El Residente A Publica on of ARCR Administracion S.A.
September - October 2012
September/October 2012
ARCR Administracion S.A. Apdo. 1191-1007 Centro Colon San JosĂŠ, Costa Rica 1 (www.arcr.net)
Contents: President’s Message................. 3 Learning the Language............. 4 - Chris Howard
The New Currency................... 7 Discount Program News.......... 8 Club Corner.............................. 11 ARCR Update........................... 12 A Day in the Life...................... 14 - Allen Dickenson
Editor’s Note Our cover this month depicts the new 20000 bill. Now you should be able to recognize most of the new notes finally being circulated. Next issue we will cover the last one, the ¢50000. Allen D. is covering Topes this me around, which is good ming for the upcoming holidays, these events will be held all around the country, where you may also stumble across a scorpion or two, which is my topic of interest this me in Wild Side. Hopefully you won’t stumble across them blindly and get stung. And speaking of ge ng stung, it looks like some new tax issues are once again on the horizon. We’ll give you an overview of that, along with more informa on on the residency changes, and the usual havoc that accompanies them. Remember that here at the ARCR we are always happy to hear from you on any subject, and if there are any topics that you would be interested in seeing published here, we would like to know.
Wild Side of Costa Rica............ 18 - Ryan Piercy
Legal Update, Sue!.................. 20 - Allan Garro N.
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.
See you next me, 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.
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President’s Message by Mel Goldberg Did You Know? Did you know that all members of ARCR are en tled to receive mail which has been forwarded through Areocasillas at the Casa Canada offices, WITHOUT having to pay the annual fee? All you pay are the charges per piece received (about $.71 each.) Aerocasillas will even bill to your credit card. Want to know more? Talk to Edwardo in the mail room / library. Travel insurance can be important when traveling out of the country, even to those who reside here in Costa Rica permanently. This includes traveling back to their original home country. Having ended up in a hospital emergency room in the USA twice in the last three years, I can a est to the importance of travel insurance and think it is more than worth the investment. Travel insurance is available through some credit cards companies, travel agents, or airline reserva ons web sites. One such insurance company I am familiar with, and have used sa sfactorily, is BUPA. (They have, however, recently informed me that they will no longer write policies for persons over seventy years of age, so it is important to check with the insurer about any restric ons before purchasing.) You may have no ced that there are a large number of old vehicles on the streets and roads here in Costa Rica – some so old they even have chrome bumpers! One reason for that is the lower cost of repairs here. The cheaper cost means that some mes cars which have been totaled elsewhere are sent here, rebuilt, and sold to local, unsuspec ng buyers. The caveat of “buyer beware” applies if you are car shopping.
Very o en people inform me that someone at the American Embassy has told them something about which they are unsure. In order to verify the informa on, the name of the embassy employee (first or last or their ID number) is needed. It is always a good prac ce to note the employee’s name / ID number when receiving advice or informa on. On the subject of dealing with the Embassy, people are s ll arriving randomly, expec ng to meet with someone in the Federal Benefits Unit without an appointment. THEY WILL NOT BE SEEN WITHOUT AN APPOINTMENT. It ma ers not how far one travels, or the reason the mee ng is desired, an appointment is required. Appointments can be made in advance by calling 2519-2228 between 8:00 and 11:30 AM, Monday through Friday. Please, if you know anyone who doesn’t keep up with the news, remind them that an appointment is now necessary. I have been working with two surviving spouses of USA expats trying to get their VA Life Insurance or Federal Employees widow pension benefits. If your spouse will be en tled to any insurance, pension, or benefits payments, please make prepara ons for them now. That can include contac ng the insurance or pension plan administrator and making sure that all necessary paperwork has been completed. This is especially important if he or she does not speak English. Something else that should be done is to assure that any bank / financial accounts held outside Costa Rica are in the names of both the husband and wife. (Use the word “OR” not “AND” as “AND” requires signatures of both holders.) This step assures that funds can be accessed by the survivor if the primary account holder is unable to sign. Along those same lines, it may be advantageous for foreign spouses to have made contact with their spouse’s children and rela ves back home before the need arises. It is beneficial for surviving rela ves to know who is contac ng them.
If you are a recipient of US Social Security payments and you receive FORM SSA-7162-OCR-SM “Report to the United States Social Security Administra on” (which the SSA calls the Foreign Enforcement Ques onnaire) you MUST complete it and mail it back, (DO NOT FAX – the form must bear an original signature) preferably in cer fied form. If you ignore this form your Social Security payments will be withheld un l it is received.
A special ceremony for Commonwealth Remembrance Day – United States Veterans Day will be held by the Escazu Chris an Fellowship at the Interna onal Bap st Church of Escazu on November 11th. The 5:00 PM service will be officiated by Pastor Stacy Steck. Ambassadors and Diplomats of various allied countries will be a ending. Everyone, especially veterans and their families, is invited. Refreshments will be served following the service.
If you plan to vote in the November United States Presiden al Elec on, you will need an absentee ballot from your local elec on board. You can contact either Democrats Abroad or Republicans Abroad (even if you are an Independent) to register and assure you receive a ballot. See the Club Corner page for contact informa on.
Don’t forget about the First Friday of the month, no-host luncheon. It’s open to everyone who wants to a end. Just show up about 1:00 PM at Mac’s American Bar in Sabana. Good food, good company. See you there! As always, if there are any ques ons about anything here, call me at 8870-6750.
Cover: Volcano Hummingbird (Selasphorus flammula) This li le three-inch hummingbird, known locally as Chispita volcanera, is special in that it has varied throat coloring depending on its area. Endemic to Costa Rica and part of Panama only, it can be found above 1200 meters, or above 1850 meters when breeding. Throat color is pink in the Irazu range, red in the Poas/Barva range, and purple in the Talamanca range (see cover). They prefer to inhabit paramo, scrubby volanic produced second-growth, landslide, and other open areas. They are closely related to the Scin llant Hummingbird found at lower levels. September - October 2012
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Learning the Language by Chris Howard Caer & Falling In Spanish the verb caer usually means to “fall.” However, it is used in a number of idioma c expressions. Here are some expressions with caer and “to fall.” Caer como moscas – to drop dead like flies. Caer el gobierno or ciudad or person– the government or city or person fell (figura vely) Caer de pie – to land on one’s feet. Caer en desgracia – to fall from grace or disgrace. Caer en gracia – to please Caer en una trampa – to fall into a trap. Caer enfermo – to fall ill. Enfermarse is used more o en. Caer en la costumbre de – to fall into the habit of Caer en saco roto or oidos sordos – to fall on deaf ears Caerse de sueño – fa gued Caerse de cabeza – to fall over frontwards Caerse de espaladas or caerse de culo (vulgar) – to fall over backwards Defraudar las esperanzas – to fall short of somebody’s expecta ons Dejarse engañar – to fall for something. Dormirse or quedar dormido – to fall asleep El acento cae sobre la segunda sílaba – The accent falls on the second syllable. El cumpleaños cae en martes – the birthday falls on Tuesday. Enamorarse de – to fall in love with La persona me cae mal – I can’t stand that person. La comida me cayó mal – the food disagreed with me. Quedarse atrás – to fall behind Quedarse corto – to fall short of something Romper filas – to fall out (military) Tener un desacuerdo – to have a falling out Caer enfermo – To fall ill. Enfermarse is more commonly used. Caerse a pedazos – to fall apart. Deshacerse is also used to express this idea. La persona me cae bien – I like the person. Gustarle is used when you like the person roman cally. A mí me gusta María. I like Mary. Encajar – to fall into place or fit in. Todo empezó a encajar. Everything began to fall into place. Algunas personas no encajan. Some people don’t fit in. Fallar – to fall through. Mis planes fallaron. My plans fell through. Recaer – to fall or fall on. La responsabilidad recae en . The responsibility falls on you. Tiquismos (Costa Rican expressions) of the week: Clavar el pico – to fall asleep Caer por su peso – to be self-evident or to go without saying
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Take Note of the New Currency 20000 Colones Costa Rica’s new 20,000 Colon note went into circula on on September 22, 2010. To date it is the largest denomina on banknote issued in the country, pending the s ll to be released 50,000 Colon bill. This currency is easy to tell from others due to its orange color. The face features the image of Maria Isabel Carvajal, who was the first prominent female Costa Rican writer, publishing under the pseudonym of Carmen Lyra.
Characteris cs of Costa Rican Twenty Mil Bill: Size: 153 x 67 mm Substrate: 100% co on fiber paper Predominant Color: Orange Mo f: Illustra ons from “Cuentos de mi a Panchita” Personage: María Isabel Carvajal “Carmen Lyra” (1888- 1949) Ecosystem: Montane grasslands and shrublands Featured Species: Volcano Hummingbird Papelillo (daisy family) directed the kindergarten in the Edificio Metálico, the first educa onal center with this focus in Costa Rica, primarily serving children in need. She was also the first professor in the Department of children’s literature at the Normal School. Her first novel En una silla de ruedas (In a Wheelchair), published in 1918, portrays na onal customs and manners through the eyes of a paralyzed boy who grows up to become an ar st. A collec on of folk tales Cuentos De Mi Tia Panchita (Tales of My Aunt Panchita) was published in 1920 and has remained con nuously in print.
Maria Isabel Carvajal was born in 1888, and from a young age her sensi vity and social concerns led her to par cipate in various social and poli cal ac vi es. She was a notable educator, working first as a nurse, then as a journalist, co-founding the Centro Germinal for evening classes in 1910 and star ng the first Montessori pre-school in La n America in 1926. She was poli cally ac ve in the Communist Party of Costa Rica, (she is credited with transla ng the Communist Manifesto into Spanish in 1920) and was one of the earliest writers to cri cize the dominance of the fruit companies. With extraordinary courage, she mobilized students, women, and workers to fight against the fierce dictatorial state of the Brothers Tinoco. In 1916 she had a major role in organizing women schoolteachers to burn down the building that housed the official newspaper and to overthrow the Tinoco brothers dictatorship. She was given a scholarship to study at the Sorbonne, in Paris, France, where she furthered her studies of preschool educa on. On her return she founded and September - October 2012
Carmen Lyra’s relentless efforts were the breeding ground for what was to be her life of confronta on. As Costa Rican poli cs, under pressure from the United States, moved to the right, she and other le ists were dismissed from their teaching posts in 1933. She went on to take a leading role in the banana workers’ strike of 1934. Carmen Lyra became an icon for her people, becoming an essen al part of people’s movements in the first half of the twen eth century. She le a legacy of vital importance to the na onal culture. Maria Isabel Carvajal died in Mexico in 1949, where she had been exiled following the end of the Costa Rica Civil War in 1948. She was one of the most vivid examples of struggle and perseverance in Costa Rica’s na onal history. A woman like few others, one who in the turbulence of her era fought without hesita on, figh ng for the social and poli cal demands of the people she loved. In July 1976 she was recognized by the Costa Rica Legisla ve Assembly and awarded the honor of Benemérita de la Cultura Nacional. Brief wri en by: Osvaldo Valerín Ramírez. 7
Discount Program News by ARCR Welcome to New Hotels
With the publishing of this years new discount directory we have made a new alliance with the Camara Costarricense de Hoteles, and we would like to take this opportunity to welcome them, and the par cipa ng hotels, into our program. We hope that members will endevour to take advantage of these oers when they are able to. Alberge del Teleferico Bosque Lluvioso Caribe reservations.cr@rainforestadven ture.com Disc. 15% hotel Apartotel Los Yoses San Pedro losyoses@racsa.co.cr Disc. 15% hotel Apartotel & Suites Casa Conde Parque de la Paz San Jose reservacionesventas@grupocasa conde.com Tel. 2586-7300 Disc. 15% over rack rates Apartotel & Suites Villas del Rio Escazu reservation@villasdelrio.com Tel. 2208-2400 Disc. 15% hotel
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Cacts Hotel San JosĂŠ, Av @ 3 Calle 28-30 www.hotelcacts.com reservas@hotelcacts.com Tel. 2221-6546 Downtown hotel Disc. 20% Casa Conde del Mar Hotel Playa Panama Gte. operacionesccm@grupocasaco nde.com Tel. 2672-1001 Disc. 15% hotel Condo Casa Inn Valle Central condocasainn@yahoo.com Disc. 15% hotel
Hacienda Guachipelin Guanacaste reservas@guachipelin.com Tel. 2665-3215 Disc. 15% hotel Hacienda Pozo Azul La Virgen, Sarapiqui info@haciendapozoazul.com Tel. 2438-2616 Adventure/Nature Disc. 25% hotel & adventures Hotel Arenal Kioro Suites & Spa San Carlos info@hotelarenalkioro.com Disc. 15% hotel
Cristal Ballena Hotel Resort & Spa Pacifico sur info@cristal-ballena.com Disc. 15% hotel
Hotel Arenal Volcano Inn San Carlos Reservaciones1@arenalvolcano inn.com Tel. 2479-1122 Disc. 15% hotel
Doubletree Resort by Hilton Puntarenas Bianka.luna@hilton.com Tel. 2663-0808 Disc. 15% hotel
Hotel Belmar Monteverve, Puntarenas info@hotelbelmar.net Disc. 15% hotel
El Paso de las Lapas Eco boutique Hotel 4****stars Jaco Beach www.elpasodelaslapas.com Tel. 2643-5678 Ecological Hotel, Kitchenette etc Disc. 25% code VIP Grand Hotel Costa Rica Downtown San Jose reservations@grandhotelcostari ca.com Disc. 15% hotel
Hotel El Establo Monteverde info@elestablo.com Tel. 2645-5110 Disc. 15% hotel Hotel El Robledal Valle Central info@hotelrobledal.com Disc. 15% hotel
Hotel El Rodeo San Antonio de Belen info@elrodeohotel.com Disc. 15% hotel Hotel La Condesa San Rafael, Monte de la Cruz, Heredia reservations@hotellacondesa. com Tel. 2267-6000 Disc. 30% over rack rates Hotel Magic Mountain La Fortuna, San Carlos reservations@hotelmagicmount ain.com Disc. 15% hotel
Hotel Byblos Resort & Casino Manuel Antonio Beach info@bybloshotelcostarica.com Disc. 15% hotel Hotel Casa Chamaleon Puntarenas info@hotelchamaleon.com Disc. 15% hotel except last 2 weeks Dec.
Hotel Makanda by the Sea Mid Pacific info@makanda.com Only adults Disc. 15% hotel
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Hotel Presidente San Jose downtown info@hotel-presidente.com Disc. 15% hotel Hotel Sabana B&B Sabana North go@costaricabb.com Tel. 2232-9140 Disc. 20% cash over rack rates
Laguna del Lagarto Lodge Boca Tapada Rio San Carlos lagarto@racsa.co.cr Tel. 2289-8163 Spc $38/pers (+tax) Occidental Allegro Papagayo Papagayo Tel. 2690-9900 Reservations Tel. 2248-2323 Disc. 10%
Selva Verde Lodge Puerto Viejo, Sarapiquí Tel. 2766-6800 Disc. 10% (5% Credit Card) or specials Sleep Inn Paseo de las Damas San Jose DownTown corporativo @sleepinnsanjose.com 4 **** star Tel. 2521-6500 Handicap facilities, free transp.airport Disc. 30% over rack rates Tabacon Grand Spa Thermal Resort San Carlos Sales@tabacon.com Special Packages for ARCR
L’Acqua Viva Resort & Spa Playa Guiones Guanacaste www.lacquaviva.com reservations@lacquaviva.com Disc. 15% except last week Dec.
... addi onally, these other fine proper es also offer discounts to the ARCR members. Apartotel Plaza Real www.plazareal.cr info@plazareal.cr Tel. 2290-6409 / 8812-4525 Disc. 20% cash 10% c.card Cariari B&B Av La Marina #12, Res Cariari www.cariaribb.com Tel. 2239-2585 Disc. 10% cash Casa Alfi San José, Av 4-6 Calle 3 In front of Colegio Señoritas Tel. 2233-1805 / 2221-2102 Downtown hotel Disc. 20%
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Playa Nicuesa Rainforest Lodge South Pacific Reservations@nicuesalodge.com Disc. 15% hotel
Tamarindo Diria Beach & Golf Resort Tamarindo Beach, Guanacaste reservas@tamarindodiria.com Disc. 15% except last week Dec.
Complejo Turística Huetares Atenas Tel. 2446-4147 B&B, sp/en/fr/gm Disc. 15%
Cristal Azul Hotel Nicoya,Gte. zene@cristalazul.com Tel. 2655-2012 Disc. 15% hotel until 15-12-12
Conchal Hotel 200 m South Esuela Brasalito Brasalito, Guanacaste conchalhotel@gmail.com Tel. 2654-9125 Disc. 20% (except Christmas and Easter holidays)
Hotel America Heredia downtown reservaciones@hotelamericacr .com Tel. 2260-9292 Special low rates Disc. 20%
Costa Rica Secluded Retreat BB San Rafael de Escazu Costaricasecludedretreat.net Tel. 2228-2191 B&B Dog Friendly Disc. 10% cash 5% c.card Costa Verde Condovillas Manuel Antonio Beach reservations@costaverde.com Tel. 2777-0584 Disc. 20%
Hotel El Mono Feliz Ojochal (de Osa), S of Quepos info@elmonofeliz.com Tel: 2786-5146 Discount: 15% off rates for Cabins & rooms (cash) (except Dec15-Jan 15 and Easter week) Not valid w. other discounts Hotel Fantasias del Pacifico Orotina, Alajuela Tel. 2428-2261 Disc. 10% hotel, 5% restaurant
Tango Mar Beach Hotel,Spa & Golf Resort Central Pacific reservation@tangomar.com Disc. 15% hotel Villa Blanca Hotel San Ramon Alajuela info@villablancacostarica.com Tel. 2461-0300 Disc. 15% hotel except last 2 w. Dec Xandari Resort & Spa Tacacori Alajuela Hotel & Spa, 24 Villas individually designed with impressive views of the valley. Senderos, orquideas, 3 swimming pools, restaurant. No internet or TV. Tel: 2443-2020 email: info@xandari.com Discount: 25% rooms during 2012
Hotel Parque del lago Sabana East reserve@parquedellago.com Tel. 2547-2000 Disc. 10% Jan-Apr 15% to Dec over rack rates Hotel Si Como No Manuel Antonio Beach sales@sicomono.com Tel. 2777-0777 Disc. 15% hotel Laurin B&B Trejos Montealegre, Escazu casalaurin@gmail.com Tel. 2289-4198 Disc. 15% cash 10% c.card Out Of Bounds Lodge Escazu old road Tel. 2288-6762 Bed & breakfast Disc. 10% cash
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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. 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 O’Connell at walkergold@yahoo.com or 8919-8947, or Mel Goldberg at 8870-6756. 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. 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. For more informa on Call the LTG Box Office 8858-1446 or www.li letheatregroup.org
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Marine Corps League Meets at 11am the 2nd Saturday of every month, at Tres Hermanas Rest. big bull statue in front. On service road opposite Hospital Mexico on the autopista. 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 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 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 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 No-host lunch at 12 noon in the Club Colonial Casino dining area, mee ng at 1:30 pm on the second floor. All members are welcome plus veterans who served overseas may join. Call Bob Sempell at 2588-1475.
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ARCR Update Residency - S ll More Fallout As we detailed in the last issue of El Residente, the newly published rules have brought many posi ve aspects, but some also decidedly nega ve ones.
However things may begin to fall together (or apart) one thing is certain. That is the importance of not trying to accomplish too much in too short a me, as usually all that is accomplished is greater levels of frustra on.
In par cular, the Transitorios that have been published are allowing for many individuals to become legal, but they are also taxing greatly the government services that are related to the process. Currently the biggest effects we are seeing are excessive lines and wai ng at the office for Huellas, or fingerprin ng. There is only one loca on for Costa Rica to fingerprint people for all types of processes in which they are required, from residency, to permits, to crime. Based on the number of people trying to obtain services, reports are that people are wai ng from the very early hours of the morning, or even camping out overnight in order to try and get this step completed. Many find that it’s silly, or even downright ludicrous, that there is only one small office for this process to be carried out, and we agree wholeheartedly. Unfortunately we also know that a empts have been made to decentralize this, and allow for other police authori es to handle it themselves, but all have failed. It is unknown to us as to why, but eventually the service is pulled back onto this one office, perhaps due to security reasons, or maybe even lack of equipment & materials. In the end it amounts to the same thing, one office, and long waits. But this may be just the start of things to come. With so many individuals star ng to process, or upda ng their ID, it can only be a ma er of me before Migracion itself is once again saturated. Addi onally they have changed their policy, and now if you wait in line for Migracion services, it is only possible to accomplish one item per visit. If you have a second issue, come again another day, and wait some more.
One for you, Nineteen for me Despite the recent fall of Costa Rica’s tax package, s ll more bills are being studied in the legislature in order to stem the countries growing problem: lack of funds. One of the bills focuses on tax collec on, which has always been an ongoing problem for the Costa Rican authori es. The plan is to enforce collec on of taxes on a quarterly basis in order to help government cash flow, and addi onally to easier access of informa on in court cases. One major impact that could affect foreigners is in the sale of Real Estate. The hope of the government is to ensure that transfer of ownership of any property become a taxable event, even in the case that transfer is made through the transfer of corporate shares. This decades old prac ce of simply selling the holding corpora on in order not to pay transfer taxes has been used by most owners, and in fact has always been recommended by a orneys here. On a different note, that is not to say that corporate ownership is not useful, as it can s ll be very beneficial in estate planning, even in light of the new corporate taxes. The second bill on its way to becoming law is in regards to Bank Transparency. The law could make it easier for a judge to open accounts for review in cases including tax issues, and also may promote Exchange of Informa on with other countries. Measures which the government hopes will help take Costa Rica off of the famous blacklist of the Organiza on for coopera on and Economic Development. “‘Cause I’m the taxman...”
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A Day in the Life by Allen Dickenson Tope? What’s a Tope? Pronounced “tow-pay” the word is commonly used to mean horse parade. But what it really is, is a gigan c street party – with lots and lots of horses. I mean LOTS! Imagine as many as a thousand horses and riders walking along a preplanned route through a city’s commercial area. Well, walking isn’t all the horses do; there are prancing horses, high-stepping horses, dancing horses, horses twirling, and occasionally a galloping horse or two. A Tope is an hours long promenade of horses doing just about anything their rider can train them to do.
During the procession the riders (consis ng of men, women, teenagers, girls, boys, even some small children) and the spectators are all having a great me. There are even, some mes, some of the local police riding horses. And everyone (except the police officers of course) wear the requisite cowboy hat and boots. In order to have a really good me, one MUST have a cowboy hat. Luckily, if you don’t already have one, and the desire to own a cowboy hat strikes you, a Tope is the ideal me and opportunity to get one. There are myriads of vendors walking the streets of the route hawking cowboy hats in hundreds of styles, colors, designs, construc on, and materials. They range from (mostly) cheap to moderate in prices. Nor are cowboy hats the only thing being peddled by street vendors; at least once in every block, and in some places more o en, there’s someone who has set up a grill, maybe one made from an old car wheel, and is selling fresh shish-ka-bobs (beef, pork, fish, and shrimp are some of the offerings.) Other wandering entrepreneurs offer cold drinks (beer is sold clandes nely by some) bags of chips, and other snack items. Many people bring their own food and refreshments; large coolers filed to the brim, abound.
Usually, that’s about all there is – no marching bands, no floats, no organized groups like clubs, or elaborate costumes or liveries. It’s just individual riders and their horses. But, if you admire pre y and well trained horses, a Tope is the place to see them; there is nearly every descrip on of horse you can imagine: big ones, small ones, grey ones, dapple ones, paint ones, chestnut ones, black ones, horses of mixed colors, even pink horses. Yes, pink – I think there’s some albino thing going on with them. But, it’s not JUST horses and riders alone. Topes are family events and for every horse / rider there’s ten, twenty, maybe even more, persons of all ages lining the streets cheering, hollering, waving, and talking to friends riding by. Through it all, while the kids are running, hollering, and chasing each other around, for the adults the beer flows freely. (If one had a royalty arrangement on all the beer sold at one Tope, they’d be rich!) A Tope is a serious party and everyone is set on having fun! (And as an added a rac on, Topes a ract some of the pre est girls Costa Rica has to offer.) El Residente
The best way to a end a Tope is to get an invita on from a Tico friend whose home, or the home of their friend or rela ve, is along the route. The advantage is that those usually give the guests access to a bathroom, something the beer drinkers can appreciate because port-a-po es are few and far between. 14
main ac vi es can be problema c; if you want to leave before the event is over, and need to get to the other side of the area, the only op on is to find your own path around the site on un-marked back roads. And expect horrendous traffic jams when you do find the route. Topes are great fun. Everyone should experience at least one Tope during his me here. The horses are beau ful, you get to par cipate in a highly spirited family affair, socialize with people you haven’t seen in a while, meet new ones, and experience a side of Costa Rica you might not otherwise see. Maybe you can even find a memorable hat to buy as a souvenir. Or maybe someone you know will have a flat-bed truck trailer, set up somewhat like a stage, along the route. If you are on one of those it puts you above the walking crowd for a great view. But be prepared – most of these also come equipped with a music genera ng device – something with speakers at least four-feet tall – which are constantly played at high volume. Many are also equipped with impromptu bars. Some mes there isn’t any sea ng – keeping the space clear for dancing has priority. Be aware that if you get an invita on to one of these arrangements, and you plan to sample the bar’s stock, you will be four-feet or so off the roadway and exuberant dancing can cause you to lose track of where the edges of the trailer bed are located.
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.
Costa Ricans love a party and a Tope is one of the pure Costa Rican ways they FIESTA! And it is to the max! Which is not to say it’s a drunken party (there is, however, a goodly amount of intoxica on that goes on – on and off the horses) it’s just a good natured, informal street party. Many Costa Rican towns have their own Tope which occurs at varying mes of the year. If you want to a end one that is widely acknowledged as being one of the best (and biggest) in the country, Santa Ana is where you want to go. Start checking for the date in June. Be warned, Topes con nue for many hours. Generally people start gathering and staking out prime sea ng loca ons hours before the first horse arrives. Then it’s an all day (and for some, an into-the-night) affair. If you don’t plan on spending the whole day there, it’s best to park a distance away and walk to the main area. That’s because, once the fes vi es start, all but emergency traffic will be stopped. Even parking away from the September - October 2012
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Le ers to the Editor Ryan, I’ve been bubbling with enthusiasm and telling local friends about our posi ve experiences, but have not yet sent feedback to the source. Now it is me to share with you. We just returned from a few days of doctor visits and a surgery at Clínica Bíblica. It is stressful to deal with medical problems and treatments; however we have had, again, only the best of assistance from Juan Carlos. He not only explained how our coverage works, but made sure we had all the appropriate forms filled out. In the past, his help with the submission of forms extended to following up to make sure we received our reimbursement. He was even available when I hit a snag while in the hospital--I whipped out my cell phone, called him and he set everything straight right on the spot! I have dealt with many insurance people and agents in North America, and cannot remember one of them who took me to explain insurance in terms I understand plus guided me through the maze of insurer demands to make sure I received the insurance I paid for. I also hear horror stories from friends here in Tilarán who experience nothing but lack of ac on, headache and woes with their local insurance representa ve. Juan Carlos is at the top of the list for clarity, availability and excellent service. Do not ever let him leave. We have been very happy with the services received from ARCR, which have made our transi on to Costa Rica much smoother than an cipated. Having a bank account when we arrived made life much less complicated. Ge ng our drivers license was almost a joy going through ARCR. Your group discounts have stretched our limited funds into a comfortable lifestyle. We have endlessly told expatriate friends about ARCR and I believe most of them have finally joined. ARCR provides an excellent service for those of us who have chosen to explore a different life. Thank you. Sheri King Member, Tilaran Hello Ryan, I just wanted to take a moment to let you know that El Residente
our experiences with ARCR over the past 3 years or so have been very posi ve. While ge ng se led into life in Costa Rica we’ve taken advantage of several of the services ARCR provides. Without excep on the assistance from you and ARCR has made the process simpler, more efficient and less stressful. But even in the midst of all our good experiences one person really stands out. Our INS group medical contact, Juan Carlos Calero, is, and has been, truly excep onal. I have worked with several very good agents during my life me and Juan Carlos is clearly the best. His knowledge of the products available and the ability to navigate the systems involved is outstanding. We have used our medical coverage on several occasions and Juan Carlos has smoothly and successfully guided us through the process each me. His ability to explain how the medical and insurance systems work and what we need to do to take full advantage of our insurance has been invaluable. He has always been available to answer any of our many ques ons and has quickly resolved the few glitches that have crept into the process. In addi on to being a talented employee, Juan Carlos is a genuinely nice guy. His friendly, relaxed, upbeat style makes him easy to approach and to work with. I always have a smile on my face a er a mee ng or phone conversa on with Juan Carlos. Thank you, Kevin Bailey ARCR Member Thank you both, for taking the me to write us, and especially for the praise given to Juan Carlos. I know the Insurance people work really hard (especially to keep me sa sfied) and hopefully our rela onship will be long and beneficial for the members. In fact, apart from the average 30% discount we now have on the Medical Policy, our agent Franklin is now working on discounted policies for both Home and Auto insurance for our members. I will pass on your kind words as well, as I feel it is well deserved. Ryan Piercy 16
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Wild Side LXIX Ryan Piercy S ng like a Bee . . . And in this case I am not referring to the boxer Muhammad Ali, who u ered those words to describe himself, but to scorpions. Scorpions are members of the arachnid family which are very able predators with nasty looking s ngers. Unfortunately, they enjoy a reputa on that has been greatly augmented by television and Hollywood. For some, the mere thought of scorpions is terrifying. That is an en rely understandable fear because they are a fierce looking beast. In reality, however, though they should be dealt with carefully, they are not nearly as dangerous as they have been portrayed. Admi edly you don’t want to step on one, but if you know where they are the chances are you won’t get stung. The s ng of scorpions has a fearsome reputa on because their venom contains neurotoxins and inhibitors intended to kill or paralyze their prey, and which they also use for defensive purposes. There are some kinds which are capable of killing humans, but in actuality, only 25 of the nearly 2,000 species are known to be able to inflict a lethal s ng to a human being. The s ng of the rest, the vast majority, will only cause pain equivalent to a bad bee s ng. Of the fourteen types
known in Costa Rica, locally called alacrans, none have the capability of being fatal to people. Worldwide, scorpions vary in size up to 21 cm, however the varie es found here in Costa Rica range from just 2 to 13 cm in length. O en people relate them to desert or dry habitats, but these insects actually inhabit forests and other zones, ranging from Bri sh Columbia to Brazil, and exist on all con nents except Antarc ca. They can be found throughout Costa Rica from both coasts and in the valleys in between. A few can be seen at al tudes up to 1400 meters above sea level, and Centruroides bicolor, a neat looking two-tone species, can even reach up to 1670 meters here and in Panama. Most species found here are also present in neighboring countries. One, however, Tityus dedoslargos, is Costa Rica specific and is only found in the central pacific zone. They about 9 cm long and are dark colored. They are rare, or rarely encountered, but seem to prefer forests with low vegeta on and can occasionally be found under rocks. There are in fact many species which burrow and hide under rocks during the day. Scorpions are an extremely adaptable species and can survive in many environments. They generally eat insects and other creatures their size, and can amazingly lower their metabolism for survival in any climate, even where there is li le oxygen. Some can even survive an en re year on just one meal. But, they can also react quickly if opportunity for prey presents itself. Another interes ng Costa Rican variety is the Opisthacanthus valerioi, which is found only on the Isla del Coco. It too seems to prefer environments
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with low vegeta on, but li le is really known about it, due in great part to its remote loca on. The genus is dark colored, having whi sh bands across the back and a yellow pped s nger. It is transoceanic with specimens extending as far into the old world as Africa and Ethiopia. Apart from the poisonous aspect related to them, scorpions are o en automa cally associated with the color black. In reality they come in a large spectrum of colors, including yellow, orange, red, tan, brown, black, and even a greenish color. And, for an unknown reason they are also fluorescent under black light. They have between six to twelve eyes, and can live between four and twenty five years. They do eat their own kind, but when they do manage to mate, the mother can have dozens of young, which ride on her back for the first days of their life. With many designs, color sets, stripes, and so forth, they are truly interes ng to examine up close. And, you may as well get used to them; their lineage goes back 430 million years, so they may be around for a while yet.
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Legal Update by Allan Garro N. Being Damaged by the Government? SUE THEM! Costa Rica is a small country with over 260 Public Ins tu ons. This includes all kinds of structures such as Ministries –Health, Security, Tax and Revenue and Jus ce to name a few-, Public Enterprises – Na onal Insurance Ins tute or INS, Electrical Company or ICE, the Oil Refinery or RECOPE-, Municipali es –there are 81 plus at least 2 other en es considered as Municipali es- and the list con nues to almost infinite. It is obvious that the Country does not need such a complex system but that’s our current reality and the truth is new decentralized ins tu ons appear on a daily basis. All of those ins tu ons have direct contact and influence over all ci zens and corpora ons by applying different rules and regula ons, approving or denying all kinds of permits, licenses and authoriza ons as well as gran ng or removing rights of all kinds. The common denominator seems to be that basic rights of both ci zens and companies are violated every day by said governmental monster. The necessary ques on that arises is: Can anything be done to find remedy against such viola ons? And the answer is yes. For many years there was a special law to file lawsuits against the various ins tu ons of the Government, but the procedure became a nightmare because of how hard it was and how long, extending up to ten years or more. This changed in 2008 when a new law came into force called CODIGO PROCESAL CONTENCIOSO ADMINISTRATIVO, crea ng more expedi ous and simpler rules including an essen ally oral and much faster procedure to get any conflict solved. The change also included the crea on of a new Court specifically to handle all cases filed against any Ins tu on belonging to the government in any form. Included among the changes is the possibility of applying for an injunc on with immediate effect to stop ac ons that are against the law and can cause damages impossible to repair if the ac ons are not stopped. Should the injunc on requested be upheld, an oral hearing shall be quick to decide whether the measure is maintained or revoked. Also included is a faster judicial procedure where only the complaint and the answer are El Residente
made in wri ng, and the rest is done by oral hearings, including the final judgment. In some cases if the judge believes that by mee ng certain requirements the case also involves the public interest it can then be processed preferen ally whereby the issue is resolved quickly. Two basic rights o en violated are the Right to Pe on and Prompt Answer and rights related to Administra ve Due Process. Usually the protec on of these rights is called before the Cons tu onal Court, but the new procedure created a figure named AMPARO DE LEGALIDAD with which the Court applies a new expedited procedure to protect them by applying severe warnings to the involved ins tu on in order to force said prompt answer or to apply the correct procedure respec ve to the basic rules of Due Process established by the SALA IV. There is also a procedure to request Court protec on in the event of default, i.e. when an ins tu on is required to do something and it does not. For example when the local municipality fails to install signs in neighborhoods and does not repair the holes in local roads. In this case you must submit a le er to the ins tu on in which it is indicated in the omission while it grants a period of 15 days to comply. If the fault persists then you can file a complaint with the aforemen oned new Court Whatever the problem you have with a public ins tu on is important to know that there are now new procedures that have a reasonable length and can effec vely protect the basic rights of ci zens and businesses even providing compensa ons when there are economic damages challenged by the plain ffs. It is good to know that damages caused by the government opera on can now be compensated respec ng the Cons tu onal principle of Prompt Jus ce. ALLAN GARRO N. A orney at Law. allan@garrolaw.com www.garrolaw.com 20
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Dollars & $ense by Alan Weeks Are You Prepared? AN OVERVIEW OF INSTABILITY (1) “The fundamental problems in the global economy have not yet been addressed; they’ve been papered over with trillions of dollars in printed and borrowed money. However, behind the paper-thin façade of extend and pretend normalcy, the founda ons of the financial Status Quo in China, Japan, the European Union, and the U.S., rest on shi ing sand. By avoiding structural reform in favor of facsimiles of reform, and by fixing overindebtedness with more debt, the Poli cal and Financial Elite with the strong support of Academics and the mainstream Media, have simply increased the height the world will have to fall to correct the imbalances.” “This is not just a failure to reform an opaque and broken financial system; conven onal economics has failed.” The massive global financial crisis has been more than a half-century in the making. As one financial journalist (2) put it five years ago: “Never before in the history of the world have so many people believed so many things that couldn’t be true. Now they owe more money to more people than ever before.” People in governments at all levels in the developed countries also got caught up in the mania and created the greatest debt bubble in history. The Debt Supercycle is now ending and the world has entered the Endgame: a me when bankruptcies and defaults are spreading from households, banks, and companies to ci es and sovereign na ons. There are no painless solu ons to the moun ng debt problems around the world, something that too many people, especially the Financial, Media, Academic, and Poli cal (FMAP) Elites, seem to not yet have realized. The fact is that “Joe Sixpack’s” economy is already deep in recession. And, while the metrics used by the FMAP Elites to gauge economic growth is Gross Domes c Product (GDP), Joe lives in a world of income, expenditures, and net worth. One key issue is that Joe’s real income is now shrinking. And, because his primary asset is his house, Joe’s net worth, on average, is only half as much as it was before the Great Recession. El Residente
Furthermore, it seems likely that the overall US economy is in a Depression and has been since the beginning of 2008. Key elements that are common in a Depression are: Asset Price Defla on, Financial Crises, and Bank failures. These are not normally a part of a typical business cycle recession. As proof that the US is in a modern-day Depression, David Rosenberg (3) recently presented many points, illustrated with charts, to support this claim. Among these, he pointed out that: (i) Government transfers to households now make up nearly one-fi h of total income, nearing an all- me high. (ii) And, while nobody has seen the bread and soup lines that were so visible in the 1930’s, it is only because these days Americans are receiving their bread and soup either electronically or in the mail. As men oned earlier, there are no painless solu ons to the accumulated mountains of debt. And, what needs to be realized is that the long, painful correc on has only just begun. Governments need to quickly take posi ve steps in order to minimize the inevitable pain and discomfort most of us should expect to experience. To date, however, there have been, and will probably con nue to be, many bad choices made by policymakers which will only deepen and prolong the pain. Good decisions will require leaders with clarity of vision and courage, sadly lacking today! BOOM & BUST DEMOGRAPHIC CYCLES (4) Considerable research over many years has shown that the size and age of its ci zens drive a country’s 22
economic growth or decline. And, because people have predictable spending pa erns throughout life, the economic growth or decline of each na on can be predicted well in advance. It is well known that birth rates in most developed na ons peaked in the late 1950s and early 1960s and the whole developed world had this baby boom pre y much peaking at the same me. It used to be that spending of middle-class folks peaked as their children finished school and le the nest. People’s spending then slowed as they prepared for re rement and didn’t need bigger houses or to drive their cars as much. However, with the high rate of youth unemployment, many boomers have had their children return to live at home and remain in the nest while they seek jobs or a be er educa on. This natural life cycle has also been altered by the lure of easy credit and specula on, but the boomers have now started a consumer deleveraging cycle which is unprecedented and inherently defla onary. Harry Dent, (4) author of the book The Great Crash Ahead, has also iden fied another cycle that comes into play. This is an 80-year economic cycle consis ng of two genera onal booms and busts. It was the Bob Hope genera on that drove the US economy up from 1942 to 1968 and then down from 1969 to 1982. Then it was the baby boomers that drove it up again from 1982 to 2007. Dent believes the boomers started in 2008 to drag down the economy. And, he predicts that this bust cycle should last un l 2023. Addi onally, these boom and bust pairs go through September - October 2012
a pa ern which he relates to the four seasons. A defla onary period or depression, as the US is going into now, is the winter season. Meanwhile, north of the US border, it appears that the average Canadian has learned nothing from the housing and credit cycle busts in the US, Ireland, Spain, and elsewhere in the developed world. It is reported that the average debt load of Canadians is now greater than that in the US and Europe. And, the housing bubble in Canada is just now star ng to deflate. Soon, many will probably be mu ering to themselves: “What were we thinking?” With the Depression now sweeping Europe and the US, it is inevitable that debt-laden Canadians will suffer the same fate and that Canada will be dragged down into an economic winter. SURVIVING THE GREAT ‘BUST’ AHEAD Unfortunately, the US FED has been making it very difficult for most of us to earn decent, low risk, returns by dropping and keeping interest rates at zero and using s mulus programs to knock down long-term bond rates. But, when investors go a er yield, as many s ll are, and get into high yield bonds, dividend-paying and preferred stocks, and commodi es, they’ll get “creamed” when the markets crash. It is very important for investors to realize that in a deleveraging environment, all assets go down and there’s nowhere to hide, even in gold. Investors need to stay in US dollars (kept in a very secure depository) as well as in very safe bonds and cash. Thus, Cash is King: Cash and Cash Flow. It is recommended that cash be held in US dollars over the next period because, as some pundits have described it, the US dollar is “the best looking horse in the glue factory.” Dent explains how central bank s mulus programs are “figh ng a fu le ba le because the huge armies of aging baby boomers have reached their economic lifecycles when they curb spending”. As you are well aware, Consumer Spending in the US s ll accounts for over 70% of its economic ac vity. He noted that the top 10% of consumers are the only 23
ones s ll spending, but expects this will be over by the end of this year and will put us into a long-term winter Depression. Thus, Dent has emphasized the need to preserve wealth and the importance of cash and cash flow for investors as he warned that: “with a perfect storm brewing on the horizon, investors should be building their cash cache and running for cover.”
Personally, Dent is now is making investments to actually ‘short’ stocks. Two ETF’s that he men oned liking are Ultra Short ETFs, (EPV) and (SKF).
Another strong warning has just been sounded by the ‘Bond King’, Bill Gross (5). He has warned that “we’re witnessing the death of equi es.” He is convinced that the age-old “buy and hold” inves ng mantra, as well as consistent returns, are things of the past. Furthermore, investors “who bought into the concept of stocks for the long run, or any run, have mellowed as well.”
Also on a personal note, Dent sold his home in Miami in 2005, at the top of the real estate bubble, moved to a non-booming city, and has been ren ng ever since. Of course, he added the real estate proceeds to his stash of cash.
In addi on to being pessimis c on stocks, Gross is also down on bonds. This is because he believes that “policymakers in developed economies will try again and again to inflate their way out of the corner.” I believe that short-term Investment Grade (IG) corporate bonds are s ll good investments for now. This is because I remain unconvinced that the FED & ECB will be successful in refla ng their economies any me soon. This is based on the fact that Japan has been trying for over two decades to reflate its economy by con nuing to push money into the system. And, while Japan didn’t really go into a depression, it has never created economic infla on. However, Japanese government debt has skyrocketed. John Mauldin (6) describes Japan’s situa on now as “a bug in search of a windshield.” [It will go splat!] Because Dent is expec ng another even greater financial crisis to occur soon, he advises, as I have for some me, that those s ll invested in stocks should take advantage of the fact the FED has revived stock prices; sell now, while the markets are s ll up. Then, having accumulated a cash cache, investors can follow the advice of Rothschild, Templeton, and others in the past, and re-invest when the prices are much lower. As one good example, Joseph Kennedy followed this advice in the 1930’s and got out at the top of the market. Then, he waited un l stocks were down 80 to 90% in value to start buying back in at 10 to 20 cents on the dollar.
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We have been recommending, and have stayed invested in, a global, contrarian managed, alterna ve strategy fund which has made good money in bad mes.
Behind the present rose- nted façade, the only limitless resources are paper money and propaganda. Everything else is limited by real world constraints. For this reason, we expect that a er the crash one of the most promising long-term investments will be in agricultural commodi es, because emerging market demand will con nue to be strong. There is good news for those who are prepared to survive the crash. Deleveraging of the whole debt and asset cycle should bring things back to affordability. A er the difficult season ahead one should expect lower prices in general. There will also likely be a trend to support more local markets and ac vi es, a good thing for neighborhoods. On a final note, it is now becoming evident that many na ons around the world are losing faith and confidence in the US dollar and in America. You may already be aware that China and Iran have created a barter system by which Iranian oil will be exchanged for Chinese imported products. In addi on, the na ons comprising the BRICS group recently agreed to establish mutual lines of credit in local currencies. Furthermore, China and Japan, as well as others, plan to bypass the dollar and trade in their own currencies. This trend is growing as many na ons seem to be “jumping on the bandwagon” to do away with the US dollar as the reserve currency, which could happen within the next decade. In a future ar cle, the very severe nega ve consequences of this, as well as some silver linings, will be explored.
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The loss of faith in the US dollar as well as in other fiat currencies should also create another boom in gold bullion. One interes ng ar cle on the subject of the weakening US dollar is tled Death of the Petrodollar is Good as Gold. (7) 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 List of References 1. Charles Hugh Smith, Novelist and economic commentator. Author of: AN UNCONVENTIONAL GUIDE TO INVESTING IN TROUBLED TIMES, Chapter One: An Overview of Instability, www.o wominds.com, 2012 2. Bill Bonner, Founder & President, Agora Publishing, The Daily Reckoning, 2007 3. Steven
Hansen,
Interna onal
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business
and
industrial consultant, JOE SIXPACK’S ECONOMY DEEP IN A RECESSION? Seeking Alpha, June 16, 2012 4. David Rosenberg, Chief Economist & Strategist of Gluskin, Sheff, formerly Merrill Lynch, PROOF THAT WE’RE LIVING IN A MODERN DAY DEPRESSION, Financial Post Business Insider, June 18, 2012 5. Harry Dent, Financial Newsle er Writer, HARRY DENT’S FORMULA FOR SURVIVING THE GREAT BUST AHEAD, Author of THE GREAT CRASH AHEAD, The Gold Report in Seeking Alpha, August 3, 2012 6. Bill Gross, Co-Founder & CIO PIMCO Inc. WE’RE WITNESSING THE DEATH OF EQUITIES, Wall Street Journal, Bloomberg News, July 31, 2012 7. John Mauldin, Financial Expert, Best-Selling Author of: ENDGAME: THE END OF THE DEBT SUPERCYCLE & HOW IT CHANGES EVERYTHING, THOUGHTS FROM THE FRONT LINE: FIRST DEFLATION…Seeking Alpha, June 3, 2012
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Exchange rate of the Costa Rican ¢ to the US Dollar February March April May June July
516.94 513.83 509.59 507.30 503.58 505.98 Basic Interest Rate
February March April May June July
9.00 % 9.25 % 9.50 % 10.00 % 9.75 % 10.25 %
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
1.50833 1.00360 1.22810 0.97830 23.63650 6.05840 6.04060 6.81020 19.05500 1.56310 4.38130 1,789.50000 13.26100 39.10000 2.05230 7.83650 1,130.55000 78.24000 4.29470 7.75340 29.98000 7.00330 482.05000 32.19390 2.62700 3.35080 1.05000 6.36170
Libor Rate 1 month 3 month 6 month 12 month Prime Rate
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0.24570 % 0.44260 % 0.72590 % 1.05350 % 3.25 %
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Holidays of Costa Rica Saturday, Sep 15th Independence Day- Na onal holiday ARCR Closed 14th Friday, Oct 12th Cultural Day- Na onal holiday ARCR Closed A Touch of Wisdom “He that goes aborrowing, goes asorrowing.” - R. Taverner (1545) “In for a penny, in for a pound.” (Being in a li le is the same as being in a lot.) - E. Ravenscro (1695) “Neither a borrower nor a lender be.” - William Shakespeare (1564-1616) A Bit of Fun... Three old guys are out walking. First one says, ‘Windy, isn’t it?’ Second one says, ‘No, it’s Thursday!’ Third one says, ‘So am I. Let’s go get something to drink.’ --A man was telling his neighbor, ‘I just bought a new hearing aid. It cost me four thousand dollars, but it’s state of the art.. It’s perfect.’ ‘Really,’ answered the neighbor. ‘What kind is it?’ ‘Twelve thirty…’
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