El Residente 2012_07 by ARCR Administration

El Residente A Publica on of ARCR Administracion S.A.

July - August 2012

July/August 2012

ARCR Administracion S.A. Apdo. 1191-1007 Centro Colon San JosĂŠ, Costa Rica 1 (www.arcr.net)

Contents: President’s Message................. 3 The New Currency.................... 4 Connec on WCCR..................... 6 - Martha Rollins

Club Corner............................... 8 ARCR Update........................... 10 Wild Side of Costa Rica............ 12 - Ryan Piercy

A Day in the Life....................... 14 - Allen Dickenson

Legal Update, Consumers........ 18 - Allan Garro N.

Learning the Language............ 20 - Chris Howard

Dollars & Sense........................ 22 - Alan Weeks

Business Directory................... 26

This magazine has been published every two months since 1995 as the oﬃcial communica ons media of the ARCR. Our organiza on provides service to thousands of foreigners who have chosen Costa Rica to reside for short periods or for permanent residence.

Editor’s Note Inside this issue we have a lot of new things to cover. So much so that we can’t really fit them all in. For example immigra on has many new details that have finally been published, most of which make it easier on foreigners, but some will also put up new roadblocks. Speaking of roadblocks, Allen Dickenson brings us insight into the ins and outs of riding the bus. With no real bus schedules to work from, it makes it highly difficult for newcomers to get around on this very reasonably priced transporta on system. Which bus stop, which color bus? Hopefully Allen has some good pointers to help you find the right seat. And while we’re on the subject of seats, if a bus seat is not up your alley, how about a work of art? Chairs painted by top ar sts are being brought to the auc on block by the Womens Club of Costa Rica. Funds aquired will be used for their various charity works around the country. And what be er way to help out those in need than by si ng on your duff? Please feel free to email comments to us at info@arcr.net. Ryan Piercy Contact Informa on: Published by: Email:

ARCR Administra on info@arcr.net www.arcr.net Ed tor in Chief: Ryan Piercy Adver sing, Publicity: Cindy Solano Oﬃce Hours:

Monday- Friday, 9 am to 5 pm CRC me GMT-6

Address:

#101 Casa Canada, Av 4 Calle 40 San José, Costa Rica Tel: 506-2233-8068 Fax: 506-2255-0051

Mailing Address:

P.O. Box 1191-1007 Centro Colon San José, Costa Rica

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 applica on, immigra on, business and financial management, real estate purchases and rentals, property management, insurance, pet importa on and much more. If you wish to place an ad in El Residente, please contact the ARCR main office. Goods & services offered are paid adver sements. Neither ARCR Administracion nor El Residente research the companies and take no responsibility for the quality of such goods and services.

El Residente

President’s Message by Mel Goldberg Funerals & Holidays I recently took a trip home to the U.S. to visit family and on the way back to Costa Rica, at the Tampa airport, I had one of the airline cket counter supervisors helping me with the computerized check in. A er scanning my passport, I was asked where my return cket to the USA was. I explained I didn’t have one as I am a resident of Costa Rica. The supervisor then asked for my cedula. That was scanned also, but I was again asked to provide a return cket. A second supervisor was called who told the first to just input a date. I selected one two months later; it was entered, and the rest of the check-in process was smoothly completed. This chain of events wasn’t the airlines fault; Costa Rican law requires that everyone entering the country has a departure trip booked out of the country within the visa me limits. The airlines enforce that rule because if they deliver someone to Costa Rica, and Costa Rican Immigra on refuses them entry, the airline is responsible for the costs of taking that person back out of the country. This same requirement also arises at the border entries. Immigra on officials will request to see an outbound cket before stamping a visa into the passport. There have been many reports of such occurrences happening (both by airline travelers and at the border crossings) and persons have been required to purchase a return cket before being allowed to enter. To avoid this hassle, some people purchase a low-cost, open-ended (departure date unspecified) bus cket from San Jose to Panama or Nicaragua from one of the major bus companies, which they carry with them in the event someone asks. These ckets are generally good

for up to one year and, if the cket is not used, it can be renewed for a small fee. Many persons report that this ploy has “passed the airline test” without problem. It also works at other border crossing points. Once, riding an elevator, I was advised to not touch the floor selec on bu on with my finger p. The reason given was that many persons with dirty fingers have touched the bu ons before me and to avoid infec on I should use a knuckle. This may be valuable advice, especially in hospitals and medical office buildings. I can’t a est to the truth of some counsel being passed around the street; that there are thieves riding around with garage door opener code scanners trying to find one that will work so some random home’s garage door will open and they can enter the home to rob it. If you have one of these devices and are concerned about this, there’s a way to foil the ladrones; simply put physical locks on both sides of the door that allows it to only be opened a few inches. I suspect, however, that this well meaning “advice” is not correct – it smacks of being an urban legend. Certainly, installing such locks negates the reason (to avoid ge ng out of the car to unlock the door before entering) for an automa c garage door opener. Hospital Metropolitano now has a new contact person serving those veterans who are eligible for Tricare, Champus VA, or the Foreign Medical Program. Other veterans will get a discount on all services. The new contact is Ofelia Ramirez, who can be reached at 87543958 or 2521-6565 Ext. 2243, or she can be emailed at: ofelia.ramirex@hospitalmetropolitano.co.cr. Also, I have been asked to pass on to those interested in a ending services for Jewish High Holy Days, Rosh Hashana (September 17 - 18) and Yom Kipper (September 26), that they are invited to a end the services at the Congrega on B’nei Israel Synagogue. For more informa on on mes or direc ons, you can call them at 2231-5243 or email them at: congbeni@racsa.co.cr

Cover: Three-toed sloth (Bradypus variegatus) The new Ten Thousand colon note will portray the Three-toed sloth, or more speciﬁcally the Brown-throated species, which is the variety found in Costa Rica. The genus is derived from the Greek brados, meaning “slowness”, and podus meaning “foot.” In Costa Rica they are common on both Paciﬁc and Caribbean slopes, and some mes even up to an eleva on of 2400 meters. They are naturally found in lowland forest, both prisi ne and disturbed.

July - August 2012

Take Note of the New Currency 10000 Colones We are now well into 2012 and, though it was expected to be released by the ﬁrst semester, the new version of the 10,000 Colon note is s ll awai ng prin ng. This is likely due to the s ll acceptable condi on of the older notes. Although we know what it will look like, it appears we will have to wait a li le longer in order to appreciate the new bill to its full extent. On its colorful face the new currency will feature the image of José Figueres Ferrer who was born September 25, 1906, in San Ramón in Alajuela province. Figueres was the eldest of the four children of a Catalan doctor and his wife, a teacher, who had recently immigrated from Catalonia to San Ramón in west-central Costa Rica. The loca ons are signiﬁcant, according to his biographer, because his parents came from a world of wide ambi on that most Costa Ricans envied, and was born in a na on that put a high value on his impeccable Spanish background.

This man of vision and innova on studied in the United States and upon returning to Costa Rica, established his farm “La Lucha sin Fin” (the struggle without an end), where he grew sisal and coﬀee crops. Figueres became a successful coﬀee grower and rope manufacturer, employing more than one thousand sharecroppers and factory laborers. Describing himself as a “farmersocialist”, he built housing and provided medical care and recrea on for his workers and established a community vegetable farm and a dairy with free milk for workers’ children. Fate, however, had prepared another des ny for this lover of the campo turned entrepreneur. For him, El Residente

Characteris cs of Costa Rican Ten Mil Bill: Size: 146 x 67 mm Substrate: 100% co on fiber paper Predominant Color: Green Mo f: Aboli on of the Army Personage: José Figueres Ferrer (1906 – 1990) Ecosystem: Rainforest Featured Species: Three-toed sloth Orchid Mushroom cup democracy was being tarnished and civil liber es no longer existed. Because he disagreed with the direc on taken by Costa Rica, he decided to raise his voice and, in 1942, read a speech over the radio where he expressed his disagreement with the government. As a result he was arrested and subsequently deported to Mexico. When Figueres returned to Costa Rica in 1944, he established the Democra c Party, which a year later transformed into the Social Democra c Party. The party was intended to be a counterweight to the ruling Na onal Republican Party (PRN) led by former President Calderón and his successor Teodoro Picado. The highly controversial Calderón had angered Costa Rican elites, enac ng a large social security re rement program and implemen ng na onal healthcare. He also par cipated in considerable corrup on, providing a rallying cry for Figueres and the Social Democra c Party. In 1948, former President Calderón and supporters invalidated the presiden al elec ons, declaring them to be invalid, and the ul mate winner Don O lio Ulate Blanco. In March–April 1948, protests over the elec on results mushroomed into armed conflict, then into revolu on. Figueres’ forces defeated Communist-led guerrillas and the Costa Rican Army, which had joined forces with President Picado. A er just over two months of conflict, Government forces laid down their weapons and Figueres entered San Jose hailed as a hero. A er the civil war Figueres became President at the head of a provisional junta known as the “Junta Fundadora” (Founding Council) which held power for eighteen months. This Board is the founda on of the Costa Rica we know today, and its decrees strengthened democracy, achieving social conquests of the utmost importance and, in a superb example to the world, decreed the dissolu on of the army. On November 7, 1949, a new Cons tu on, which s ll governs the country today, came into being. The 4

following day the Board handed over power to Don O lio Ulate. On October 12, 1951, Figueres Ferrer founded the Na onal Libera on Party, the party that led him to the presidency twice, from 1953-1958, and 1970-1974. The achievements of his government are many, including: • • • • • • • • • • • •

Crea on of the Ins tuto Costarricense de Electricidad (ICE). Na onaliza on of the bank Crea on of INVU Crea on of the Ins tuto Costarricense de Turismo (ICT) Crea on of the Ins tuto Mixto de Ayuda Social Crea on of the Dirección General de Adaptación Social Crea on of the Ins tuto Tecnológico de Costa Rica Crea on of the Ministerio de Cultura, Juventud y Deportes Na onaliza on of the Ferrocarril al Atlán co Crea on of the Orquesta Sinfónica Nacional Crea on of the Universidad Nacional Crea on of the Comisión Nacional de Asuntos Indígenas

July - August 2012

• • • •

Decree of the Código de Familia Na onaliza on of RECOPE Universaliza on of the Seguro Social Transfer of hospitals to the Caja Costarricense de Seguro Social.

Modern Costa Rica carries Figueres Ferres’ indelible mark. His struggles and commitments to these causes made him the most important of all the public men and rulers of the country and he was recognized as The Man of the Twen eth Century in Costa Rica. The leader of the Second Republic died on June 8, 1990, and was declared Meritorious of the Homeland on November 12 that same year. Brief wri en by: Osvaldo Valerín Ramírez.

Connec on, WCCR by Martha Rollins Chairs of Art, for Chair-ity

the environment. Chairs vary from doll size to sizes appropriate for children and adults. Some chairs are sitable and some are simply works of art.

Most of us have recently seen a fantas c parade of cows, coke bo les and then doves in the streets and parks of downtown San José, illustra ng the vibrant crea vity of Costa Rica. September 1 at the Museo de los Niños we will have the special opportunity, thanks to the Women’s Club of Costa Rice (WCCR), to purchase a piece of that crea vity for our own homes. WCCR will be featuring a Sensa onal Chair Auc on as the focus of their annual Night at the Museum fund-raiser star ng at 6:00 PM at the museum. Seventy chairs, transformed into works of art by ﬁ yﬁve ar sts, will be on display to be taken home by the highest bidders. Almost 50% of the par cipa ng ar sts are na ve Costa Ricans. According to WCCR President Roslyn Beswick, “It is wonderful to see how the Costa Rican and ex-pat communi es have joined with WCCR in one of the most exci ng fund-raising projects we’ve had in many years!”

Most of the chairs and stools ﬁt comfortably in a private home. One ecological statement, however, called Tortugas o Tortura? is too large to ﬁt through a normal door and is most suitable for the lobby of one of Costa Rica’s large well-known “green” hotels. The FrenchCanadian ar st who goes by her middle name, Vivian, explains that according to legend a turtle carries the world on its back. The turtle is an endangered species, so it represents this element of our global situa on. American Joan Hall’s exo c chair Masaai Dreams is made from a teak chair donated by Muebleria La Rueda in Sarchi and features an authen c Masaai necklace and earrings. A stool donated from a builder’s site was transformed by Costa Rican ar st Magda Cordoba into a black and white beauty called Game of Chairs. The chair auc on is the brainchild of Canadian ex-pat, glass ar st and WCCR member Joan Dewar. She was inspired by a successful chair-ity fund raiser held on Hornby Island, Bri sh Columbia in 2011.

All ar sts were given free rein to express themselves in their choice of theme and media. From acrylic paint and fabrics, to jewelry, paper mache, concrete, and glass mosaics, the ar s c fusion is endless! Crea ve inspira on varies from ﬂora, fauna, and exo ca to El Residente

Here in Costa Rica, some ar sts supplied their own chairs while others were solicited from the public. Bill and Sherry Heinl donated four chairs and converted two into chairs of art. Bill is a re red upholsterer from Oregon, now living in Heredia. He heard about the project and agreed to restore, sand and prime twentyeight chairs for use by other ar sts...an awesome task accomplished within one short month, allowing fellow ar sts plenty of me for their crea vity to bloom! Bill’s hard work paid oﬀ with a li le bit of fun. On one of 6

• Cariari Golf and Country Club, August 17-26 • Plaza Mayor, Rohrmoher, August 18/19 • Indoor Club, Curridibat, August 25/26 La Republica, Libros Para Todos/Grupo Nación, the Sleep Inn and Barry Schwartz/Do the Right Thing Founda on are all strong supporters of WCCR’s fund-raiser for WCCR’s scholarship and library programs. If you ﬁnd yourself at the auc on September 1 and someone out-bids you for your favorite chair… or you simply decide that you cannot possibly choose only one, never fear. The Women’s Club has created a 2013 calendar featuring all of the chairs along with scenes of Costa Rica. The calendar makes a perfect holiday gi and will be available from members from September 1 onward.

those windy a ernoons in March, ar sts were invited to Centro Cultural in La Sabana for tea and cookies. Chairs were displayed on the lawn for the ar sts to mill about and take their me, le ng crea ve thoughts ﬂow, as they selected their favorite to take home and begin to work.

Plan to a end the Women’s Club of Costa Rica’s Night at the Museum celebra ng educa on and art, featuring silent and live auc ons, chairs of art, your favorite hotel, dining & travel items, music, entertainment, and bocas and wine compliments of a dozen popular restaurants. Tickets are 15,000 colones. Telephone 8916-9525, 22680975 (S) or www.wccr.org.

WCCR con nues contact between the chair donor and the ar st to maintain interest in the eclec c before and a er collec on of chairs of art! I think I personally would find it difficult not to bid on my own transformed chair of art! A project of this scope requires a great deal of hard work on the part of many people and organiza ons, not only within the Women’s Club membership but the ar s c community. The interna onal moving company Mudanzas Mundiales, is a major sponsor of the event. They have offered their exper se in packing and storing the chairs, ensuring their safe delivery to preview loca ons and the Museo de los Niños. As part of the advance publicity and to allow poten al bidders an advance peek at the chairs of art, they will be displayed to the public at:

Put Saturday, September 1, 6 – 10 pm at the Children’s Museum on your calendar! Bid on a chair of art. Buy a 2013 calendar!

• Canada Day, Zamora Estates, Santa Ana, July 1 • American Independence Day, July 4, Cerviceria, Belen • Costa Rica Country Club, Escazu August 17-26 July - August 2012

Alcoholics Anonymous Groups meet daily throughout the country; mes and places change frequently. Call for up-to-date informa on. San José 2222-1880 (Anchor club, also serves Narco cs 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) 2654- 4902, Manuel Antonio (Jennifer) 2777-1548, Jacó (Nancy) 2637-8824, Zoo Group Escazu 2293-4322. Grecia (Jay) 2494-0578. Southern Zone, mee ngs in English & Spanish, 8634-9241. Al-Anon Mee ngs Al-Anon Family Group is for all family and friends of Alcoholics. Mee ngs are at the Interna onal Bap st Church, 2nd floor, Saturday morning 10:30, located on the pista toward Santa Ana between the Mul plaza and Guachepelin exits. For informa on in English, please call Ken 2288-0317 and Rosemary 8993-1762; For Spanish please call Chris ne 8840-4658. Also in Grecia on Tuesdays at noon (English), contact Cheryl at 2444-1515. American Legion Post 10- Escazu 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 informa on and map, go to the website at amlegioncr10.com/met_loc.html, or call John Moran at 2232-1680.

For more informa on Call the LTG Box Oﬃce 8858-1446 or www.li letheatregroup.org Marine Corps League Meets at 11am the 2nd Saturday of the month, Int’l Bap st 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 mee ng will be an interest fair. Contact: 2416-1111 costaricaporo@yahoo.com or h p://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. Two months Free Trial for newcomers. For informa on call Chuck Jennings. Phone 2266-0123 www.pcclub.net Republican’s Abroad Republicans Abroad meets the third Monday of the month at 11:00 am at Club Cubano in Guachipelin. Contact Dick Macauley at 24392897 or dickmacauley@yahoo.com Radio control Sailing Club Meets at Sabana Park Lake. For informa on contact Walter Bibb. Wwbbsurf40@yahoo.com

American Legion Post 12- Golﬁto Mee ngs 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 27752809.

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 educa on. For more informa on on upcoming events please contact us. Phone 2279-8927, 2257-2223

American Legion Post 16- Goicochea Mee ngs are the second Wednesday of the month in the Hotel of the Hospital Clinica Catolica. Lunch at 11:30 and the mee ngs at 12: 30 Contact Jim Young at 2524-1265.

Women’s Club of Costa Rica In 2010 The Women’s Club celebrated 70 years of philanthropy in Costa Rica. Current programs focus on educa on, primarily through scholarships and development of school libraries for children. It is one of the oldest, con nuously opera ng service organiza ons in Costa Rica. WCCR membership numbers 250 English-speaking women, represen ng 25 countries of the world, drawn together by the mo o: Friendship through Service. WCCR monthly mee ngs 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 informa on can be found at www.wccr.org

Bird Watching Club The Birding Club of Costa Rica sponsors monthly trips to observe local and migrant birds in various areas of the country. For more informa on contact us at costaricabirding@hotmail.com Canadian Club The Canadian Club of Costa Rica welcomes everyone to join us for our monthly luncheons, and at our special annual events, like our Canada Day Celebra on, no passport required. For informa on visit our website: www.canadianclubcr.com Democrats Abroad Democrats Abroad meets on the last Saturday of every month at theAurola 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! Li le Theatre Group LTG is the oldest con nuously running English-language theatre in Central or South America. The group currently puts on a minimum of four produc ons a year oﬀering a choice of modern, classic, serious, and farcical plays. The group’s monthly social mee ngs 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.

El Residente

Women’s Interna onal 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 ac vity partners, and professional networking. www.YoungExpatsOfCostaRica.org Veterans of Foreign Wars: Post 11207 Mee ngs 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

July - August 2012

ARCR Update The New Residency Rules A er a wait of just over two years, Migracion has finally published the new rules and regula ons for the residency law passed in 2010. The new rules came into effect on the official publica on date, May 17th 2012. Surprisingly, a er all the appearance of making things more difficult under the new law, the rules have now flipped the other way and have made residency more a ainable for many who did not previously qualify. For example, one of the new ways is for Investors who are registered owners of assets in Costa Rica, with a value greater than US$200,000, to use those to apply. Now, not only has this been ra fied in the rules, it has been clarified and amplified so that a person can meet this requirement using the combined value of their registered assets. That means that registered vehicles can be included, as can be mul ple land/home holdings, as types of property which can be used in achieving the necessary US$200,000 total, so as long as the holdings used are registered in the applicant’s name in the Na onal Archives.

self-employed in their ﬁeld. And all types now conﬁrm the ability to bring dependents, even those coming here to study. Fallout from the new Regs Though it may be easier for many to qualify for residency now, there will be some stricter rules for those who have not yet applied. As of July 1st banks will be required to see that clients show their DIMEX (cedula) in order to maintain their accounts open. According to the informa on published, new clients will have one year from the start of their banking rela onship in which to obtain the document.

In another area, the rules have reduced the ﬁnancial deposit requirements for Ren stas from ﬁve years to just two, which lowers the deposit requirement back down to US$60,000 as it was previously (renewable at two years).

So, what does that mean for those who already had their accounts for a year or more? Each Ins tu on is likely to take its own course of ac on, perhaps freezing, or even closing out accounts. They may go easier on those who can prove the Residency is actually in process.

And if these new op ons are not enough, several dispensa ons are also available if you meet any of the following: You have residency, but it expired in 2003 or later. You are the parent of a minor child who has residency or ci zenship. You are over 65 years old with more than 5 years in the country. You entered as a minor over 5 years ago, and your parent(s) are residents. You entered as a minor, are 18- 25 years old, with over 5 years in the country. You are over 65 years old and have a disability. For a domes c employee with no status.

Furthermore, the one year granted may not be adopted by all banks, some of which also operate under in-house rules. Some banks may ﬁnd it easier to simply deny accounts to any non-resident un l they have acquired their Dimex.

If you or someone you know was having difficulty qualifying before, now is the me for them to reevaluate the op ons and see if one fits their need. One more thing, work permits seem to have almost disappeared, but in their place comes a number of different statuses designed to let workers come in under a variety of op ons, including trained professionals, those hired by companies, and even those looking to be El Residente

ARCR Discount Program If you are looking for savings, don’t forget to check out the ARCR members’ discount program. Recently updated with fi y hotels, more restaurants, and many other offers, it can now all be found in digital format on the website at h p://discounts.arcrmembers.net. This is another part of our objec ve to become greener by having more content available digitally. Our new site is easier to search and sort the various discount offers in each area, and we will con nue to add to the exi ng list throughout the year. Those members who register with the site can receive email no fica on of new discount providers when included. Also, the new printed, pocket discount manual will be available in the ARCR office by the me you read this. Pick one up and patronize the adver sers who are suppor ng this great ARCR program. 10

July - August 2012

Wild Side LXVIII Ryan Piercy Basalisks, the Jesus Christ Lizards Lizards are something you are apt to see wherever you go in Costa Rica. Iguanas are especially commonplace, but for now I am going to address another species: the Basalisk. With a name like that, it brings to mind Greek mythology and fantas cal creatures. But the genus basaliscus is a real species with its own seemingly mythological ability: it can walk on water.

The adult males have a well-developed head crest and spiny, ﬁnlike dorsal crests. When encountered they will stare back at you with red eyes, like a small predator, remaining absolutely s ll un l suddenly running away helter skelter. The females and young don’t have large crests, but their bright coloring (the young have only green heads) s ll helps them to stand out. Larger males may reach a length of 92 cm, including their tails (about 75% of total length), and may be bright to a bluish-green with spots in white, yellow, or pale blue or green, down their sides. The third species, the Striped basilisk (Basiliscus vi atus), can be found from the northern center to the southeast coast of the country. The adult males range up to 59 cm total length, are usually a brown to olive color, and have two pairs of stripes along the back of the head and along the body. Their eyes have a yellow iris. They have a much shorter ﬁn than their cousins, which makes them easy to tell apart. While the other varia ons will primarily be found in wet forest with streams or in coconut groves and areas bordering sandy beaches, this lizard is more terrestrial than the others and may be found in more open areas and further from water.

There are four species of this genus endemic to Mexico, Central America, and northern South America, and three have been conﬁrmed in Costa Rica: the Common, the Plumed, and the Striped (or Brown) basilisk. The males of these three types are quite easy to dis nguish. They develop impressive head crests to which the name, derived from the Greek basilískos meaning “li le king”, is a ributed. The species is omnivorous, feeding on insects, ﬂowers, and small vertebrates, and are usually found near rivers and bodies of water. The largest, the Common basilisk (Basiliscus basiliscu), is the type most frequently seen in Costa Rica. It is o en referred to as the Jesus Christ lizard. Locally, they inhabit the Western lowlands up to about 1,200 meters. Large males may weigh up to 600 grams and be up to 90 cen meters in length, with the tail making up 70 to 75% of their total weight. They have a single, rounded head crest directed to the back, which is barely suggested in younger specimens. Overall color in adults is brown, olive, or bronze scales with darker cross bands, and lighter stripes along the upper lips. Some may have similarly colored lateral bands. Eyes have a brownish iris at all ages.

Basilisks are diurnal creatures’ (sleeping at night, foraging in the day) which makes them much easier to encounter and observe than many other types of animals in the country. If you do meet them they are most interes ng when on or near the water. A defense mechanism against its many predators, including large rep les and birds, is its amazing ability to run across large stretches of water before sinking and swimming. When startled they can run at 1.5 meters/second for as far as 4.5 meters (or even more than 10 meters if they are smaller and stronger juveniles.) There is no need to be afraid of them; although they may be able to run across water, their staring gaze is not able to turn you into stone as some legends suggest.

In the southwest, or central to eastern Costa Rica, you may come across the dragon-like Plumed basilisk, Basiliscus plumifrons. Their striking green color makes them easy to instantly dis nguish from any other animal. El Residente

July - August 2012

A Day in the Life by Allen Dickenson

bus’s front window need to be scru nized to assure you get the one you want.

Take the Bus, Leave the Music to Us Driving here can be a physically, as well as emo onally, draining ac vity. Luckily, for those who ﬁnd the driving a challenge greater than they are willing to tackle, Costa Rica has an extensive and cheap bus system that can be a sa sfactory alterna ve to owning a car – a system so wide-ranging that it can take anyone to within walking distance of where they desire to go, just about anywhere in the country.

A er loca ng the depot and (possibly) iden fying the correct bus, even if you don’t know exactly where it goes and you are going to visit someplace you have never heard of, so what? Adventure awaits. But what about the departure schedule? Nominally there are schedules, and there have been comprehensive books of them printed. But like many things Tico, the bus schedules, par cularly for local routes, are o en flexible and the published informa on regarding mes, stops, or routes are not always as accurate today as they might have been yesterday. So the explorer must remain flexible too. But don’t worry, departures are usually very frequent and a long wait isn’t likely. Now, regarding the different lines’ bus colors, if you are outside of the city ge ng to San Jose is easy – almost every color bus goes there. It is ge ng back where paying a en on to color schemes becomes important.

However, taking the bus can also be a daun ng experience for new arrivals. For rou ne, local transporta on, one quickly learns that each bus line paints their buses in unique pa erns and different color combina ons. And, although different lines may share some of the same bus stops, they have different routes and end points. Once you know what your line’s colors are, however, it’s easy to select the right one. But you go a pay a en on. More later. If one cares to do some wider explora on to outlying des na ons, then the par cular terminal for the appropriate bus has to be located, and that can be in mida ng because they are sca ered all over the city. Fortunately, ARCR provides one of the finest maps of Costa Rica one can find. And it’s free to members! On one side is the complete country, on the other side is a detailed map of downtown San Jose. The city side includes the loca on of the bus depots and tells which sta ons’ buses travel to which general loca ons, as well as other useful informa on. NOTE: Each terminal likely serves as a departure point for several disparate loca ons, so once you are at the sta on, the signs in the El Residente

A case in point: Recently I needed to take a bus from San Jose to Santa Ana, where I live. The line I wanted paints its buses with three colors of blue. There is another line that also trims their white buses with two of the same colors of blue. The second line even has some routes that go through Santa Ana, but others go to diﬀerent,

outlying loca ons and never get near my desired stop. So, there I was, standing at the bus parada about two blocks from the Casa Canada oﬃce, wai ng for my blue bus, when it started to rain. I was red and concerned about the items I was carrying ge ng wet, so when a bus with a blue front pulled up, I got on board. You can 14

wandered around a while, there would be another bus coming by before long. One of my adventures was on a trip to Cartago. I deliberately wanted to go there, so using my ARCR map, I found the depot, paid, and got on before the bus ﬁlled. A li le later the young man who took my fare got on too – but to my surprise he wasn’t the driver. As soon as we were underway he reached in a bag he had stored in an overhead bin, pulled out a double pan ﬂute, and began playing. Hmm, I thought, maybe this is the Tico answer to satellite radio.

guess the outcome – I ended up at the end of the line, about five miles from Santa Ana. And there was no connec ng bus from there. I had a choice: I could stay onboard and ride back to where the two lines intersect each other, or get off and forge on some different way. Whether you are exploring the country or, like me, just trying to get home, these kinds of situa ons can be approached in one of two ways; as a disaster or as an opportunity for a mini-adventure. In this case I chose the la er, disembarked and, since it was a ernoon and I was hungry, quickly found a nearby soda to get something to eat. No, I’m not going to tell you that I had the finest Chateaubriand I’ve ever tasted for only 2,000 colones; the food was typically bland and nondescript. What I did encounter, however, was a group of friendly, curious Ticos who had lots of ques ons about my impressions of their country, the USA, and (of all things) American poli cs. And, of course, at some point they all asked how this Gringo ended up in a neighborhood where they rarely saw Norte Americanos? (Does the word idiota cover it?)

The fellow’s skills were good and I was engrossed. I watched as he put on a show, paying special a en on to the pre y girls as if he was playing only for them, then going on to the next person. I expected him to solicit ps but about a quarter-way to Cartago I got another surprise; he again reached into his bag and pulled out a hand full of CDs and began going up and down the aisle selling them! When he got close I could see it was his picture on them – it was his music he was peddling. I s ll have that CD somewhere. By the me we neared the downtown area of Cartago the bus was almost empty. We pulled up to a stop and everyone but me got oﬀ. I stayed in my seat, intending to ride all the way to the terminal downtown, but the driver had other ideas and ordered me oﬀ – in the middle of a residen al neighborhood. I reluctantly

This was not my first experience going to des na ons I had never before visited. When I first moved to Costa Rica and was staying in San Jose, I made it a habit to occasionally pick a bus at random, get on, and see where I ended up. Some mes I went to a terminal, but more o en I just picked a bus parked along a street to pick up riders. In any case, I had no fear of ge ng lost because I knew that sooner or later they all ended up back in San Jose. And, even if I got off somewhere and July - August 2012

So, if you decide to be venturesome and ride strange buses, here are a couple of ps I have learned: If you are like me, over six-feet tall, don’t expect to be luxuriously comfortable. Most local buses have the seats placed close together – for me some are so close that I must sit as upright as possible to get my knees in. There are mes I have been wedged in so ghtly that if the bus were to ﬂip upside down I couldn’t possibly fall out of my seat. Another sugges on is to try to have change, or at least nothing larger than a two mil bill, for the fare; the drivers don’t like changing large bills. And last, take a camera and talk to people – most are very nice and who knows, you may never pass that way again.

exited, asking him how to get downtown. He gave me some vague instruc ons, waving an impa ent hand in a general direc on. I started walking and, sure enough, about twenty minutes later I was in the heart of downtown, having seen parts of Cartago I would have missed otherwise. On another of my random trips my intended des na on was the Heredia city center. The bus took another route, skir ng downtown, and ended up in Alajuela. That was OK; I hadn’t been there before either. The result of another one of my indiscriminate bus choices was that I rode for well over an hour, far out into the countryside, before the bus reached the end of the line in a very small town somewhere in the northern mountains. A er a ﬁ een minute wait we turned around and headed back to San Jose. During the down me I had a nice conversa on with the driver and a couple of passengers.

If you are looking to explore this beau ful land, the buses here are a safe, inexpensive, and interes ng way to see the countryside, meet people, and see things you might never otherwise encounter. And, don’t worry, you’ll get back okay (but you may need an ARCR map to ﬁnd your way back from the terminal.) Allen Dickinson is a member of ARCR. A er serving 23 years in the US Navy he se led in Pensacola, Florida, where he resided for 24 years. In 2006 he re red from opera ng 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.

The point I am trying to make is that every trip, even the miscue trying to go back to Santa Ana, was fun, and on each I saw parts of Costa Rica I might never have seen otherwise. And maybe more importantly, I met some very nice people, all eager to help a wandering and semi-lost Gringo. El Residente

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Legal Update by Allan Garro N./ Lucrecia Navarro C.

abusive clauses in their rental agreements and purchase contracts.

Figh ng for Consumer Rights in Costa Rica For decades the rela ons between consumers and merchants in Costa Rica were fundamentally regulated by both the Code of Commerce and the Civil Code by applying generic commercial trade rules. It worked this way un l 1996 when Cons tu onal status was granted to the protec on of consumers’ rights by introducing an amendment to ar cle 46 of the Cons tu on, which basically says “All consumers have the right to the protec on of their health, environment, security and economic interests; to receive adequate and truthful informa on; to the freedom of choice, and equal treatment.” Said amendment was complemented by law number 7472, known as Consumer Protec on Law, which brought specific rules in order to protect the rights and interests of the consumers. The main principle it contains is the in dubio pro consumer meaning that in the case a conflict arises and the facts are not clear it is mandatory to rule in favor of the buyer. Ar cle 34 of this new law establishes a number of obliga ons for traders such as: provide accurate informa on, grant a minimum of thirty business days warranty, sell quality products and inform if any sold assets are brand new or refurbished. The law defines a merchant as “any physical or legal person, public or private, that in a regular basis offers, distributes, sells, leases, or offers products or services, even when this is not their main ac vity”. This defini on embraces both physical persons and corpora ons, and also includes wholesalers as well as public ins tu ons such as INS –insurance company–, ICE –telephone and electricity provider–, RACSA –internet service provider– and AyA –water company–, to put some examples. Now all merchants are required to adjust their prac ces in order to match the new rules or they will face severe fines and penal es. The law forbids any ac ons that can cause damage by crea ng confusion or offering misleading informa on about the real characteris cs of the service or product purchased. It is well known that many companies such as building contractors, car rental agencies, appliance/electronics stores, me shared hotels, real estate developers, among others, have El Residente

Another interes ng point in rela on to this new law has to do with doorstep sales (a good example could be the purchase of products that are adver sed on TV) where a retrac on right is granted to consumers. This means that any buyer who has a last minute change of mind can legally return any purchased product within 8 days from the delivery date, as long as the product has not been used, and the purchase money will be reimbursed. Nowadays any affected consumers have the right to sue these dealers by means of the Consumer Protec on Law which offers the possibility to choose between two different ways to confront the same issue: - File a complaint in front of the Na onal Consumer Commission, a branch of the Ministry of Economy. In this case an administra ve procedure will start gran ng both par es the right to present all kinds of valid evidence and tes monies before a verbal hearing takes place. This Commission has the faculty to impose fines against any merchant and to order the repair, subs tu on or res tu on of the price paid for the specific ar cle or service. It is very important to take to considera on that under no circumstance might the Commission grant claims different from the ones stated above, such as: damages, legal costs, interests and similar. It is also impera ve to be aware that any complaint is required to be filed within two months because of the statute of the limita ons. - Start a civil lawsuit in Court by means of a summary process, where a larger number of pretensions can be filed, including but not limited to reimbursement of any purchase price, damage costs and interests. One of the advantages that this op on offers is a wider term before the possibility to do so lapses. Given that this civil lawsuit can be presented at the nearest Civil Court, this might be way to go for all of those Expats living outside the central Valley, in view of the fact that the Na onal Consumer Commission offices are to be found only in San José.

Here is an example in regards to consumer protec on rights: an Expat came to Costa Rica to spend his vaca on, the ﬁrst thing he did was rent a car to drive to the beach. On the road he made a stop, had a few beers and hit the road again, losing control of the vehicle and crashing it, damaging the front part of the car. Because he was drunk the Insurance Company declined any payment to repair the car. Later on he went to the car rental company, where he was told not to worry and that they would contact him to reach an agreement. The Expat went back home, forge ng he had signed a blank voucher when he ﬁrst rented the car. Next he no ced a charge for USD $12,000 appeared on his credit card balance. This person came back one more me for vaca on as well as to start a summary lawsuit in Court, where he was granted the right to recover all the money plus legal interest. In this case, and even though the customer was responsible for crashing the car, the Judge stated that the car rental company did not grant a Due Process or Defense Opportunity prior to charging the client’s card plus it was demonstrated that

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the total value of the car before the crash was less than USD $10,000. It is important for all consumers to obtain as much informa on as possible concerning any product or service that they might be interested in, to pay a en on to the small print on any contract before signing it and to always demand a warranty and a proof of payment from any seller, but if something goes wrong the law might be on their side. In the same way Merchants need to adjust their prac ces according to the Law as well as provide clear informa on to their customers in order to avoid any poten al con ngencies. ALLAN GARRO NAVARRO A orney at Law allan@garrolaw.com www.garrolaw.com Lucrecia Navarro is a graduate from the Law School at University of Costa Rica, currently doing Internship at Allan Garro’s oﬃce.

Learning the Language by Chris Howard Tico News Expressions Neither La Extra nor La Teja are examples of good journalism, but can serve as useful tools for learning Costa Rican slang. Both are the most read newspapers in Costa Rica. They are famous for their use of red ink in their headlines and sensa onalism. Why does one need to learn the local lingo? Because most of the Costa Ricans use it and you may be lost at mes without it. Here are the some of the words I found in both papers the other day: Agarrarse como mono en ventolero – literally means to grab hold like a monkey in the face of a strong wind. What it means in slang is to hold on ght to your money because you are ght-fisted or cheap. Bombazo – a loud noise produced by a car crash or a big news event like a scandal Cachetes – usually refers to someone’s cheeks but it can also refer to someone’s bu ock Colmillo – literally means fang but in this case it means to be shrewd or smart. Vivo is a synonym. Chuzo – any car that has been modified or fixed up. It can mean any object that is good quality like a state of the art computer Cacos – criminals Chepito – a nosey person or snoop Guatear – to rain or take a bath Echarle ojo – means to look at something Fiebre – a soccer (football) fana c Melones – literally means melons but is slang for the word “millions” Oijotos – agents from the O.I.J. inves ga ve unit Secre – short for secretary Silla caliente – the hot seat like the witness stand during a trial Tabo – jail. El tarro (the can) is also used Tucas – a woman’s legs Una mami- a good looking woman Volarle filazos – to stab someone Verse más jalado que un mecate campanario – to look haggared. Literally to look more frayed than the rope that is used to ring a church bell. Verse demacrado/a means the same thing Vivir con permiso del panteonero – to be living on borrowed me Vivir horas extras – also to be living on borrowed me Desampa – short for the town of Desamparados which is south of downtown San José Hacerse la barba – means to shave in Costa Rica. Afeitarse or rasurarse are the correct verbs to use. Jalarle las orejas – literally to pull someone’s ears but it can also mean to scold someone. Jupa – means head. Cabeza is the correct word. Jupón is a person with a big head or someone is stubborn. Los niños y los borrachos siempre dicen la verdad – Children and drunks always tell the truth. Menear, mover el esqueleto, quemar callos or pegarse una bailadita all mean to dance in Costa Rican slang. Bailar is the correct way to express this idea. Pasar a la vida seria and dar el sí mean to get married. We also say echarse la soga al cuello which means to hang oneself by ge ng married. Casarse is the correct verb for ge ng married. Pelear con el cepillo – to fight with your hairbrush which really means you need to comb your hair. Pelear con la navajilla (razor) means you need a shave. Pelear con la escoba means you need to sweep with a broom. Rodar cabezas – heads will roll which means people will get fired. Cortar el rabo also means to fire someone. Trocha – a road. This term has been in the news lately when referring the road being built along the border with Nicaragua.

Tiquismos (Costa Rican expressions) of the week: Ton co/a – word play which Costa Ricans use to mean a stupid co/a (Costa Rican). It is a combina on of tonto/a (stupid) and co/a (slang for Costa Rican).

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Dollars & $ense by Alan Weeks Burs ng Bubbles and the Myth of Wizards Much has been wri en about the Greek tragedy as well as about the economic “death spiral” that austerity is crea ng. To really appreciate what happens when debt-fueled false prosperity disappears, just look at Spain. The 4th largest economy in Europe was riding high during the boom years, but now the Spanish economy is collapsing with no end in sight. COLLAPSING SPANISH ECONOMY IS HEADING INTO A GREAT DEPRESSION (1) As reported in this ar cle, the Spanish banking system is a giant unregulated mess, which is on the verge of a massive implosion. But, only a er the Spanish economy minister warned last week (June 3rd) that the future of the Euro would be determined in the next few weeks and will depend on the stability of Spain and Italy, was German Chancellor Merkel finally forced to work out a deal with Spain to rescue its banks. The “face-saving” deal in a simple analogy is “to lend to Peter to lend to Paul”. For this reason, I remain skep cal that this will “fill the sinkhole” to avoid the implosion of the financial system, and think it is just “kicking the can down the road”, once again. Regardless, we need to be aware that the collapsing Spanish economy is heading into a great depression. Of the 22 signs of this collapse cited (1), a few of them illustrate well, the magnitude of this crisis in Spain. The unemployment rate is now higher than the U.S. unemployment rate was at any point during the Great Depression of the 1930’s, and is projected to increase a further 20%. Youth unemployment (under age 25) is now a whopping 52%. Spanish housing prices are now down 25% from the peak of the market, and are projected to eventually decline by around 60%. Of all the real estate assets held by Spanish banks, more than 50% of them are considered by the government to be “troubled”. Worldwide exposure to Spanish debt is es mated to be well over one trillion Euros. Spain is now going “down the road that Greece went down”. But Spain is just at the beginning of the downward spiral. And the pain in Spain will only get worse for the huge number of unemployed people. It has been stated that the chronic unemployment is tearing apart the social fabric of the na on and the millions of people affected could face a life me of distress. As one lady with children who had a job, a husband, and a home four years ago put it a er losing all three, “my self-esteem is a mess”. And, as another chronically unemployed 28 year old expressed it, “feeling useless is very depressing”. THE EU’s SYSTEMIC RISK

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As the EU’s systemic risk is reviewed, one should keep in mind that every leg of the Eurozone crisis has been marked by denial of the full scale of the problems. Denial, as you are aware, is not a river in Egypt. The European banking system is nearly 4 mes the size of the U.S. system, and, according to the IMF, European banks as a whole are leveraged at 26 to 1, which are at Lehman Bros. leverage levels. In addi on, the European Central Bank’s (ECB) balance sheet is now larger than Germany’s economy and is leveraged at over 36 to 1, with over a quarter of it stuffed with the debt of the PIIGS na ons (Portugal, Ireland, Italy, Greece & Spain). Another ominous sign of risk contagion is that bank runs, already in progress in the peripheral PIIGSs countries, are now spreading to France. However, what appears to be overlooked by investors, is that it is no longer about the peripheral na ons; it’s about the vulnerability of Germany. The country’s strength and its export of manufactured products, contributes over 40% of its GDP compared to about 13% in the U.S. But, the weakness is that Europe is about 60% of its market for exports. Austerity is forcing many European economies into recession or worse. In fact, the “flash” figures for May look horrible and provide a clear warning that the Eurozone GDP for the 2nd Quarter will almost certainly show a contrac on. This economic slowdown across Europe is already impac ng German exports as the manufacturing sector contracted at a far greater pace than was expected in May. And, German business sen ment also dropped. Furthermore, Germany’s industrial and export problems are likely to be compounded in future by the slowdown in emerging markets. Germany’s greatest vulnerability, however, is the financial exposure as it stands behind official ins tu ons, including the ECB and the Eurozone’s rescue fund. Germany is by far the largest creditor with total exposure exceeding 30% of its GDP. As the German economy con nues to be dragged down by the spreading European recession, the leaders could also face an electoral revolt, as in the rest of Europe. Thus, Germany may not, as widely assumed, offer a safe haven in the European debt crisis. It should also be realized that if Europe goes down, as many expect, it would have a bigger impact than anything we’ve experienced in our life mes. As one well-respected Chief Economist (2) just stated: “make no mistake, this crisis has legs”. The author (1) of the Collapsing Spanish Economy ended the ar cle with the following predic ons: “The nightmares that we see unfolding in Spain and Greece right now are just a preview of what is coming to most of the rest of the world. The next “wave” of this economic crisis will soon envelope the

rest of Europe, Japan, the United States, and the rest of the Americas. When it strikes, the pain will be immense. But it won’t be the end – it will only be the beginning. The global ﬁnancial system is star ng to crumble. You had be er be ready”. In the next sec on, it will be shown that China, the 2nd pillar of the global economy, is also crumbling. RISK OF A CHINA SHOCK There is no doubt that China is slowing – substan ally. However, investors appear to have remained calm, with most posi oned for Chinese economic growth to come close to the magic 8% number this year and beyond. Amongst the skep cs, one head of Asia strategy (3) says that even now, with the European and U.S. economies also slowing, the belief that “the Chinese [wizards] can con nue to pull the rabbit out of the hat indeﬁnitely” is s ll “largely consensus”. [As a cri cal aside on consensus forecasts, it should be noted that the leading U.S. economists’ consensus forecasts over the last 40 years, have never, not even once, forecast a U.S. recession or even a slowdown below 2% growth]. What has been well publicized in the past about China is that it has a huge property bubble; an unsound banking sector; and its state-owned enterprises are in horrible shape. In addi on, China’s over-reliance on investments, with no genuine economic feasibility, guarantee the current boom is unsustainable. Recent key measures from China have slumped to stagna on levels not seen since the 1990’s. Some of these include China’s money supply: The narrow M1 data for April was the weakest since modern records began. Real M1 deposits, a leading indicator of future economic growth – have been contrac ng since November. And, according to another Investment Manager (4), they are shrinking faster than at any me during the 2008-2009 crisis; and faster than Spain right now. Another Global Manager (5) stated: “There has been a blizzard of awful data that shows extreme weakness in the Chinese economy”. These include: Electricity output slumped in April and is up just 0.7% over last year. Housing sales slumped 25% in the 1st Quarter. Construc on fell 28% in April. This sector has been a major employer of the Chinese workforce. New loans fell 33% in April. Recently, the People’s Bank of China cut bank reserves for the 3rd me in 6 months. But, loan growth in the 1st and 2nd weeks in May was zero and there was a drop in deposits. With the economic slowdown in Europe, China’s largest customer, it is hardly surprising that it reported a rise only of 4.5% in exports from last year.

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However, the import numbers were far worse. Since China is supposed to be rebalancing its economy toward domes c consump on, imports are by far the more important indicator. The forecast was for growth of 10.9%, but imports grew a mere 0.3%. This seems to be the same old story of “pushing on a string”. Despite all these chilling facts, the author stated in a missive called “The Wizard of Oz,” that investors had put too much confidence in the ability of a group of Chinese na onal, U.S.educated, economists to manage the Chinese economy. He also stated that the U.S. money management community s ll is “up to its knees” in investments which play to “sucking on the bounteous teat” of uninterrupted growth in China. They all seem to want to believe that there is an “All-Knowing Oz” who can push a few bu ons in China’s economy and cause the 8+% growth that is needed to make it all work out. With expecta ons so high, equity and commodity markets will have a long way to fall if China’s recent widespread weaknesses persist or worsen, punishing the investors. The fact is that any sizeable decrease in commodity use by China would lead to sharp declines in: (a) The price of commodi es like Oil, Gold, Copper, and Co on. (b) The sovereign debt and currencies of commodity expor ng na ons: Australia, Brazil, Canada, & others. (c) Emerging market stocks and bonds. (d) The profits of “high quality” companies in the U.S. depending on China. Now, in a surprise announcement, Chinese interest rates were cut by ¼%. Does anyone really believe that a ¼ of 1% cut in interest rates to 6.31% will spark another borrowing surge by Chinese businesses and households? In conclusion, I agree with Mish (6) that “China bulls are in for a mul -year shock because rebalancing from an economy overly dependent on exports and massive infrastructure investments is going to be far more painful, and last longer than most seem to believe”. WHAT’S HAPPENING IN THE U.S. ECONOMY? The latest report is that the U.S. economy grew at an annualized rate of 1.88% in the 1st Quarter. That en re growth was accounted for by increases in consumer spending. This number is actually very poor for an economy that is supposed to be three years into a recovery. Furthermore, as anemic as this growth number is, it was boosted by an understatement of infla on. The official annualized CPI-U (real) infla on of all items, including food and energy, was running just over 2% higher during the Quarter. Therefore, if the real infla on number had been used, the headline growth would have been -0.13%. Other meaningful concerns that the increased consumer spending is not sustainable include the following: Per capita disposable real income con nued to shrink. Savings rates have plunged.

Student loans added almost 25% annualized to the total increase. Reﬁnancing of home mortgages and defaults added over 30% annualized to consumer disposal cash.

All these temporary, and thus unsustainable, sources added 2.8% in total to the GDP growth, that itself was prac cally zero. Therefore, un l there is signiﬁcant, sustainable jobs growth, we believe the U.S. economic slump will worsen signiﬁcantly. On the subject of jobs, it was noted in a recent ar cle that “there are far more jobless people in the United States than you might think, because so many are no longer being counted”. And, the most recent Gallop Poll survey showed an 18% underemployment rate. Therefore, the overwhelming priority of Policymakers needs to be on jobs, jobs, jobs! Unfortunately, there has been a demonstrated lack of understanding the seriousness and worsening of the jobs issue, and there has been no sign of leadership to date. Thus, the best we can hope for is that Policymakers will get out of the way of the private sector in the many new job-crea ng ac vi es.

used by experts. The ﬁnancial crisis in 2008 proved him to be very wrong, again. In 2009, he announced a recovery, but unemployment kept skyrocke ng. And, the FED seems clueless once again because if more quan ta ve easing (QE) is invoked, Joe Six-Pack will be hurt even more.

And yet even now, the Markets surge whenever there is another hint of QE or direct Asset purchasing; although past interven ons have proven to be increasingly less eﬀec ve. Therefore, instead of viewing the FED Chairman as a WIZARD of OZ because of the wonderful things he does, one might consider star ng to think of him as a PIED PIPER leading the naïve astray. PREPARING FOR ANOTHER LOST DECADE This is being advised (7) because “there appears to be a con nuing lack of comprehension by U.S. Policymakers of the seriousness of the credit/debt crisis, and unwillingness, even today, to acknowledge reality. What is even more scary, is that they con nue to demonstrate a complete lack of strategic vision.”

ECONOMIC MYTHS One of the most profound myths that con nues to exist is that ar ficially cheap and inflated money is good. Unfortunately, ar ficially cheap money leads to a misalloca on of resources. Some mes it just leads to making bad investments, but most mes it has created obvious asset price bubbles and crashes. The fact is that bubble-economics does not work. And, infla on reduces the purchasing power of one’s currency.

A clear message from one of the most respected U.S. economic forecasters (8) is that “we face a long decade of less than zero growth, high-stress chronic unemployment, accelera ng global unrest, regional conﬂicts, …….”. To this list, I am adding the probability of escala ng trade wars, the bankruptcy of a number of sovereign na ons in Europe and the Americas, and massive currency devalua ons and capital controls to stop the “ﬂight” of money. All of these happened in bad mes in the past.

In the debate of whether we should be prepared for defla on or infla on, it should also be recognized that recessions are, by defini on, defla onary. Deleveraging events are also defla onary. A recession accompanied by deleveraging is especially defla onary.

These are expected to happen because “much of the excesses and financial leverage built up in past decades, especially in the financial sector globally and among U.S. consumers, remains to be worked off.”

Of course, eventually, the prin ng of enormous amounts of money by the FED and the ECB is going to stoke much inﬂa on. However, that is the least of our worries now. A second myth that seems to be believed by so many is that the U.S. Federal Reserve (FED) Chairman is an all-knowing economic and ﬁnancial WIZARD. And, even scarier, that he has good control over the markets and the economy Let’s review some issues about which Chairman Bernanke seemed to have been completely out of touch: In 2006, even a er widely published reports more than a year earlier of an unprecedented housing bubble, he said that housing prices would probably keep rising. This bubble burst within six months of his statement. In May 2007, he said “the Sub-prime mess is grave but largely contained.” He was soon therea er proven to be very wrong. He also said Deriva ves were safe because they were

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The sooner people realize the economic slowdown is already underway, is spreading around the globe, and is expected to be severe and prolonged, the sooner they can start preparing to minimize the inevitable impacts on themselves and their families. Escala ng chronic youth unemployment and a reduc on or possible loss of pension benefits could be among the bad happenings. SOME GOOD BUBBLES Let’s finish with a review of some major new Job Opportuni es, along with reports of future significant Health and Financial Benefits. This should be an exci ng era for those with, or acquiring, medical, biotech, other sciences, or other appropriate backgrounds because breakthroughs are happening in the treatment of many, heretofore, devasta ng illnesses from Alzheimers to Cancer. Thus, openings for a range of skilled, high-paying jobs should balloon. Of course, many affected pa ents will benefit profoundly.

In addi on, the need for a whole range of services to support and entertain our aging popula ons will also keep expanding. Again, a wide range of skills and/or experience, not just liberal arts degrees, will be needed to keep filling the job openings. Another exci ng and job-crea ng technological breakthrough made in the U.S.A., is the development of fracking to unlock vast deposits of natural gas (NG) and oil that were, heretofore, not feasible to extract. This technological breakthrough is crea ng a ballooning demand for jobs in many regions throughout the U.S. And, this demand is not only for skilled jobs to operate the rigs or build the collector pipelines. There are homes and new subdivisions to be built for the new employees; there are staff buses and support trucks to be driven; etc. etc. In addi on to the huge surge in employment opportuni es, the rapid ballooning of oil and NG produc on in the U.S. is contribu ng hugely to State and Federal government finances as well keeping more and more of our money from being shipped offshore to oil-producing na ons. And, as this development ballooned so quickly, it has created a huge glut of natural gas (NG) which, of course, has driven its price down to rock-bo om. This is not good for investors, but is providing enormous cost benefits to the myriad of users. Not only is NG used by many for home hea ng, an increasing number of power plants in the U.S. have been built or converted to NG to produce electricity. NG is also the primary feedstock for the produc on of a wide range of plas cs products and man-made fibers. Thus, rockbo om NG prices are indirectly a substan al cost benefit to Americans. And, it gets even be er! The current glut and vast new reserves of NG has both depressed prices, as well as crea ng the long-term feasibility to convert fleets of trucks and individual vehicles to use NG for fuel instead of oil-based gasoline and diesel. Obviously, the widespread commercial use of NG fuel for the full range of vehicles will require the produc on and installa on on a grand scale, of the high-pressure tanks and specialized equipment, plus the distribu on systems needed to supply NG throughout the many regions of North America near exis ng and future sources. Of course, you are aware that NG is a cleaner burning fuel. This large-scale conversion will be a very expensive proposi on, but the good news is that it is now ge ng underway. Royal Dutch Shell just announced a giant project in partnership with an American gas sta on operator, which will drama cally change the energy world. The first phase will be the building of LNG plants and systems to service the chain of 100 fueling sta ons for heavy-duty trucks across the U.S. next year.

fueling chain along 1,600 km of highway between Fort McMurray and Vancouver. Shell has called this its Green Corridor project, and the B.C. government is onboard. Furthermore, there are plans to refine and sell LNG as fuel for trains, ships, and to power large engines used in mining and manufacturing. This start of a commercial energy “gamechanger” by Shell, is expected to create a ballooning number and range of permanent good-paying job opportuni es. The con nuing development of the Oil sands in Alberta is also crea ng many highly-paid job opportuni es. With regards to the concern for pipelines, there are already 125,000 miles of pipelines being used in the U.S. And, the fact is that high pressure pipelines as well as ones needed to pipe the most highly-corrosive liquids, have already been produced for industries. There is another reason that I believe pipelines can be designed and built to carry bitumen safely to the Gulf and West Coasts, as well as shipped offshore. The Kinder Morgan Trans Mountain Pipeline system to transport crude oil from Alberta to the B.C. west coast Burnaby terminal has been in opera on since 1953. Then crude oil has been shipped from that terminal by tanker passing Vancouver, going under the Lions Gate Bridge and through the Puget Sound to refineries in Washington State and California. And Venezuela has been shipping heavy-crude oil by tanker through the Gulf of Mexico’s “hurricane alley” to U.S. Gulf Coast refineries for many years. Thus, the ways and means to trans-ship crude oil offshore safely has already been demonstrated over the past decades. Therefore, instead of buying into theore cal concepts that it cannot be done without destroying west coast lands, rivers, and the sea, it would seem to be more construc ve to support efforts by government and industry technocrats to ensure the highest standards and best prac ces are adopted and implemented. The bo om line is that the U.S. and Canada both need to have a huge number of new job opportuni es con nually being created over the next decade, for the large number of new entrants each year looking for good paying employment in this worsening economic environment, as well as for the already unemployed. And, the viability of maintaining public service employment will depend on the revenues generated. You have probably heard the expression: Lead, Follow, or Get Out of the Way. As usual, governments are not the leaders in crea ng the ballooning new opportuni es. We can only hope that they will follow, support, and cooperate with the industry technocrats; or at least, get out of the way. Please note that the opinions expressed in this ar cle are solely those of the writer. For more informa on and reference details, please contact Alan Weeks by e-mail: imccr2002@yahoo.com

In Canada, Shell has made a similar deal to build a truck-

July - August 2012

Exchange rate of the Costa Rican Â˘ to the US Dollar December January February March April May

518.33 514.91 516.94 513.83 509.59 507.30

Basic Interest Rate December January February March April May

8.00 % 8.75 % 9.00 % 9.25 % 9.50 % 10.00 %

Exchange rate of other currencies to the US Dollar Giro Canadian Dollar Euro Swiss Franc Nicaraguan Cordoba Danish Krone Norwegian Kroner Swedish Krona Honduran Lempira Bri sh Pound Argen ne Peso Columbian Peso Mexican Peso Dominican Peso Brazilian Real Guatemalan Quetzal Korean Won Japanese Yen Venezuelan BolĂvar Hong Kong Dollar Taiwan Dollar Bolivian Peso Chilean Peso Russian Rouble Peruvian Sol Polish Zloty Australian Dollar Chinese Yuan

1.51026 1.03150 1.23800 0.97000 23.34650 6.00260 6.08580 7.25600 19.05500 1.54400 4.38130 1,835.00000 14.28660 38.99000 2.02620 7.80450 1,180.33000 78.46000 4.29470 7.76530 29.83800 7.01000 520.70000 33.51080 2.70680 3.56500 0.97130 6.36850

Libor Rate 1 month 3 month 6 month 12 month Prime Rate

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0.23875 % 0.46685 % 0.73640 % 1.06920 % 3.25 %

Holidays of Costa Rica Wednesday, July 25th Guanacaste Day- Na onal Holiday ARCR Closed Thursday, Aug 2nd Our Lady of Los AngelesObservance. ARCR Closed Wednesday, Aug 15th Mothers Day- Na onal holiday ARCR Closed

Saturday, Sep 15th Independence Day- Na onal holiday ARCR Closed 14th A Touch of Wisdom “Anger is a short madness.” - Horace (65-8BC) “Don’t burn your bridges behind you.” - unknown “Every dog is allowed one bite.” (commonlaw rule that no dog is put to sleep a er just one bite.) - V.S. Lean (1902) A Bit of Fun... Morris, an 82 year-old man, went to the doctor to get a physical. A few days later, the doctor saw Morris walking down the street with a gorgeous young woman on his arm. A couple of days later, the doctor spoke to Morris and said, “You’re really doing great, aren’t you?” Morris replied, “Just doing what you said, Doc: Get a hot mamma and be cheerful.” The doctor said, “I didn’t say that.. I said, You’ve got a heart murmur; be careful.”

July - August 2012

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