersides more yellow and turquoise. Males average about 2.8 cm in width, with the females only slightly smaller at 2.7 cm.

The crabs located seemed to prefer places under rocks, but also around leaves that were in various stages of decomposition.

Meanwhile, out in the Pacific Ocean on the lush Isla del Coco, a group of researchers have determined that a species of land crabs found there are, in fact, another endemic species for the country. Johngarthia cocoensis is a species of land crab that is notable for its large size; males can reach up to 40 cm across, with the females only slightly smaller. They are found along the coasts of the island, normally living in holes they have dug into the soil. They feed primarily on grass and seeds.

Researchers say that the crab is similar to species found on other islands of the western Pacific. Robert Perger of the University of Costa Rica stated “The similarity with other species in the western Pacific indicates that larvae (which develop in the sea) may have crossed to Cocos Island by sea currents,” and then adapted to the habitat to grow into a new species, he added. This is because while the crabs live on land, their larvae develop in the ocean.

Late last year Zootaxa published a paper on a new species of river crab, found in the southwestern part of the country.

And Allacanthos yawi wasn’t discovered near one of our lush tropical beaches, but in fact it lives at 1000 meters above sea level, near Buenas Aries in the Puntarenas province.

Luis Rólier Lara Hernández made the discovery in 2009 while performing technical studies in relation to the proposed The discovery of a new crab species for a country, let alone Diquis Dam project. It is believed the crab exists only in two species that are completely different, is not something Costa Rica’s Southern Zone. you are likely to see every day. Ingo Wehrtmann of the UCR has stated (in relation to Allacanthos yawi) “This discovery The crabs’ name is actually indigenous in origin, as yawi is the should motivate us to protect rivers, streams and habitats Cabecar word for river crab, or more specifically “river crab that shelter a large number of aquatic insect species, fish, that lives under rocks.” The specimens gathered were found and now crabs, which are only found in Costa Rica and are in Río Volcán and small tributaries of the river Cañas in water threatened by pollution.” less than three meters deep. They can be distinguished by the colors of greens and olives on their backs, with the Hopefully these discoveries will help to open people’s eyes towards more conservation efforts as these special discoveries happen less and less frequently as our ability to travel and research improves. It just goes to show that whether it is large crabs like cocoensis, or small ones like yawi, it is possible to make a very big difference in the way we think.

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four productions a year offering a choice of modern, classic, serious, and farcical plays. The group’s monthly social meetings are held in the theatre on the first Monday of the month from 7p.m. to 9 p.m. and everyone is welcome. Membership: Student C2,500, Adult: C5000, Family: C8000. Also, earn your Wings, become an LTG Angel. For more information Call the LTG Box Office 8858-1446 or www.littletheatregroup.org

Alcoholics Anonymous Groups meet daily throughout the country; times and places change frequently. Call for up-to-date information.

San José 2222-1880 (Anchor club, also serves Narcotics Anonymous) Av 6 Calle 1, 2nd floor Maryland Building.

Heredia (Laura) 2267-7466, Puerto Viejo Limon 2750-0080, Zancudo 2776-0012, Tamarindo 2653-0897, Flamingo (Don) 26544902, Manuel Antonio (Jennifer) 2777-1548, Jacó (Nancy) 2637-8824, Zoo Group Escazu 2293-4322.

Al-Anon Meetings Al-Anon Family Group is for all family and friends of Alcoholics. Meetings are at the International Baptist Church, 2nd floor, Saturday morning 10:30, located on the pista toward Santa Ana between the Multiplaza and Guachepelin exits. For information in English, please call Ken 2288-0317 and Rosemary 8993-1762; For Spanish please call Christine 8840-4658 American Legion Post 10- Escazu Post 10, The oldest and largest American Legion Post in Costa Rica, meets at 12 noon on the first Wednesday of each month at Club Cubano in Guachipelin. For information and map, please call Mel Goldberg at 2288-0454 or 8870-6756, or John Moran at 2232-1680.

American Legion Post 12- Golfito Meetings are held 4 pm 1st Tuesday every month at Banana Bay Marina. The Golfito GOVETS have been helping Southern Costa Rica for over 20 years. Contact Pat at walkergold@yahoo.com or 2775-2809.

American Legion Post 16- Goicochea Meetings are the second Wednesday of the month in the Hotel of the Hospital Clinica Catolica. Lunch at 11:30 and the meetings at 12:30 Contact Jim Young at 2524-1265 or Ken Johnson at 25911695.

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 2282-5365 or at costaricabirding@hotmail.com Canadian Club The Canadian Club of Costa Rica welcomes all to join us for our monthly luncheons, and at our special annual events, like our upcoming Canadian Thanksgiving in October. For information visit our website: www.canadianclubcr.com Democrats Abroad Democrats Abroad meets on the last Saturday of every month at the Aurola Holiday Inn, San Jose. Contact Nelleke Bruyn, 2279-3553, e-mail cr.democratsabroad@yahoo.com. Join Democrats Abroad at www.democratsabroad.org. Register to vote absentee at VoteFromAbroad.org!

Little Theatre Group LTG is the oldest continuously running English-language theatre in Central or South America. The group currently puts on a minimum of

September- October 2011

Marine Corps League Meets the 2nd Saturday of the month, Int’l Baptist Church, in Guachipelen. Call Bill Enell at 8812-0126.

Newcomer’s Club Newcomers Club of Costa Rica (for women) meets the first Tuesday of every month, September through May. September meeting will be an interest fair. Contact: 2416-1111 costaricaporo @yahoo.com or http://www.newcomersclubofcostarica.com PC Club of Costa Rica This computer Club meets on the third Saturday of each month at Pan American school, in Belen, 830 to 11:30 am 2 months Free Trial for newcomers. For information call Chuck Jennings.

Phone 2266-0123 www.pcclub.net Republican’s Abroad The Republicans Abroad of Costa Rica meets the second Tuesday of each month. Contact Francis 2203-6131, or fax 2282-2150.

Radio control Sailing Club Meets at Sabana Park Lake. For information contact Walter Bibb.

Wwbbsurf40@yahoo.com Wine Club of Costa Rica 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.

For more information on upcoming events please contact us Phone 2279-8927, 2257-2223 Women’s Club of Costa Rica In 2010 The Women’s Club celebrated 70 years of philanthropy in Costa Rica. Current programs focus on education, primarily through scholarships and development of school libraries for children. It is one of the oldest, continuously operating service organizations in Costa Rica. WCCR membership numbers 250 English-speaking women, representing 25 countries of the world, drawn together by the motto: Friendship through Service.

WCCR monthly meetings with guest speakers are held the second Wednesday of each month, as well as regular luncheons, teas, and many interest groups. Guests are welcome and further information can be found at www.wccr.org Women’s International League for Peace and Freedom (open to men too) Bilingual group meets in Heredia on the first Wednesday of the month at 10 a.m. in the clinic of Mireya Gonzalez. We work on peace and human rights issues. Call Mitzi 2433-7078 or write peacewomen@gmail.com Young Expats of Costa Rica Some Expatriates under the age of 40, and currently living in Costa Rica, have formed a new social club to be coordinated through their website This club will help younger expatriates living in, or moving to, Costa Rica meet other expats in their age group for; friendship, romance, travel and activity partners, and professional networking. www.YoungExpatsOfCostaRica.org Veterans of Foreign Wars: Post 11207 Meetings are held at 12 noon, the first Tuesday of every month, at Club Colonial Casino on the second floor. All members are welcome and veterans who served overseas may join. For info please email the post at vfw112072003@yahoo.com.

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levels seen before the credit crisis.”

Dollars & $en nse e

The “easy money” speculation also surged into Commodities as the equitization of commodities via ETF’s & ETC’s spread the contagion.

by Alan Weeks As Eric Parnell (2) put it: “Even though 2 ½ years have passed with the market rallying 105% from the March Hedging to Preserve Wealth 2009 low to its May 2011 peak, virtually nothing has By definition, a hedge is an investment position intended to changed.” offset potential losses that may be incurred by a companion These parallels should provide a strong warning to investment. investors. th Public futures markets were established in the 19 Century to allow transparent, standardized, and efficient hedging of HISTORY LESSONS agricultural commodity prices. Since then, the use of hedging In the broadest sense, the biblical story of Joseph advising has been expanded to hedge against significant losses in the the Pharaoh in ancient Egypt to store surplus grain during the values of many common items such as energy and fuels, years of abundance to be prepared for the inevitable periods of drought, also seems to be a form of hedging. And, in foreign currencies, and even change in interest rates. established societies throughout the ages since, the storing of surplus grain and water were wise practices that preserved LEVERAGE IS VERY RISKY With an understanding that the use of hedging is a means the well-being (and wealth) of colonies and empires. to preserve wealth, it should be very apparent that those who borrow large amounts of money to leverage their “bets” on any investment are taking on high risk to try to “get-richquick”. This is an Alternative Investment Strategy, not a hedging strategy.

The fact is that many of those “get-rich-quick” schemes have incurred huge losses when markets changed unexpectedly, as leverage accelerated the losses. Thus, investing in leveraged funds should be left to knowledgeable persons willing and able to gamble; and even then, it should be in limited amounts.

More leverage means more risk. It is Economics 101.

Margin debt, another form of leverage, is the amount that speculators borrow to buy stocks (or other assets). In fact, the measures of NYSE margin loans have almost perfectly tracked equity prices in recent years. In other words, the FED’s easy money has apparently been “ploughed” straight into speculation. In fact, after the stock market “bottomed” in March 2009, its valuation surged 105% to May this year.

In past articles, the FED’s easy money policies were called Bubblenomics. With this in mind, remember what happened to market values after past U.S. “bubbles” peaked in: (i) the Stock market after March 2000. (ii) the Housing market after early 2006, when Mortgage debt peaked. (iii) the Stock market after November 2007.

John Maynard Keynes prescribed somewhat similar basic advice. While many understand that Keynes favored government spending during a recession, he never intended it to create structural deficits. He was simply recommending that government should serve as a “shock absorber” for economic ups and downs.

Keynes prescribed surpluses in the best of times, with the accumulated savings serving to fund deficits in the bad times, supplemented by temporary borrowing, if necessary.

Keynes loathed inflation and currency debasement, which he correctly viewed as the scourge of the middle class.

As further evidence of the ties between escalating margin Keynes would “roll over in his grave” if he could see things debt and market surges, David Rosenberg (1) pointed out being done now in his name. Keynes was opposed to large that again this April “the [high] levels of margin debt were structural deficits. He believed they chilled rather than consistent with the NASDAQ bubble and just shy of the Continued on page 23...

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stimulated the economy.

his private U.S. Central Bank and the U.S. Treasury say is real money?

All of these points should have been included in any Economics 101 curriculum.

There is no magic to money. It works as a medium of exchange and a store of value when, and only when, its Keynes also understood what western government quantity is strictly limited. That’s what is nice about gold. representatives for decades have either ignored, whether Its quantity is controlled by nature itself. This is why you ‘blinded’ by hubris or for political expediency, or were can look back in history and find that gold was just about as otherwise clueless about: that any increase in debt must valuable a thousand years ago as it is now. be paid in the future. Mature adults know this and it does not take a genius IQ for professionals to figure it out. In It is also very interesting to realize that, while there was a fact, Keynes rightly thought the ordinary people (not credit- lot of media attention paid to the Western Central Banks’ addicted) are instinctively more reasonable economists than sales of gold in the past, only a small amount was actually economists and financiers. He also believed it was to them, sold. Recently central banks around the world have quietly the ordinary people, that government leaders were ultimately become buyers of gold and are adding it to their currency responsible. My, how far they have strayed! reserves.

It has also been contended that the U.S. Federal Reserve and successive U.S. governments, perhaps as unintended consequences of their actions, have been destroyers of the wealth of ordinary people for a very long time. And, leaders of other countries have done much the same.

The fact is that from the beginning of the 1800’s until the creation of the U.S. Federal Reserve (the FED) in 1913, except for a brief period during and after the Civil War, the U.S. dollar was stable and reliable. People trusted it because it was real money, backed by gold.

It should be obvious by now that it has never been a primary goal of the FED to preserve the “real” value of the U.S. dollar, as one would have expected, because it has lost 95% of its purchasing power since the FED was set up. The other major currencies have also declined in purchasing power for many decades, as inflation has eroded their “real” value.

Reports also show that since 2004, the gold holdings of the central banks of Russia, China, and India, have been increased significantly. You see! Central bankers understand gold is money.

In addition, the Indian and Chinese people have long been “lovers” of gold jewellery. Combined, these two countries now account for about 67% of the world’s jewellery demand.

And, that demand has been increasing at a substantial pace.

Furthermore, another recent surge in demand for gold has been driven by the significant increase in demand for it as an investment. Citizens in China and other emerging markets appear to be looking to protect their wealth from rising inflation. And, for the first time, demand for gold in China was so strong in 2010 that it outpaced the combined total of the developed West.

Central banks of both developed and developing nations That’s despite triple-digit increases in demand from France, have been aggressively increasing their money supply for Germany, and Switzerland. Meanwhile, in the U.S., the many years. factors of negative real interest rates, increased deficit spending, and much uncertainty, also appear to be driving In fact, China’s money supply has increased about 100% the demand for gold. over the last five years. And each year the supply has been at least twice the country’s economic growth. That is very A DIFFERENCE IN ATTITUDE TOWARD GOLD inflationary. I had previously described this as a race to Generally speaking, the investing public in the West sees debase one’s own currency. gold as a wealth-gaining asset to be traded like stocks and bonds. This is probably why so many Westerners are often Naturally, as more people around the world start losing fretting about the price of gold in currency terms. And, some confidence in their own, or in the U.S. “paper currency”, get ‘spooked” by headlines saying “Gold is in a bubble”. they look for a “safer haven” to preserve their wealth. Over Perhaps they should start to consider whether the value of the last decade, more Americans, Canadians, Europeans, gold is surging because of the surge in global demand; and/ Chinese, and others have been investing in gold at an or that the value of their own currency and “real” incomes accelerating rate, probably for that very reason. For others, are “sinking”. gold is a hedge against inflation.

Western governments, of course, probably fear rising gold FED Chairman, Bernanke, recently responded to a question prices because it restricts their ability to create more “paper about gold by saying he does not regard it as money. But, currencies” with minimum notice.

Continued on page 24... if gold isn’t real money, what is? Is it pieces of “paper” that

September- October 2011

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Meanwhile, the U.S. remains on a spending path of a size and intensity never before witnessed in human history.

And yet, we are having to endure the political “tango” in Washington with far too many still willing to “kick the debt can down the road” for their own short-term political ends rather than begin to undertake the huge challenges to do what is best for the long-term of the U.S. and the American people.

Hence, the debt, just like a rotten smell, remains!

It is expected that the “race to the bottom” among the currencies will continue as each sovereign state still seems to believe a weaker currency will boost exports and ultimately get them out of their own mess.

The Chinese government, on the other hand, respects gold.

This is evident by the laws passed to facilitate mining and private gold ownership.

Furthermore, the Chinese government has encouraged the public to put 5% of their savings into gold. This is so significant because the Chinese can save up to 40% of their annual salary. And, of even greater significance is that a huge number of Chinese people are becoming wealthier. In fact, at 157 million people, China is now second only to the U.S. in size of its middle class population.

It is no wonder then that, on a per capita basis, the acquisition of gold by the Chinese people, presumably seeking a “safe haven” from inflation, has more than doubled since 2005.

FUTURE OF PRECIOUS METALS As the “safe haven” demand for gold accelerates, there is bound to be a further transition from the $200 trillion financial asset markets to the $3 trillion above-ground gold bullion market. Furthermore, of this $3 trillion total, a good portion is owned by central banks and about half is privately held.

Moreover, the privately held bullion is largely owned by the world’s richest families and is not for sale at any price.

It is interesting to ponder how high the value of gold would be driven up if the managers of the world’s huge Pension, Endowment, and Managed Investment funds also decided to move only 5% of their assets into gold. In this regard, it was recently reported that an Endowment fund in Texas had done just that.

IN SUMMARY The debt problems in Europe are now weighing on value of the Euro with no recovery in sight for the PIIGS: Portugal, Ireland, Italy, Greece, and Spain. And, the harder EU leaders try to badger and cajole the PIIGS governments’ into accepting more serious doses of austerity, the more the people, who will have to carry this burden, are revolting and rioting. Moreover, the harder bond investors look, the less likely it appears even possible for a number of the “Club Med” countries to ever repay their accumulated debt.

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Furthermore, as if there were not enough huge problems facing the global economy, it has finally been admitted by the IEA that, for the first time in history, conventional, low cost, oil production will not fully satisfy demand. In addition, “hydrocarbon resources are becoming more difficult to access and challenging to produce, and costs of developing and delivering energy are escalating”. For this reason, I am expecting that, after a severe short-term correction, [for reasons recently suggested], the price of oil should again start to increase steadily.

Of course, increasing oil prices will create inflation, dampen economic growth even more, decrease tax revenue, and potentially encourage the search for other creative ways of further “debasing” the purchasing power of the U.S. dollar.

So what does this currency “race to debase” mean for gold?

It is expected that, sooner or later, the investment community will realize a “flight to safety” will be a flight from anything “paper” no matter whose portrait is printed on it.

Moreover, gold has historically gained purchasing power in periods of deflation. This makes gold bullion funds (not gold stocks, or “paper” ETF’s) an attractive investment for a portion of our portfolios.

Finally a note on hedge funds: Hedge funds are only available to qualified investors.

And, while there are thousands of hedge funds open for investment, only a very few of those managed to preserve capital throughout the period from late 2007, when stock and commodity market valuations plunged, and have continued to perform well. After further examination, only a limited number from among these few funds are being recommended.

Please note that the opinions expressed in this article are solely those of the writer For more information and reference details please contact Alan Weeks At (507) 6670-3944 or by E-mail: imccr2002@yahoo.com

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September- October 2011

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+! %" ,- ( &. ! *&., - 1!, 0$-# -#$,

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Holidays of Costa Rica September 15th (ARCR closed) Independence Day October 12th (ARCR closed) Day of the Cultures December 25th (ARCR closed) Christmas Day ******************** A Touch of Wisdom “Good memories are our second chance at happiness.”

Queen Elizabeth II “Honesty is the best policy.”

English proverb “Neither a borrower nor a lender be.”

William Shakespeare (1564-1616) ******************** A quick smile...

Aim for the stars. But first, aim for their bodyguards.

If you can’t find the positive side, buy a magnet!

The probability of someone watching you is proportional to the stupidity of your action.

Whits pink, wrinkled and hangs oot yer trousers??? Yer Gran!

What are 3 words you never wanna hear whilst making love? Honey, I’m home!

I can please only one person per day. Today is not your day.

Tomorrow isn’t looking good either.

It’s no accident that stressed spelled backwards is desserts.

September- October 2011

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