El Residente 2011-11

Editorial Note: The end of the year is almost upon us, and with it comes our final edition of El Residente for 2011.

Inside this issue you will find a number of articles relating to how the culture affects our life here, from the different things that are cooked or eaten, to similarities in superstition.

We all see these things from a different point of view, and we all adapt to them in our own way. Still, I think its a good thing to get someone else’s view once in a while to help us rethink our own lives.

So find yourself a comfortable place to sit, pour yourself a great big glass of guanabana juice, and enjoy this edition in the way that you are meant to live in Costa Rica... relaxed.

- Ryan Piercy

ARCR now offers an INS Medical Policy which is discounted by 10% over the regular rate. Contact the office for further details.

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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President’s Re epor rt

by The Board A Note on Scams and Other Advice Since this issue of El Residente will cover Christmas time, I thought it might be helpful to offer a Christmas shopping tip.

Costa Rica law allows each person to bring into the country a certain amount of goods without having to pay import duties (the amount was recently raised from $500 to $1,000 USD) every six-months. This exemption process works well and easily – if you fly in or come across the border physically.

However, it doesn’t work so well if you order something by mail – mail shipments are almost always, automatically assessed import duties. But there is a way you can get around that and get the exemption on items sent you by mail.

McEntee, head of the FBU locally, recently negotiated a contract with Hospital Clinica Biblica. Note that the DVA will not pay for an examination unless it is previously authorized. It is also very important that the veteran keep the appointment or notify the doctor in advance if they are not able to make it.

For any Freemasons out there, you may like to know that there is an English speaking lodge located here in San Jose.

If you are living in or visiting Costa Rica you are cordially invited to visit the lodge. The Grand Lodge of Costa Rica also offers seminars twice per year for those who would like to learn about Freemasonry. Please feel free to call me at 8870-6756 if you would like further information.

Once again you may be reading this after the fact, but the Commonwealth Remembrance Day / USA Veterans Day ceremony is scheduled for Sunday November 13th.

Hopefully I will be able to get word out about this earlier next year, or once again please call me for more information.

If you use Aerocasillas and have your purchases delivered In the USA, September 11th has been designated as a here to the ARCR office, all you need to do is tell Edwardo in National Day of Service and Remembrance. the mail room that you are expecting a package, IN ADVANCE. You will need the tracking number and value amount, and he Mel Goldberg will fill out the appropriate form and submit it to Aerocasillas for you.

---------------------------------------Be aware, however, each exemption is a one-time deal (it spans six-months) and any shipment claimed for exemption uses the total amount of the exemption for that period. That is, if you order, say, a $5.99 Lord of the Rings T-shirt, and it comes in a separate package, and you seek exemption for that package, the whole amount of your exemption is used for the next six-months.

So, if you plan on ordering most of your Christmas gifts from ebay, Walmart, Amazon, or wherever, and they are to be delivered to you by postal service, you can get them here under the exemption – IF everything is in the same package.

Therefore, it may be a good idea, if you have someone back home who can receive shipments, to have all your purchases sent to them so they can combine them all into one package to send you. That way, with a little planning, you can get much of your holiday shopping here without paying the import duties.

Association of Residents of Costa Rica FIRST FRIDAY LUNCH DECEMBER – NEW LOCATION – DECEMBER The DECEMBER First Friday Lunch will be UPSTAIRS AT MAC’S AMERICAN BAR, located on the new Sabana Road (the new one parallel to the Pista on the South side of the park) approximately two blocks West from McDonalds. (The November lunch takes place at the old location, Beso Restaurant.)

FROM ARCR: Go just past the exit / entrance to the Pista and turn West on the new parallel road. (There is a large Universal store on that corner, opposite McDonalds.) Mac’s American Bar is located in the second block on the left.

I recently renewed my BUPA trip insurance policy and was FROM ESCAZU: On the old road from Escazu, at the West end of delighted to find out that, though the first year cost $227, the Sabana Park, enter the new road parallel to the Pista, going East. renewal was only $166!

Everyone please take note that the Federal Benefits Unit (FBU) at the US Embassy is now closed on the first Tuesday of each month, in addition to the last Thursday of each month.

The FBU handles Social Security benefits, veterans and widows’ pensions, death benefits, and much more. When a veteran applies for a disability pension, the DVA may authorize the FBU to schedule an appointment for evaluation by a physician. Because of prior issues at some facilities, Ms.

After the third stoplight Mac’s will be on the right approximately two blocks before the McDonalds.

The lunch will start at 1:00 PM. There is no agenda and no schedule, just some good food and friendly talk. Attendees are responsible for their own food and drink expenses, of course.

PARKING is VERY LIMITED. Come early for a spot or park on one of the side streets.

Cover Shot Guanabana is a fruit commonly known as Soursop in English. It is a tropical Evergreen species native to Central and South America. It is known by various names throughout its growth areas, such as graviola, pawpaw, or guayabano. The fruit is commonly used for making juice, desserts, and even for ice cream bars.

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Wild Side LXIV

by Ryan Piercy

Barbets Most of us are familiar with toucans because they stand out so much, or maybe because of their appearance on cereal boxes. But how many of us are familiar with their little cousins, the American Barbets, Capitonidae? Though smaller in size, this group of little birds are quite interesting too, and easily as colorful as their more famous cousin. These short plump birds have large heads and get their name from the bristles that line their thick bills. In Costa Rica there are two different kinds of Barbets that can be encountered.

highland forest as its counterpart; generally located from 500 to 2800 meters.

In general, American Barbets are arboreal birds, which nest in pairs, frequently digging out a hole in a dead tree. They are not a migrating species and will lay from two to four eggs. Their diet consists of insects and fruits, of which they eat many varieties, and thus are able to adapt quickly with changes in available foods. Barbets will also regurgitate the seeds from the fruits they eat, thought to be an important factor in the disbursement of seeds in the tropical forests where they reside.

The Red-headed Barbet (Eubucco bourcierii) gets its name from the male of the species which has a brilliant, fiery-red head with a white neckline and small black eye mask. Its chest is a bright yellow while the back is green like a parrot.

Though not as bright in her colors, the female also has a green back, yellow chest, and a heavy black mask around the eyes. The bills of both sexes are yellow. Both males In Costa Rica the species are known as Barbudos. If you and females average about 15 cm long and weigh about 34 have the opportunity to go searching for them, look for the grams.

Barbudo cabecirrojo on the slopes of Arenal or the Caribbean side of the Cordillera Volcanica Central, and also on the Pacific side of the Osa. Barbudo cocora can also be spotted in the Arenal area as well as the southern central mountain range leading into Panama.

The Barbet’s diet consists mainly of bugs such as beetles and caterpillars, but they will also feed on fruits like guava and banana, as well as some berries. The Red-headed Barbet is considered common and seems to be in abundance. They breed from March through June and have a large range, being found from Costa Rica through Peru. When scouting for them, they can often be seen inhabiting humid highland forests, most often from 400 to 2400 meters in altitude, mainly nesting in dead trees, or sometimes in fence posts.

The other species found here is the Prong-billed Barbet (Semnornis frantzii), found in a range that extends from Costa Rica through Panama. Recent DNA studies may actually place this bird closer to the Toucan than the Barbet.

They are slightly larger than the Red-headed Barbet, being about 18 cm long. The sexes are similarly colored, with the head, chest and belly an ochre-orange with a black mask around its dark red eyes. They often form small bands of 12 to 16 individuals and are usually found in the same type of

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Connection by the Women’s Club of CR

A Melting Pot of Flavors?

Most people do not know that it is possible to go from San José to one of the most isolated communities in Costa Rica by public bus and public boat for under $15. We found that out in late 2009 when two members of the Women’s Club of Costa Rica (WCCR) and two outside volunteers delivered 100 books in both Spanish and English to the school in Tortuguero. The books were donated by the WCCR. We also delivered a computer printer which was a private donation to Tortuguero Village.

north, or paddling down a partially blocked river to Parismina, 22 miles to the south. Access to the cities of Port Limon or San José was very difficult. Getting there required walking the beach southward, crossing the river by canoe, then taking a mule tram and the train to the city, a trip that could take two to three days. To buy groceries for the restaurant, Tortuguero Village is an isolated community with less than Miss Sibella and her children walked eight hours to Barra 1,000 residents on the northern Caribbean coast of Costa del Colorado, carrying five gallons of coconut oil they had Rica. Located on the northern boundary of Tortuguero produced to sell.

National Park, it is bordered on one side by the Caribbean and on the other side by lagoons and connecting canals built Another way the Martínez family received supplies from the in the early 1940s by sawmill companies for the transport of outside world was to enlist the help of Miss Sibella’s brother, logs. The village can be reached only by boat. Of course, Artimeous Martínez, a boat captain like his father. Artimeous fish and seafood play an important role in the cuisine and traveled the waters between Barra del Colorado and the port it is best known for a fish soup called ron don, or run down, of Colon, Panama, carrying all sorts of merchandise. On his that people from New Orleans say reminds them of gumbo. journeys he passed by Tortuguero, but couldn’t come ashore Tortuguero National Park is famous for the leatherback, because of the shallow waters and lack of a boat dock on green and hawksbill turtles that dig nests and lay hundreds the seaward side. The surf was usually too rough to bring of eggs on the beach. During the hatching season egg shells his boat through the bar mouth, so an ingenious means of may be found all over the beach and the village. The season shore-to-ship communication was devised. When passing lasts from June to September, culminating in a popular Turtle Tortuguero, Artimeous looked to shore for the signal to stop, Festival in September. Today, turtles and their eggs are which was Miss Sibella waving her white apron to flag him down. She would then put her money and a shopping list protected from human consumption. in a tightly stoppered bottle and tie it to a turtle with a buoy.

The village is on a strip of land crisscrossed by clean gray On Sibella’s signal, Artimeous caught the turtle to receive the sand paths that become streams of water in the heavy rains, message. If he wanted to send something ashore, he sealed running between small houses and businesses from the it well, wrapped it with old rope, ran close to the breakers, and canal to the ocean. It is 500 meters long and 200 meters threw it overboard for the waves to take ashore! The system from the boat dock on the canal to the Caribbean beach. usually worked; but one day bad weather caused Artimeous Residents have a clean water supply, regular garbage pick- to miss the turtle currier and the message was not delivered. up and a recycling center. Groceries, including fruits such as A few days later an announcement was broadcast on the coconut pipa and home-cooked foods, are delivered by foot radio saying that a turtle had been found in Panama with a shopping list and money in a bottle. When the recipients or bicycle with baskets designed for that purpose. found out what had happened, they sent the supplies to Miss Tortuguero Village has a rich culinary heritage. Most of the Sibella and sent her the money back as well! food in the dozen small restaurants and bakeries are made daily or to order. Ingredients are fresh, using mostly locally Between 1940 and the 1980’s, Miss Sibella’s restaurant grown products. Preservatives are rarely, if ever, used in served many meals to many people. The sawmills of the Atlantic Trading Company were installed on part of her local cooking. property and Tortuguero grew from five to 100 families The first small restaurant was opened in 1940, when Miss because of employment in the sawmill and banana business.

Sibella Martínez, daughter of Tortuguero Village founder, All their meals were provided by Miss Sibella and her Captain Walton Martínez from the island of San Andrés, daughter Miss Junie, who began to cook when she was nine turned her house into a dining room to feed people. At that years old. She moved on to cook for turtle researchers of time the village was mostly jungle and inhabitants were few. the Caribbean Conservation Corporation, members of the There were no stores, no school, no electricity, and they got Cuban Pro-Castro revolution who trained nearby, followed their fresh water from wells they dug themselves. Since then, by the Castro opposition who also trained in the area, and three generations of cooks have fed workers and owners of finally the National Park Service staff and numerous visiting dignitaries including presidents, ministers, and other national many companies, researchers, and dignitaries. and foreign personalities. Miss Sibella died in 1990 but Miss Early life in Tortuguero was very isolated from the outside Junie, along with her older daughter, have continued the world. Making contact meant walking or riding a horse up the Continued on page 7... beach to Barra del Colorado, the next village 16 miles to the

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tradition of good food for Tortuguero Village residents and visitors.

After the 1990s tourism increased asTortuguero became a destination for researchers, scientists, and backpackers, primarily students and adventurers. The cuisine of Tortuguero was affected by these people from all over the world. Some opened restaurants and bakeries; others simply shared their recipes.

Women’s Club member, Viviana Weigel, arrived in Tortuguero in 2007. She lives in a small cottage in the village, which she calls “Mi Casa Su Casa” that is only 200 feet from the ocean.

Viviana has rebuilt the cottage, adding modern conveniences and furniture that she created from driftwood, as well as a Spanish versions in the same book. few bamboo pieces made by Brian Erickson who lives in Guapiles. Mi Casa Su Casa is filled with local artwork, The cookbook was designed by the children of Tortuguero Village. They and their teachers have taken an active role in mostly created by Viviana herself. its production; the cover has artwork from the children and, Viviana arrived with 86 children’s books in English and for each section with a given category of food, we asked them promptly began sharing them with the local children. By to describe and draw color pictures of their favorite food.

2009 the books were dog eared and in tatters and needed replacement. She contacted a member of the WCCR All proceeds will go for projects to benefit the children and Committee, which donates children’s books to schools, and their teachers. The first project, appropriately enough, is subsequently joined the Women’s Club. In 2009 and again in to repair the kitchen in the teachers’ quarters so that they 2011, Viviana donated a two-night stay in Mi Casa Su Casa will have an incentive to remain in Tortuguero with their as an item for bidding at the Women’s Club Silent Auction students. to raise funds for such projects. Local businesses also If you would like to assist us in this project in any contributed to her auction package. way, by kitchen testing a recipe, or donating funds or A challenge facing the residents of Tortuguero is keeping expertise for its production, please contact: Viviana teachers who are dedicated to the long-term education of the Weigel at weigelviviana@gmail.com, or Martha Rollins at local children. To be effective, they need to have adequate rollinsmartha@gmail.com living conditions within the village itself. The teachers are doing their part; they have recently painted their own quarters and are combining resources, including a portion of their salaries, to pay for the repairs. The kitchen, however, is still in need of serious renovation.

To raise money for the renovations, Viviana, along with local cooks in the village, came up with an idea for creating a cookbook to sell to tourists. Now, with the help of the teachers and the children, it is in its second draft. The 2009 computer printer donation is dedicated to production of the book.

We have tried to follow the traditions of Tortugero in the book and Miss Junie is not only working with us on it, but has shared her recipes for such dishes as coconut ginger candy, breadfruit chips, and traditional ron don with us.

Each contributor has a story and we have included, wherever possible, a little background on them, as well as the recipes they have shared. For instance, Miss Evelyn learned to bake from her father who was a baker in Jamaica and migrated to Costa Rica, then Nicaragua. She makes delicious breads and pastries like pan bon, soda cake with ginger, pubulisa, rodeles, and meat patties. Her granddaughter helps with the baking and her grandson sells her baked goods door to door in the village.

When it rains it is common to see a parent with a large umbrella carrying children by bicycle to the school. The residents are Afro Caribbean, Costa Rican, Nicaraguan, European, Canadian, Asian and US American. Both Spanish and English are spoken by adults and children alike, and the cookbook reflects that tradition with both English and

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Costa Rica Liv vin ng

by Jack Donnelly

Agüizotes...

Agüizotes are the folk beliefs, small superstitions or minor brujería (witchcraft) of Costa Rica. One writer calls them the magical roots of Costa Rica.¹ They encompass all aspects of life: love, death, birth, luck and the small daily annoyances that plague us all. One saying goes, “Para la suerte y la muerte, no hay escape” (For luck and death, there is no escape.) Escape may be well beyond our mortal powers, but it is altogether human to try to bend luck in our favor.

ordinarily love all things kitchen. However, they refused it, explaining that sharpened gifts “Se corta la amistad” (cut the friendship.) They accepted it on long-term loan, mine to reclaim whenever I wish. It is also bad luck to leave scissors open.

Love – Any magic worth the name must have the power to call up love. There are a number of spells for this, but a love potion can easily be prepared by boiling the undergarments of the love seeker. The resulting liquor is slipped into a beverage and given to the object of their desire.

One story tells of a smitten young lady hiring a bruja (witch) to enchant her intended. The older woman watches her bathe, dress and apply her makeup. When asked for the spell, the witch replies, “You are the magic.”

Unwelcome Guests – To cut short a bothersome visit, simply place a broom, upside down, behind the door.

For those empiricists who refuse to believe in anything Dancing with Priests – An unmarried woman who dances beyond the world they feel to be scientifically validated, the with a priest will remain single to dress the saints. appropriate Tico saying is, “No hay que creer, ni dejar de Noxious Animals – Poisonous snakes will be calm and creer” (It is not necessary to believe or disbelieve.) cooperative in the presence of a pregnant woman. Spiders We North Americans are certainly no strangers to a raft of are good luck and should not be killed. similar personal sorcery. We knock on wood for luck or to ward off some expectation of malevolence. We throw salt New Year Charms: over our shoulder (right hand, left shoulder) after a spill.

I know many rational educated people who went to great • This is to ensure that food not be lacking in the coming year. On December 31st you should cut a loaf of bread, trouble to bury a statue of St. Joseph, upside down, on their stuff it with beans, rice, sugar, cinnamon and a pinch of property in order to conjure up a buyer for the house. Even salt, tie it with a red ribbon or string and hang it in the the most modern of skyscrapers gets an evergreen tree to corner of the kitchen. top off the highest structural member, as an entreaty to the • On New Year’s Eve you should ask thirteen people for a Pagan powers that be to grant luck for the building. coin of the same denomination. This brings good luck.

We also have many ethnic and regional beliefs. In the South, • To realize a desired trip in the coming year you should pack your suitcase with personal items and carry it the New Year is started with a meal of black eyed peas, around the block at midnight on the 31st. greens and pork. On this day, lobsters are bad mojo because they move backwards, while pigs root forward. A main course • On the 31st or the 1st, collect a bouquet of Santa Lucia flowers (a small purple flower that grows at altitude.) This of winged fowl is also mangled magic as it could allow the ensures work in the year to come. luck to fly away.

• For good luck, on New Year’s Day you should wear something yellow. Some people consider underwear the The agüizotes of Costa Rica vary widely by region, ethnic more potent charm. group, age and even by family. La Nación did supermarket interviews about them last December and found a wide variety of family New Year practices involving food, herbs This may not be a topic that everybody will be comfortable talking about. Nobody wants to be seen as superstitious, and spices. much less a communicant of the dark arts. Ask your Tico There are countless examples of Costa Rican agüizotes friends what they do in the way of New Year traditions. Watch and few Ticos would be familiar with all of them. Many are for another article in La Nación and keep an eye out for practiced with several variations. Following are some that I different herbs in the supermarket in December. have encountered or read about: The book, LOS AGÜIZOTES Raíces mágicas de Costarrica Knock on Wood – This is attributed, in both cultures, to the (the author firmly prefers what he calls the Huetar spelling Christian cross, made of wood. It likely goes much further versus the “Spanishized” version), is a very difficult read. If back to the animistic belief of spirits residing in trees. If you there is enough interest, it might be a better project for a are really serious about it, you will knock three times (Trinity?) reading-discussion group. An older Costa Rican would be a Interestingly, in Spanish you will also say, “Machalá”, an great asset. It is a wonderful and comprehensive guide to the Arabic word meaning, “Dios no lo quiera” (God forbid.) There subject. are many such words in Spanish left over from the almost 800 years that the Moros, Berbers from Northern Africa, Jack Donnelly San Pablo de Heredia occupied at least some part of Spain.

Scissors or a Blade – At one point, I realized that I had too ¹ Dionisio Cabal Antillón. LOS AGÜIZOTES Raíces mágicas many knives. I tried to give one to some close friends who de Costarrica. 1 ed. San José, C.R.: D. J. Cabal D., 2009.

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The Cuchara Ricca

by Celina Carazo Garnier

In The Fruit Bowl: Guanabana The guanabana is a delicious fruit from the American tropics whose botanical name is Annona muricata. The guanabana tree reaches approximately 8 to 12 meters high and bears a large fruit with an average weight of two kilograms. The fruit is covered with a thin shiny green peel with soft thorns that, Guanabana Cake 250 g (two bars) of butter when ripe, becomes opaque and soft when touched. The 1 1/2 Cups of sugar sour flavored pulp is creamy and has a soft, meaty texture 4 eggs which contains numerous hard, black seeds. Due to its 2 1/2 cups of flour considerable size and cost it is often sold in slices.

3 teaspoons of baking powder 1/2 teaspoon of salt Until a few years ago, Costa Rica had only a few, scattered 1/2 teaspoon of nutmeg guanabana trees. The recognition of the importance of this 1 1/2 cups of guanabana pulp fruit in the agro-industrial market, both within Costa Rica 1 cup of sliced almonds and on an international level, has awakened an interest in 1/2 cup of raisins developing its commercial growth.

Confectioner’s sugar Guanabana grows from sea level up to 1000 meters. The optimal altitude for its cultivation, however, ranges from 400 Beat the butter with sugar until very creamy. Add the eggs to 600 meters above sea level. The main plantations in one by one and continue beating. Mix flour, baking powder, Costa Rica are located in the cantons of San Carlos, Upala, salt, and nutmeg. Alternating with the pulp, add the dry Guácimo, Limón, Matina, Siquirres, Garabito, Parrita Pocosí ingredients mix to the butter mix. Put the mix in a welland Aguirre. Its growth requires an average 25 to 28 degrees greased and floured chimney pan and bake at 200 C (350 F) for approximately one hour. Take the cake out of the mold C, since it is a species susceptible to cold weather. and sprinkle with confectioner’s sugar for decoration.

Harvesting of guanabana is carried out when the fruit has reached its maturity; when it loses its shine and its green Guanabana Dessert (approximately 10 servings) 3 cups of guanabana pulp color becomes darker. This is when the fruit is able to bear 3 tablespoons of flavorless gelatin handling and transportation.

1/2 a cup of water 1 can of condensed milk To use guanabana in different preparations, the fruit must 1 cup of cream, chilly. be soft when touched; at this point the peel easily comes off. a dash of brandy or rum Once opened, the seeds must be removed, leaving the pulp, which must be either pressed very well, or blended.

Whip cream until it thickens. Add the guanabana pulp and Regarding its nutritional value, it must be pointed out that condensed milk to the whipped cream. Hydrate the gelatin in the main ingredients of the fruit are water, vegetable fiber, the 1/2 a cup of water, warm it up until it dissolves and then calcium, phosphorus, and vitamin C (ascorbic acid). Fiber, as add it to the mix along with the brandy or rum. Mix well. Pour has already been mentioned in previous articles, is crucial for the mix into a moistened mold. Refrigerate until it finishes movement and waste elimination of the large intestine, which thickening. Take dessert out of the mold. contributes to prevention of diseases such as appendicitis, diverticulitis, and colon cancer. Additionally, the water, If you wish cover the dessert with the following syrup that phosphorus, calcium and vitamin C contribute to the health you prepare with: 1 small case of strawberries, mashed. of different tissues, and to the regulation and functioning of 1/2 a cup of sugar our body. (Some articles attribute certain anti-carcinogens to 1 tablespoon of cornstarch (maicena) the guanabana, but are without any scientific back up.) a couple drops of red food coloring (optional) Cook the ingredients in a small pot at low heat, mix until it You can enjoy the flavor of the guanabana in a drink by simply thickens.

Remove from heat and let it cool before you cover blending the pulp in water or milk and adding sugar to taste.

It can also be blended with yogurt or ice cream. Sometimes the dessert with it. you will be able to find the pulp ready for consumption in the --------------Celina Carazo Garnier is a Dietitian, graduated in Argentina, market. and with 30 years experience in the field. She worked in the Clinica Biblica, the University of Costa Rica, and was head Following are two recipes for using this fruit in desserts. of the Department of Nutrition for the Ministry of Health in Enjoy!

Costa Rica.

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remedy to avoid this kind of risk. The answer is Yes.

Legal Update

by Allan Garro N.

Close the Deal Safely: Priority Reserve Many deals involving property transactions take place in Costa Rica on a daily basis. Registered properties are sold, mortgaged as guaranty for a loan, or transferred into a Trustee’s name based on a previous trust contract, just to name a few examples. However, it seems that in every deal one party gets more nervous than the other, not sleeping well until it becomes possible to confirm the document has been filed in the National Registry successfully. For a better understanding let’s look at a couple of examples: 1. Mortgage loan. One person, Person A, decides to request a $300,000 loan from a money lender, Lender B, offering a clear property title as a guaranty. Lender B hires an attorney to perform the due diligence to verify the property status as well as an appraiser who confirms the value of the property. Once everything checks out, a contract is signed in a notary’s protocol book. Person A then receives a certified check from Lender B and signs the mortgage against the property. Once this happens, Lender B might get a little nervous thinking Person A could be a dishonest person and could have previously mortgaged or sold the same property in a different notary’s office, in which case whoever files the document first gets priority in the Public Registry. The usual practice is for Lender B to pressure the notary to file the paperwork promptly to ensure the document is first in line, so Lender B can have peace of mind.

2. Property transfer. The same person, Person A, decides to sell a house that has a current market value of $500,000 to Person B, a retired investor looking to buy a property in Costa Rica to be used as a second home. Person B hires an attorney to perform the necessary title research and an engineer to inspect the construction. Once there is agreement on the sale price and conditions, the closing takes place. Person A gets a check and signs a transfer deed in favor of Person B. There may now be concern on the part of B that A may have sold or mortgaged the property in a different lawyer’s office.

Again, whoever files the document first has priority in the registry.

In either case, only Person A would be aware of the dishonest actions and that they would not be discovered until more than one document was presented to the National Registry, thus forcing the creditor or buyer to start a legal nightmare in Court against Person A (and the others involved in the alternate transaction, who are usually victims also.)

Article 34 of the Ley Sobre Inscripción de Documentos en el Registro Público – Law about Document Registration at the Public Registry - creates a legal tool named RESERVA DE PRIORIDAD – Priority Reserve - which can be valuable prior to closing any deal involving property. It is basically a document prepared between the parties, before a Public Notary, stating their intention to complete a specific transaction in not more than 30 days. Once signed, the document is sent to the Public Registry where it becomes a notification that the transaction has priority over any other documents that might be filed. In this way, the lender in Example One, or the buyer in Example Two, has nothing to worry about, and the notary doesn’t have to run to file documents in the Registry as long as filing is done within 30 days of the granting of the priority reserve.

To file a Priority Request document at the Public Registry costs only 2.000 colones - about US $4.00 - plus fees charged by the Notary.

If the 30 days of approved priority expire and the parties decide against the transaction, the property owner can request that the annotation be deleted from the property, clearing the title.

However, in some property transactions, particularly property sales, the parties may need longer to prepare the closing, so again the question arises as to whether anything can be done. The answer is YES again. In this case it is best to prepare a purchase agreement, not as a private document, but as a public instrument signed before a Notary, to be sent to the Public Registry as an annotation granting priority over further documents. In this case the Registry will respect the term agreed to by the parties.

Some expats might prefer to buy title insurance to protect their transaction. There are at least two companies that offer this service in Costa Rica. The only downside to using one is the cost; in these times we try save as much as possible.

In any case, whichever way is chosen, it is recommended the transaction be completed as safely as possible by hiring qualified professionals and looking for the best tools available within our Legal System.

A SIDE NOTE. On October 1st 2009 the Ley de Impuesto Solidario para el Fortalecimiento de Programas de Vivienda, best known as the Luxury Homes Tax, came into effect. This law basically levies a special tax against properties with a construction value of over $200,000. It was supposed to remain in effect for only 10 years, however there is a saying that “nothing is more permanent than a temporary tax” and this tax is not an exception. On August 31st 2011, a notification appeared in the Official Gazette stating that an amendment approved by the Costa Rican Congress turned this tax from temporary to permanent. The original fines were outrageous, but the better news is that the same amendment lowers the fines imposed upon those who do not make the required declaration of value and pay the tax. It is, however, important for individuals or corporations owning luxury homes to abide by the provisions of this law to avoid future problems with the Costa Rican revenue department.

This type of scam has happened many times, so it has become the usual practice for the Lender or Buyer to immediately run to the Registry as soon after documents are signed as possible. This is followed by a check on the internet to ensure the documents are shown in the correct Allan Garro N., Attorney at Law order. A logical question is whether or not there is a legal law@licgarro.com

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November- December 2011

13

A Day In The Life e

by Allen Dickinson

A New Years Resolution: Get Registered With The Embassy This article was previously published, in a different form, in the Tico Times. The information is re-presented here, with permission, for those who didn’t read it there.

Foreigners in Costa Rica are encouraged to register with their respective embassies when they come here. Proof of registration is even required as part of the Costa Rican residency application process. Many persons, however, unless applying for residency, don’t bother. That may be a mistake.

to track them and hunt them down. That’s a possibility I suppose, but the primary reason that embassies establish registration programs is for the benefit of the expat.

For instance, ARCR President Mel Goldberg tells me that the Escazu Post of the American Legion frequently encounters situations where an American citizen is either seriously ill or has died and the family back home needs to be notified.

The importance of registration was sharply illustrated to me However, many times there is no information on them recently when a letter was mis-delivered by the Costa Rican recorded at the embassy and, therefore, the next of kin can’t Correo (postal system) to my home in Santa Ana. I was be contacted. the second Gringo recipient; the first had opened the letter and written “Re-mailed (date)” on the letter and apparently There can be other situations where the information at an returned it to the post office. The Correo then tried to deliver embassy can be crucial too; like times when the expat’s it again by bringing it to my house. (I guess all Gringos look family in the home country needs to contact the person here alike to the Correo.) to inform them of some sort of family crisis.

Anyway, it was a fairly important letter from a US government agency awarding money to the addressee, who had given them their address in the standard Costa Rican style; 300 meters Oeste Cruz Roja, 100 meters Norte, Casa Blanco, 20 meters Oeste, Casa Naranja, Santa Ana, Costa Rica. (Okay, I made that up, it’s not the actual address, but you get the idea.)

After realizing the letter wasn’t for me, I began a casual inquiry around this relatively small town, checking the local watering holes and places where Gringos hang out and asking long-time residents I met if anyone had knowledge of the individual. Nunca.

When nobody was able to identify the person locally, I had someone query the U.S. Embassy, but they had no record of the addressee either. So I called several American expat organizations in the Central Valley, including ARCR, the Democrats Abroad, and Republicans Abroad groups. Not known there either.

Another occurs when an expat here has been involved in an accident and the Costa Rican authorities need to get information to / from relatives back home before complete medical attention can be given. In those situations, the contact information can be crucial.

In all cases, accident, family emergency, etc., the first point of contact is always the individual’s embassy.

Some persons may not bother to register because they subscribe to the motto of a well-known bar in Sabana which claims Costa Rica to be the “Home of the Wanted and the Unwanted” and they don’t want to be found. Or maybe registering is simply something they intended to do but overlooked or forgot. Or, they thought it was too difficult.

Whatever the reason, registering with the embassy can be important and something every person living or traveling outside their home country should do. Even visitors should notify their embassy of their whereabouts. Emergencies are never planned ahead, and if one occurs, its too late to do it then.

It’s been months now and I still haven’t located the person and their letter has not been delivered.

So, here’s your News Years resolution: If you haven’t done so, register. It’s a simple process: For U.S. citizens, go on line to I know, some people don’t want to be found and think that Continued on page 15... registering with their embassy will enable their government

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the U.S. Embassy web site, http://costarica.usembassy.gov/ living.html, find the “Smart Traveler Enrollment Program” (STEP), and fill out the form – there is no need to physically go to the embassy or speak with anyone.

Canadian citizens wishing to register their presence abroad can also accomplish the task on the Internet by going to: http: //canadaonline.about.com/od/travel/qt/registerabroad.htm.

If you don’t have a computer or just need help, contact the front desk of ARCR and they can assist you.

(Other nation’s embassies may or may not have an Internet presence and/or require a physical appearance. A short phone call to the appropriate embassy should easily get that information.)

In any case, registering with your embassy is important. It’s quick and painless. And, who knows, maybe someone is trying to send you a letter with money in it. Wouldn’t you like to get it?

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: allen@humphree.net

November- December 2011

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Health Care

by Shirley Aguilar Salazar r

Medical Spas The last time you were reading a magazine or a newspaper, did you perhaps see something mentioned called a medical spa? Did you wonder what that meant? What is a medical spa? What do they do there? Would it be something I might be interested in?

The answer to these questions is: Medical spas represent the fusion of health care and beauty services involving modern technology in skin care. It is the use of advanced technologies to provide a medically based procedure, supervised by a medical physician, designed to cause a significant cosmetic The laser that is used to treat lentigos and other benign change or enhancement. These services can involve the use lesions looks like a TV set with a Jetson’s-like tube on top which is attached to a plastic wand the doctor holds in their of lasers or other energy based devices. hand and uses to fire highly concentrated, high velocity light Sun spots. Age spots. Liver spots. People call them all waves. Laser treatment - in my case, for purely cosmetic kinds of things, but most are solar lentigos like mine. They purposes - is only for benign spots. have nothing to do with livers, with drinking, or with nerves.

Most come solely from exposure to the sun. Genetics can All kinds of topical bleaching products promise spot removal, play a backup role, as in some skin types; usually lighter, too. These help uneven, mottled pigment, but there’s no paler-complexion, and more freckle-friendly. The most topical bleaching agent that helps with one of the big brown interesting thing about lentigos is that a high powered laser spots that come from the sun. can remove them.

For those of us lucky to be dotted only with these, the laser My case: Each ¨discrete spot¨ (not discrete enough for treatment is ideal. my taste, thank you) was targeted and blasted with high intensity light waves. The extra pigment (when stimulated A medical spa can give you solutions to nearly every cosmetic

by UV radiation) which originally brought the spot into being, enhancement you can dream of, everything from the removal absorbs the light, turns it into pigment-shattering heat, of unwanted hair, cellulite reduction, acne scar treatment, and…zap, Good bye. The former spot site will get scabby wrinkle treatment, stretch marks, photo facials for pigmented (sometimes), but if you stay out of the sun, it will be gone and vascular lesions, treatment for leg veins, etc., etc. forever.

More and more people are learning the wonderful benefits The entire experience is quick, relatively painless, and, of making medical spa services a regular part of their dayassuming proper sun precaution afterward, permanent. ¨A to-day lives. The new world of high technology skincare can nice treatment.¨ that’s what I call laser spot removal. It is the give you the confidence to feel good about the way you look, one-and-only known procedure that can undo sun damage. feel your best, and to get ready to enjoy life more fully.

Oh, did I mention that it’s relatively inexpensive?

There is one catch. You can’t get your spots zapped if you have any trace of recent sun exposure - tan or burn - this would increase the risk of hypo-pigmentation, a dermatological condition that leaves washed-out, pigmentless patches on the skin and thus, an unfortunate choice: brown spots or white spots? Better to wait several weeks after vacation, when all remnants of sunshine induced color have completely faded. It probably doesn’t qualify as a risk notice that you are covered with them - everywhere.

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November- December 2011

17

Children Are Ou ur Future

by Sylvia LeĂłn Koberg

Environmental Education Programs FundaciĂłn NeotrĂłpica is a local, non-governmental, nonprofit organization, founded in 1985. It is one of the oldest and most consolidated NGOs in Costa Rica. Its mission is to seek a fair balance between conservation and community welfare. NeotrĂłpica, as a socio-environmental organization, has dedicated itself to work with communities to fulfill this goal by concentrating on areas such as community empowerment, natural resource management, training and technical assistance to small entrepreneurs, sustainable productive solutions, such as wetlands conservation, and rural community tourism, among many others.

who have already participated in the program during previous years.

The Fundación Neotrópica’s programs are supported by corporations such as Grupo CESA, a technology based company that has trusted the foundation for many years.

If you as an individual or company want to support FundaciĂłn NeotrĂłpica’s education initiatives with your NeotrĂłpica’s Environmental Education Program, known time, talent or funds, call: (506) 2253-2130 or write to: as “Friends of Nature,â€? seeks to apply a methodology, info@neotropica.org. based on a series of workshops, which teaches children about sustainability through games, group work and basic environmental concepts. The program is one of the most committed and emotive programs of the foundation and is implemented yearly in community-based Costa Rican public schools.

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The main objective of the program is to sensitize young boys and girls to the basic concepts of environmentalism; teaching them about such things as the protection of water resources and watersheds, the responsible disposal of solid waste, and the conservation of our National Parks. This constructive process educates both students and teachers in the culture of “respect to all living forms.�

Neotrópica has just begun in August 2011, a new series of environmental workshops with a first grade group of deaf children. This particular Environmental Education Program is undertaken in the Centeno Gßell, Costa Rica´s unique education center for children with special needs. This is the fourth year that Neotropica has implemented this program with deaf children; the process started in 2008 with a small group of first graders who assisted in the program until they were in third grade.

This year the process started all over again with a new group of first graders. They, however, will have a big advantage over their predecessors; there will direct collaboration in the workshops from their peers, the fourth grade deaf children

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EL RESIDENTE 2011

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Central or South America. The group currently puts on a minimum of 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 2271-5556 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 Its Time... for the Annual Canadian Club & ARCR Christmas Dinner Dance! Tickets are now on sale at the ARCR or Out Of Bounds hotel for a price of ¢18000 per person. Space is limited, so don’t delay, buy today. 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

November- December 2011

Marine Corps League Meets at 11am 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 11 am, 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.

19

Learning The Language

by Christopher Howard

Drivers Test Vocabulary Many foreigners who move to Costa Rica eventually want a vehicle, and need to obtain their Costa Rican License. In many cases you will not need to take the test, however the following vocabulary is also useful for daily driving and understanding the language on the road.

Accidente – accident Autopista or pista – highway Brincarse un alto – to jump a stop sign Cambiar de carril – to change lanes Carril – lane Carril de asenso – passing lane Ceder el paso – yield the right of way Chaleco – vest Choque – a car crash Choque frontal – a head on collision Condución temeraria – reckless driving Correr – to speed Cruce or intersección – intersection Derrumbe – land slide Despacio –slow Desviación or desvio – detour Direccionales– turn signals Señales de giro – turn signals Emergencia – emergency Gata – a car’s jack Girar o doblar – to turn Hombres trabjando – men working Impugnar or aplelar – to appeal a ticket Limite de velociad – speed limit Luz amarilla – yellow light Luz roja – red light Luz verde – green light

Multa or parte – fine or ticket No adelantar – no passing No hay paso – road closed No virar – don’t turn No virar a la izquierda – no left turn No virar a la derecha – no right turn Pasar un señal de alto – to run a stop sign Pasar un semáforo en rojo – to run a red light Preferencia or paso or vía – right of way Peaje – toll booth Peaton – pedestrian Peligro – danger Placa or matrícula – license plate Puente angosto – narrow bridge Reducir la velocidad – slow down Reductores de velocidad – speed bumps Policías durmientes – speed bumps Semáforo – traffic light Señal de alto or un alto – stop sign Tráfico – automobile traffic or a traffic police Tránsito entrando – merging traffic Triángulos – emergency triangles Un solo caril – one lane Una vía – one way Velocidad – speed limit Zona escolar – school zone

Here is your Costa Rican expression (tiquismo) for this week: A “chuzo” or a “nave” is a cool car, while a “picón” is a drag racer who like to “picar” or drag race. Coming off the line he will “quemar hule” which is to burn rubber, in order to “rayar la competencia...” Pass the competition...

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November- December 2011

21

Dollars & $en nse e

by Alan Weeks

many mistakes, Steve Jobs learned from the school of hard knocks and became one of the greatest entrepreneurs and creative genius in history. He also had the amazing combination of qualities as both an innovator and an inspirational leader. Thus, Steve Jobs is the personification of the American Dream!

It seems appropriate at this moment when Capitalism is being demonized by some, to remember that the company Mr. Jobs created, Apple Inc., is a corporate entity funded by millions of happy investors in an economic system that is American capitalism. In addition, Mr. Jobs could not have TOUGH CHOICES, BIG OPPORTUNITIES As mentioned many times, the U.S. and the world are not in achieved his phenomenal success without an international a normal business cycle recession. The current prolonged economic system of free trade and open financial markets slump was brought on by far too much borrowing, and now our that is globalization. balance sheets have to be repaired by deleveraging at the same time the assets we bought in the “boom” years are now Because there are many other great American scientific and falling in value. What’s more, long periods of deleveraging technological breakthroughs that keep coming, we believe the 21st century will be no different. Of course, there are and have almost always followed a major debt crisis. will continue to be calamities, but great opportunities will also Trust me, there is no magic wand that can be waved or be created. pixie dust that can be sprinkled to make this go away.

America is blessed with an abundance of natural resources, The reality is that governments have done very little that was but the greatest of them all is the human mind. Americans constructive, and they cannot create jobs. Most of what they continue to be renowned for their creativity, resourcefulness, do seems destructive, something they seem very good at. imagination, risk-taking courage, and the strong drive to Now would be a good time to do as much as possible to get succeed. out of the way.

Many examples of new scientific, medical, and technological The idea that creating jobs will lead to growth and prosperity innovations and breakthroughs continue to be reported. is a fallacy that is at the heart of the misguided jobs spending Some examples are: programs. As one pundit said, “It puts the cart before the 1. New medical breakthroughs indicate that researchers could be on the cusp of curing liver disease, Alzheimers, horse. It’s actually the other way around. Growth creates and other debilitating diseases, such as cancer. employment, employment doesn’t create growth.”

2. Biotech and nanotech developments have huge potential.

Because there has already been scads published about the 3.

New breakthroughs and application of technologies have global debt crisis as well as how grim the future could be for created a very recent revolution in U.S. domestic oil and the economies and markets, it would be a waste to spend natural gas. Industry leaders believe that, with the right any further time and space on these, other than to provide a set of natural energy policies (without subsidies); the summary and comments at the end of this article.

U.S. could be completely energy independent by the end of this decade.

I much prefer to keep our focus on the great opportunities for Americans over the next decade.

Looking at the big picture on U.S. energy, here are some key points: THE “LAND OF OPPORTUNITY” I, and many others, still believe in the American spirit and (a) The U.S. is hooked on oil. About 70% of it is used for transportation, two-thirds of which is refined into gasoline in the country that so many in the past, as well as recently, for automobiles. Of course, it is nice to have aspirations flocked to as the Land of Opportunity. about renewable energy, but the U.S. Government and the American people need to recognize these are longJust think back on what we learned of the many horrendous term goals. There are vast costs and scalability issues happenings over the 20th century that Americans overcame with renewable energy sources yet to be addressed. In for themselves and the world. Many bad leaders and regimes fact, as recently as 2009 the U.S. Department of Energy did humungous damage to masses of people, and “shook expected the U.S. to have reduced its liquid fossil fuel the world” in the last century. Yet, we are here; and despite it consumption only 2% by 2030. all, many sparkling U.S. businesses and stock market gems, such as Wal-Mart, Microsoft, Intel, McDonald’s, Home Depot, (b) The revolution in oil and gas production has created the nation’s fastest growing manufacturing sector since Apple*, and many others, were created and flourished.

2005. *With the premature passing of Steve Jobs, many tributes (c) If creating good-paying jobs was a priority in the U.S., one need look no further than North Dakota, the state are still flowing in. He is already being called the Edison of Continued on page 23... our times. In spite of being another drop-out and making

America- Still the “Land Of Opportunity”

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with the lowest unemployment rate in the nation, still with 18,000 unfilled jobs, and a housing shortage. (d) If reviving economically suffering parts of the country was a priority, Pennsylvania, under the leadership of a Democratic Governor, developed flexible regulatory requirements with constant updating to protect the environment and still keep pace with a rapid growing industry and job creation. [More on environmental risks later] (e) If national debt and deficit reduction was a priority, allowing domestic energy production could make the greatest contribution to repairing America’s battered balance sheet.

One industry leader believes the federal government could raise $18 Trillion in royalties alone, over time.

That is more than the national debt.

In addition, the U.S. Trade Deficit could be cut in half, keeping money and jobs at home.

Again, any doubters about there being huge government and individual financial benefits from domestic oil and gas production, should study North Dakota. Thanks to the recent boom, the state has a budget surplus from oil income and is considering ending personal income and property taxes.

It should also be noted that today in America there are 10 million royalty owners across the country who receive payouts for the oil drilled on their land.

There are also millions of happy investors in domestic oil companies. Thus, the wealth is being widely shared. (f) Now, let us address the claims, including the fictional ones, about damage to the environment by domestic oil & gas production. First, it needs to be recognized that all forms of energy production have risks and environmental costs. For example, while the oil industry is being charged and condemned for causing the deaths of tens or even hundreds of migratory birds, it was appalling to read reports that wind turbines are killing many thousands of birds each year, including already endangered species.

In addition, if pollution was the key objection: Why is producing the oil, so essential to fuel U.S. cars and trucks, being made such an issue, when vehicular pollution is such a huge problem and, in major cities is so significant and toxic to its residents? This is still not getting enough attention.

For those wishing to rush the development of nonpolluting electric cars, where do they expect the electricity to charge the batteries will come from? The fact is that even with huge subsidies, the green energy niche markets are supplying only 2.5% of the U.S. energy needs, and are still not commercially feasible.

the development of other energy sources, such as gas hydrates.

I believe the whole focus of the nation needs to be changed back to the promotion of growth and prosperity that is there to be harnessed, and away from building regulatory fences.

It should be apparent by now that no amount of rules and regulations ever created has stopped the fraudulent actions, or the negligence, of a relatively few operators with no moral compass to control their actions.

In conclusion, it has been my own long experience that most great ideas, innovations, and improvements have come from the people closest to the action. Of course, leaders are needed to create the positive environments that allow the ingenuity and creativity of the people to flourish.

SUMMARY AND CHALLENGES

COMMENTS

ON

KEY

GLOBAL

A. THE GLOBAL DEBT CRISIS The current financial crisis is foremost a sovereign debt issue, and this changes things profoundly.

The fact is that over the last 30 years or so, the greatest debt bubble in history produced unprecedented prosperity in the western world. But now, the debt bubble is starting Continued on page 24...

I have presented reasons why I believe the U.S. should set the short-term goal of being energy independent by the end of the decade and enjoy the huge job creation and financial benefits from same. Some parallel goals should be to continue strong support of all efforts to: conserve the use of the precious resources, water and oil; improve ways and means to protect the environment; use the huge energy production paybacks to finance the refurbishment of the country’s crumbling infrastructure; and even explore

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23

to burst and the bills are coming due.

Because the excessive debt is so widespread, particularly throughout the developed world, a global solution will have to be developed.

A re-capitalization of the European banks would seem to be an essential first step. In addition, an Emergency Plan B, similar to what is being done in the U.K., has been proposed by a knowledgeable independent group. While this Plan is not perfect, it really seems to take a whole lot of the risks off the table, and keep the banking system from falling over.

B. SIGNIFICANT STRUCTURAL IMPEDIMENTS TO GROWTH Significant structural impediments have severely impacted the labor forces of developed countries. (a) Globalization has hollowed out the labor markets. (b) Technology has obsoleted entire industries that used to produce physical as opposed to internet provided goods and services. Examples are: books, records, postal letters, and DVD’s. (c) Two critical gears essential to all past recoveries, housing and jobs, have not yet engaged. (d) An aging demographic favors savings rather than consumption. (e) The balance sheets of many, from individuals up to the federal levels, are still extremely bloated. (f) The main reason U.S. companies are reluctant to hire is that there is no demand. (g) Almost all remedies proposed by U.S. and European authorities to date have favored capital rather than labor. For example, near-zero interest rates have allowed profit margins of many companies to widen, even in the face of anaemic end demands. In addition, productivity has remained high because of layoffs and production with fewer people.

Meanwhile, prudent savers can no longer earn anything on risk-free investments. Risk-Taking is being forced upon many trying to sustain their lifestyle.

C. THE U.S. & GLOBAL ECONOMY There is a clear and present danger that the world will slip from a recession into an intractable depression. And, with all categories of demand turning negative, the danger of a selfreinforcing vicious cycle is becoming all too real.

The proposals presented in this article are intended to keep the focus of Americans on what they have accomplished in the past in spite of horrendous circumstances, and what is being achieved on a continuing basis as the way to prevent another lost decade for the majority of Americans.

In the past and again now, some Americans as well as the “New World Order” promoters, thought the U.S. was finished as a nation. However, many of us still believe the American spirit is alive and well and that, as in the past when faced with the worst of times, Americans tried harder to make the best of them. The prevailing attitude has always been: YES, WE CAN! It certainly wasn’t: We are helpless victims of .....

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D. HOPING FOR MORE EXPORTS With the U.S. job markets in the doldrums and consumer spending slowing down, one prospect being touted to increase economic growth is to increase exports. The problem with this, however, in addition to the fact the U.S. no longer produces enough that others would want to buy, is that global growth in goods trading has ground to a halt over the summer, and seems poised to start contracting again for the first time since it went into freefall during the financial crisis in 2008-2009.

Another crucial fly in the ointment with regard to exports is: Where will increased global demand come from? If it is at one’s neighbors’ expense, it is called a trade war, which history has shown no one can win.

E. THE STOCK & COMMODITIES MARKETS The U.S. and other stock markets are still in the early stages of a decades-long Secular Bear Market and that historically unprecedented stock overvaluations have just started to decline back to, or even go well below, the long-term norm. Historical Charts show that, during the past Secular Bear Markets of the 1930s and early 1980s, the “Real” (inflation-adjusted) S&P 500 Index dropped to -66% & -54% respectively below the long-term norm. Thus, it makes no sense to hold onto stocks or Equity Funds in these times.

In addition, the one thing certain about the sovereign debt crisis is that some are going to take huge losses. As investors, the most important thing we can do is to make sure we aren’t the parties taking that loss.

As spelled out in an earlier article, commodities have again attracted far too much investment money after the huge price plunge in 2008. In fact, commodity prices surged to double in value from 2009 until recently.

The reality is that actual commodity consumption should track global economic growth. And, now that global economic activity seems to be dying on the vine, investors are being warned again that the decline in commodity prices should continue to roll downhill fast.

In these unique and very perilous financial times, my guidance to investors continues to be that they remain focused on capital preservation for at least another decade. In this regard, the advice put into two very succinct statements by the respected market analyst, Louise Yamada, is well worth repeating: (a) It was not just the Great Crash in 1929 that wiped out many stockholders; it was also the wrenching declines for many years thereafter that did in the “bottom-pickers”. (b) “There are two kinds of losses; a loss of capital and a loss of opportunity. However, there will always be another opportunity if we protect capital now.”

Simple wisdom, but few investors seem to heed it.

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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November- December 2011

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Holidays of Costa Rica ARCR will be closed from December 24th through January 2nd

December 25th (ARCR closed) Christmas Day January 1st (ARCR closed) New Years Day ******************** A Touch of Wisdom “Silence is the hardest argument to refute.�

Unknown “Sweet are the slumbers of a virtuous man.�

Joseph Addison (1672-1719) “To speak ill of others is a dishonest way of praising ourselves.�

Will Durant ******************** The Golden Years...

Two elderly gentlemen from a retirement center were sitting on a bench under a tree when one turns to the other and says: “Slim, I’m 83 years old now and I’m just full of aches and pains. I know you’re about my age. How do you feel?�

Slim turns to the other and says, “Well, I feel just like a newborn baby.�

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“Really!? Like a newborn baby!?� exclaimed his friend.

Slim turns back again, and says: “Yep. I got no hair, have no teeth left, and I think I just wet my pants.�

November- December 2011

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