El Residente 2013-05

El Residente Costa Rica’s English language newsle er

May/June 2013

¢1500 0 May - June 2013

Pu P ubllish isshe hed b byy ARCR Administracion S.A. Apdo Ap do. 1191-1 100 007 7 Centro Colon SSaan an José, Costa Rica 1 (www (w ww.a .arc rccr. r.n net) net)

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Contents: President’s Message................. 4 Club Corner .............................. 7 My Costa Rican Experience ....... 8 - Albert Corea

Costa Rica on the Globe ........ 10

Editor’s Note As the Spring enters in the North, we normally are accustomed to receiving torrents of rain. However this year has remained quite dry and sunny, leaving plenty of opportunity to con nue to enjoy outdoors.

Some of those ac vi es are actually topics this month, such as si ng on a park bench ea ng tamales, or simply watching the squirrels.

Other op ons may be to look for some outdoor entertainment, as o en found around the country, maybe the arts and some music. Or for something different, take a run downtown.

Wild Side of Costa Rica ............ 12 - Ryan Piercy

American Legion...................... 13 - Memorial Day Picnic

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

Legal Update .......................... 18 - Allan Garro

A City Rejuvinated .................. 20 - Richard Ternouth

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.

Over this year we will con nue to cover the changes seen in San Jose city, as it works on changing its image.

In this edi on we look specifically at Central Avenue, which has long been the heart of the na on.

So may your days remain bright and sunny, as we take you for a journey into the pages of this beau ful country in which we have chosen to reside.

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 Terry Wise

From The Desk...

is becoming a “must have” to live in Costa Rica.

To find out what you need to do to get Residency, contact the office at: legal@arcr.net.

Saludos a Todos.

A new ARCR Office has opened in San Isidro de El General. The office was established to provide services to the growing number of ARCR members living in the southern zone. Un l now, many members had to drive to San Jose to purchase items or conduct business. The new office will provide services to help reduce this need.

San Isidro was chosen as a central loca on in order to help service those in the area as well as out on the coast from Quepos on down south. The actual loca on of the office in town, for those who are more familiar, is 25 meters West and 10 meters South from the Fire Sta on, so only a few blocks away from the Central Park. So next me you are in town stop in and say hello.

ARCR Administra on South Direct line (506) 2770 4070 email: pz@arcr.net San Isidro de El General, PZ Costa Rica Hours: 10 am l 3 pm, Mon-Fri contact Marlene Marin As you may know, you will need to change your old vehicle license plates on your car. The new plates, with a new s cker for the windshield, are an a empt to iden fy stolen plates/cars. There had been a deadline to get it done, but it has been delayed indefinitely. We strongly suggest you get the exchange done soon, before a new deadline is announced and the lines are LONG. If you need assistance please e-mail the office for help at: legal@arcr.net.

Okay, now for a fun thing for you to do. The first Friday of every month we meet for an informal, no-host lunch at a chosen restaurant. For the month of May we will again be at the Casa de Espana Restaurant in Sabana Norte. We try to start at 12 noon and finish when we’re done. I sent an e-mail to President Obama while he is in town invi ng him too. I don’t understand why I have not heard back! In June we will move to The Green Restaurant. For direc ons call the office or e-mail me: coterry33@gmail.com For those of you wan ng to go to a great, old fashioned picnic, the American Legion, Post 10, is pu ng one on Memorial Day, May 27th. Cost is only 7,000 colones per person and ckets can be purchased at the ARCR Office.

Ask for Ivy. For more informa on about the picnic and Post 10, visit: www.amlegioncr10.com If you miss this one, or just simply enjoy picnics, the Canadian Club will also be celebra ng Canada Day with a picnic in Atenas this year. The actual date of the event is set for Sunday, June 30th. Tickets will be ¢2000 at the door, but advance ckets will be available at the ARCR office for ¢1500. Children 10 & under are free.

Entertainment, dancing, games, a silent auc on, door prizes, 50/50, and of course hamburgers and hotdogs will be available for a modest sum, and there will be a cash bar.

For those buying in advance, reserve sea ng will be available for groups of eight, so bring your friends, family, neighbors, or anyone else you know. No passports are required!

In the last issue of El Residente I talked about obtaining a Costa Rica drivers license. I want to emphasize that if you presently hold a Costa Rica Drivers License and need to renew it, you will need a Cedula. If you do NOT have a Cedula, you will not be allowed to renew your license.

Remember, the ARCR is having a 50/50, and the next draw will be July 31. Only ¢2000 per cket and you could be the one to grab the cash. Proceeds are for charity.

As you can see from the previous paragraph, Residency

Take care Terry Wise

Contest Update: My Costa Rican Experience Its always interes ng how people o en go through life with a par cular mindset, and how some mes the atmosphere around us can cause a change in that internal point of view. This issue Albert Corea shares with us a simple day in the park... our third place winner.

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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. Puriscal, Fred 8866-0128.

Al-Anon Mee ngs English language Al-anon mee ngs are open to anyone whose life has been/is affected by someone else’s problem with alcohol.

Mee ngs are one hour long and held twice each week in Escazu centro, above the Buena Tierra Restaurant, 25 meters south of the San Miguel Catholic Church. Tuesday’s at noon and Thursday’s at 10: 30 a.m. Tel: 89 93 17 62 (Rosemary) and/or 22 28 10 49 (Barbara) email: rosemaryzitek@yahoo.com. 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 Bello Horizonte Country Club in Escazu. For informa on and map, go to the website at amlegioncr10.com/met_loc.html, or call John Moran at 22321680.

American Legion Post 12- Golfito Mee ngs are held 4 p.m. 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 Auxiliary The Legion Auxiliary meets the Second Saturday of each month, at 1300 hours in Moravia. Contact Doris Murillo 2240-2947.

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 Join us also on June 30th for our annual Canada Day Celebra on.

This year we will be hos ng a picnic in Atenas, complete with hamburgers, hotdogs, entertainment, and more. Advance ckets are ¢1500, or ¢2000 at the door. Please visit our website for full details on this and other events.

Democrats Abroad Democrats Abroad meets on the last Saturday of every month at the Aurola Holiday Inn, San Jose. Contact Nelleke Bruyn, 22793553, 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

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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 Marine Corps League Meets at 11 a.m. 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 a.m. 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 a.m. at Beso’s Restaurant in Sabana Sur. Contact Dick Macauley at 2439-2897 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 The Women’s Club of Costa Rica is the oldest, con nuously opera ng, philanthropic organiza on for English-speaking women in Costa Rica. Founded in 1940, WCCR now includes over 250 members represen ng 25 countries worldwide, drawn together by the mo o: Friendship through Service. The Club a racts fascina ng women who are interested in serving community needs in Costa Rica, par cularly focused on children’s educa on while, at the same me, making deep, meaningful, personal rela onships.

Along with its philanthropic fundraising ac vi es, WCCR also hosts regular lunches, teas and many special interest groups, including a Professional Women’s Group. Guests are welcome and further informa on and a calendar of planned events can be found at www.wccr.org Women’s Interna onal League for Peace and Freedom Open to men too. English language group in Cariari de Belen, English-Spanish group in Heredia, Spanish language group in San Jose. We work on peace and human rights issues. Call Mitzi, 24337078 or write peacewomen@gmail.com.

Veterans of Foreign Wars: Post 11207 No-host lunch at 12 noon in the Club Colonial Casino dining area, mee ng at 1:30 p.m. 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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My Costa Rican Experience The Grunch’s Punishment

by Albert Corea

“It’s all right,” said the Grunch, “your mom won’t mind.”

It was a beau ful day in Costa Rica.

Okay, you’re right, almost every day in Costa Rica is beau ful. It’s worth men oning about this day in par cular, though, for it was even more so than usual.

Every bird in the land was chirping. Dogs and cats played happily together. Large animals shunned their daily hun ng to lie contentedly in the sun. . Look at it this way; it was so peaceful, people passed by the Grunch on his park bench and none of them stopped smiling.

It had never happened before, not once since the Grunch moved to Costa Rica two months earlier. He was a nephew of a Grinch, twice removed, on his father’s side. He did not abide smiles. Laughter could send him into a blinding rage. When children looked at his face, which had been described by one eight-yearold as a “permanent scrunch,” fear and sadness struck their hearts. They could not resist bi er scowling. Most lapsed into such a state of sullenness it took at least three bowls of ice cream to bring even a hint of a smile back onto their faces.

The Grunch hadn’t moved to Costa Rica for the specific purpose of making the people unhappy. That was just his nature, wherever he was. He’d le the cold North because he simply could no longer stand the freezing weather. He hated it even more than he hated laughter.

The only good thing about cold, he’d thought more than once, was that it makes people who are only happy when they are unhappy, happy. Or, truly unhappy, depending on how you looked at it. That one plus was almost enough to make him move back. Almost.

When he thought about it though, he remembered that freezing feeling; the icy sensa on that chilled to the bone. So cold it seemed to freeze the bone itself.

Happy humming, the sound of a child, came from the Grunch’s right. He shi ed hooded eyes to see what upstart kid dared do that here. It was a li le girl, no more than five or six, skipping toward him. Well, in me she’d learn to be unhappy. Soon, but, not soon enough to suit him. He’d help it along. “Come here, li le girl,” he called out.

She stopped and regarded him with curious eyes. She looked back and saw her mother coming, s ll twenty meters away.

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“You know my mom?” she asked, taking a step toward him.

“I know moms,” he replied, his lips forming a curved line he hoped looked like an honest smile. Kids were so silly they actually liked smiles.

Her own smile lighted up her face and she took another step toward him. She was now just a few steps away, close enough to get a good look at the face that had scared thousands of children just like her. Didn’t she see his face? She was looking right at him, yet spoke happily about moms. “They’re all swell,” she said, “but mine’s the best. You’ll see.”

“Yeah, sure,” he spu ered, “but look closely at my face.

What do you see?” Now that stupid smile would be wiped off her face.

She giggled. “Your nose is funny. Is that a mask? Is it Halloween or something?”

He folded his arms and leaned forward. “Look at my whole face. It is not a mask. It’s me. This is what I look like.” His eyes burned into her.

Sunlight caught the lens of an eye and, in direct opposi on to his intent, it sparkled.

“That’s pre y,” she said. “Your eyes shine.”

He was perplexed. No one had ever said anything so foolish before.

At that moment, the mother, an a rac ve woman in her late twen es, arrived. She carried a basket. “Who’s your friend, Fabiola?” she asked her daughter. Her smile was as broad as her daughter’s. These people were nuts.

“I don’t know his name,” the girl said, “but he has a funny nose and shiny eyes. Look at those crinkly wrinkles all over his face.”

“Now, Fabiola, you know be er than to make fun of people.”

“I’m not making fun, Moma,” the girl protested. “I think he looks nice.”

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“Yes, I agree,” said the mother. “That scraggly look is charming.”

Nice? Charming? What was wrong with these people?

“Do you not see that my face is scrawny and wrinkled horribly?” pleaded the Grunch.

leaf wrappings ght around them. They were s ll so fresh, steam curled up from them.

The Grunch cut into the first hot tamal. It was the kind with extra vegetables to go with seasoned pork. The other was the same, but with chicken.

“I see we arrived just in me,” said the woman. “You’re hungry.”

He ate rapidly and both tamales were gone in a flash.

She put two more on his plate. He ate those quickly, too.

“That’s not what I meant.”

“Sa sfied?” She asked cheerfully. “Feel be er now?”

“Tsk, tsk,” said the woman. “Forget your pride. “We have tamales.” She moved close so she could show him the basket. “It’s padded, so they’re s ll warm.”

“Pura vida,” he said, then jerked his head fur vely around to see if anyone had heard his faux pas. This was ge ng completely out of hand.

Tamales? What was this woman talking about? “No, I’m . . . “ He hesitated when the aroma of fresh cooked tamales wa ed up from the basket and caressed his nostrils. As usual, he hadn’t eaten all day.

He a empted to work a scrunch onto a face that had never before been without one, but all that happened was his brow furrowed deeply with worry. A truth had penetrated a mind that had heretofore successfully withstood such nonsense; he would be forever doomed to spontaneous fits of happiness if he remained in the ever green land.

The woman took a plate from the basket and put two tamales on it. She cut the string keeping the banana

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Costa Rica on the Globe by Ryan Piercy Rock & Roll Following their economic success in the global market, primarily with coffee, possibly one of the greatest desires among Costa Ricans was for access to a more worldly culture; to have Music and Arts available from around the globe. In response, in the early 1800s, plans were discussed for a grand theater to be built in order to enjoy interna onal talents. Some years later, following varied results with small theatres, the Teatro Nacional finally became a reality and was inaugurated with the opera Faust performed by a troupe from France.

Down through the succeeding years many great acts from Europe, North America, and many other countries around the world have landed here; Operas, Orchestras, and famous Spanish singers such as Julio Iglesias and Rafael have come to Costa Rica. There have been many folklore groups, singers such as Pavaro , and others, like The Pla ers, who have performed in Costa Rica. And later, beginning in the 1990s, even rock stars, including such famous ar sts as Bon Jovi, S ng, INXS, and Depeche Mode, to name but a few, have made appearances here.

It was Aerosmith’s November 10th, 1994, concert, however, that will be forever ingrained into the memories of many Costa Ricans. The concert was a great success and a complete sell-out, but, as the press put it, it would also remain forever a bi er-sweet memory.

Aerosmith was scheduled to play at the Na onal

Stadium and the price of general sea ng was just ¢3000, about US$18.50 at that me. The public was extremely anxious, and the concert promised to make history in this li le country. Though that was achieved, the “fingerprint” le behind was not exactly as expected.

The gates were scheduled to be open at 5:30 p.m. and by three in the a ernoon there was already a line reaching from the stadium all the way into Paseo Colon on the far side of La Sabana. The area surrounding the stadium was like a street market with vendors selling food and souvenirs. The fans were excited and a party atmosphere existed with singing and dancing taking place along the lines. The Mounted Police reported that everyone was behaving. At 6 p.m., however, when the doors to the stadium had s ll not been opened, in their eagerness to enter, the crowd began to slowly crush a number of people against the doors. This resulted in twenty-five persons being injured, and Robinson Gamboa, one of the first to arrive, lay dead.

Aerosmith hit the stage a short while later in full form, rocking the crowd with their hit Eat The Rich, and had no idea of the tragedy that had just occurred outside.

The concert was a fantas c success; though only 12,000 had been expected, sales showed numbers in excess of 23,000 par cipants. Although the band experienced some sound problems, much of the crowd was simply beyond no cing. Aerosmith gave them all they had hoped for; loud music, bright lights, and the five superstar Idols of Rock were just meters away performing with all the an cs and showmanship they are renowned for.

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The success of the actual event would, however, remain shadowed by the tragic death of the young student of the Technological Ins tute and the next day’s headlines in La Nacion would read “Rock Promoter Wanted” as the Ministry of Security had opened a case for Culpable Death against the Argen nian promoter, Willi Bosso.

As one might expect, this event brought an end to what had been a planned series of concerts by premier ar sts from around the globe. It would be nearly ten years before a spectacle of this size would again be brought in.

visits to Costa Rica. Along with feelings of sorrow and regret with which we le San Jose, there is also memory of some of the most enthusias c fans we have ever seen, and the warmth and welcome of all with whom we met.” Signed: Aerosmith.

Sixteen years later, in 2010, Aerosmith eventually returned to Costa Rica for a new concert. This show would be dedicated to Robinson Gamboa, the young man whom they never met, and will likely never forget.

When the group was later advised of the unfortunate incident, they spoke to the family and made public statements to the press.

“Every death is always a tragedy. The death of young Robinson Gamboa outside the stadium where we played in San Jose, Costa Rica, has filled us all with a great sadness (...) Without this accident outside the stadium, the concert on Thursday would have been a triumph for us in which we hope will be the first of many

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Wild Side LXXIII

by Ryan Piercy

Nu y Rodants Commonplace, adaptable, and cute for a rat, squirrels can be found abundantly in all regions and areas of Costa Rica. In fact, squirrels can be such a common sight that most people simply overlook them or give them very li le regard. However if you actually stop to take a look, these animals are really amazing creatures, with a variety that will astound you.

The variety known as Deppe’s squirrel (Sciurus deppei) is found only in the Guanacaste mountains where it is quite common due to the pris ne habitat. Up to 20cm long, they are dark brown with a grayish belly and a bushy grayish tail. The species has not been studied extensively, but is known to be quite ac ve in the early morning and late a ernoons when it feeds on fruits, seeds, fungi, and insects.

Alfaro’s Dwarf, or Pygmy squirrel (Microsciurus alfari) is the smallest of the local lot at just 14cm. Their coat is mostly a dark brown with a slightly reddish tail. This species have low set ears that don’t protrude above the head. They are found on both Pacific and Atlan c slopes, excluding the dry lowlands, in both primary and secondary forests.

Squirrels live in almost every habitat from rainforest to desert and are mainly herbivorous, needing foods rich in protein and carbohydrates because they cannot digest cellulose. Their name comes from La n, but originates from the ancient Greek word meaning “shadow-tailed.”

Their large eyes provide excellent vision and their claws make them agile climbers and gatherers.

Currently there are about 285 living species within 58 genera, making for a wide range of different colors and habits. Costa Rica is home to only five species of Ardillas (also called chizas), but the variety of colors is far greater due to different subspecies of the large Variegated Squirrel (Sciurus variegatoides.). These creatures curiously range from black, to white, or browns. Seven of the fourteen subspecies are found within the borders here, distributed in different areas throughout the country. These diurnal squirrels are mostly arboreal and reach a size up to 28cm and 1.5 pounds. Except for the black variety, they can be dis nguished from other squirrels by black tails frosted with white.

Most similar to the Dwarf is the Montane or Poas squirrel (Syntheosciurus brochus), the only threatened species in the country. Having a very restricted habitat, it is found in just three loca ons: Poas, Tapan , and the Chiriqui Mountains in Western Panama. It is slightly larger than the Dwarf squirrel at 17cm and has unusually protrusive upper incisors and a pointed, narrow snout. They tend to inhabit tree hollows or abandoned woodpecker holes, and forage at all levels of the forest including the ground. They have been known to feed on pollen, nectar, sap, fruit, bark, and insect larvae. Though usually solitary by nature, observa ons show that several males will chase a female for ma ng in the dry season, and will produce two to five young early in the wet season.

Even though you are likely to encounter squirrels wherever you may be travelling, if you pay a en on you will find several varie es are easily observed in the various habitats. And in the case of Deppe’s or the Montane squirrel, however, it will actually require a specific trip to be able to encounter these two rarer breeds.

The next closest in size at 24cm is the Red-tailed Squirrel (Sciurus granatensis) found in Central and South Costa Rica. Also arboreal, it is dark brown with orange underparts and is similarly frosted on its bushy tail. Like its larger cousin it is usually solitary, seen mostly during the mornings and late a ernoons foraging for its meal.

Studies show the majority of its diet consists of just four plant species.

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American Legion Memorial Day Picnic The American Legion Post CR10 based in Escazú is celebra ng Memorial Day on Monday May 27th by holding our 4th annual picnic at Villa Amira in Santa Ana from noon to 5:00 PM. The picnic is a real, old fashioned, authen c picnic just like you remember having back home. There will be grilled half pound hamburgers and extra long hot dogs, along with potato salad and chili. Of course all the toppings and condiments are included all for only ₵7000 per person. There is a cash bar for beverages.

The best part is that your par cipa on enables the Post to support local chari es. The en re profits from last year’s picnic were donated to chari es. Among those were Las Damas Voluntarios of Escazú who we joined hands with to fund scholarships for deserving qualified youngsters whose parents lacked the financial ability to equip them for school. These scholarships included complete uniforms including shoes, school supplies, textbooks, tutoring and use of the computer lab and library. We have also made a pledge to help fund the Cabecar Indigenous tribe bring electricity to one of its schools.

For more informa on and how to purchase ckets go to our website www.amlegioncr10.com or call: 2232-1680 – 8968-6935 - 2249 -0446 – 2225-4239

Memorial Day is a federal holiday in the United States which occurs every year on the final Monday of May. Memorial Day is a day of remembering the men and women who died while serving in the United States Armed Forces. Formerly known as Decora on Day, it originated a er the American Civil War to commemorate the Union and Confederate soldiers who died in the Civil War. By the 20th century Memorial Day had been extended to honor all Americans who have died in all wars. It typically marks the start of the summer vaca on season, while Labor Day marks its end.

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A Day in the Life

by Allen Dickenson

Bits and Pieces I like to read. In fact, I am a compulsive reader – when in the bathroom and out of reaching distance from anything else , I have read the back label of the Comet cleanser can so many mes I almost have it memorized.

It was much to my dismay that I discovered many Ticos aren’t much on reading. I have theories about why, including that it’s not a much valued skill in public schools, but that doesn’t ma er; they don’t. And that’s curious to me, given how much empty me they have standing in lines, etc.

Within any group of people there are only a limited number of faces possible. Take all the features (eyes, nose, mouth, cheeks, ears, etc.) from a small group and mix them thoroughly in a gene pool, and occasionally the same general combina on of features will recur.

That’s why we some mes run across a person we think we recognize, but who turns out to be a total stranger.

That seems to happen more here in Costa Rica than back home, where the popula on of hundreds of millions has been thoroughly mixed with contribu ons of DNA from mul tudes of immigrants from different geographical origins and races. There, only very occasionally, would I run across a person who looked like he was related to someone else I know. A discreet inquiry usually found they weren’t; the two didn’t even know each other. It was just that their similar features were the result the law of random variables asser ng itself.

Here it seems I encounter those kinds of similari es much more frequently; people who look so much like someone I know that they could be a close rela on.

More frequently than logic would expect, they are. I think it must be because modern day Costa Ricans come from a smaller original gene pool of the Spanish and indigenous. Maybe that’s why there are so many pre y women here. Thank you conquistadores!

I, like many expats, take a book with me whenever I think I might have a wait somewhere. I always have one in the car. Kinda bulky, but it’s a lot be er than staring at the ceiling of a bank, for instance, and trying to find something to occupy my mind other than thoughts of rampant inefficiency.

We have a cat. She walked in one day and said, “I live here now. Feed me!” Then promptly had two ki ens.

She’s bi-meow-ible – it doesn’t ma er if I speak to her in English or Spanish, she reacts the same. She generally looks the same as about a thousand other cats I’ve seen

So, it came as a surprise the other day when I caught one of my kids actually reading for entertainment. It wasn’t War and Peace or anything of any consequence, just a small booklet. In Spanish, of course. I wanted to reinforce that behavior, but her reac on to my discovering her told me to be quiet, smile, and go on about my business.

And so I did, but with a secret pleasure. I can only hope that maybe my compulsive reading habit is rubbing off on them a li le.

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hereabouts. Did the conquistadors bring a cat or two with them?

On the subject of animals, my neighbors have a pet chicken. His name is Claudio. He’s a “decora ve” chicken, mostly white with a sprinkling of black feathers.

Combined with his bright red comb and wa les, he’s a very a rac ve bird.

Claudio roams free in the neighborhood. Our paths cross several mes each day, most o en in the morning when I’m standing outside having my morning coffee and watching the world go by. He drops by my garage and cleans it of stray and unwise bugs that have ventured in since the last visit. As he goes around ge ng his breakfast, he happily clucks and talks to me.

Claudio is ge ng fat.

He also wanders in the street out front, some mes crossing the road. Occasionally this leads to his having to dodge passing vehicles. I once saw him trying to outrun a motor scooter, but when he figured out he was losing the race he smartly veered for the side of the road.

Back home I would never think of allowing a free range chicken in my garage. But here, in semi-tropical Costa Rica, where the bugs are plen ful, he’s a welcome neighbor and visitor.

I certainly hope Claudio doesn’t get run over or my neighbors don’t decide to turn him into stew soon.

Both the bugs and I would miss him. (And my cat likes him too.)

scurry up out of one hole and down another.

All I knew about scorpions was from the movie “Lawrence of Arabia” where a person died a horrible and painful death from a single s ng. So, a er a moment’s reflec on, I decided to go to the Emergency Room. It was only about four blocks away, but I thought I should call first and alert them I was coming so they could get the place ready. A er explaining my situa on I asked, “Should I walk, run, or do you need to send an ambulance?” The exasperated answer was, “Walking is fine.”

I gave the keys to my house to a friend, along with a request to bring me a change of clothes, “I don’t know how soon I’ll need them; I may be there a while” I said, as a loop of the movie played in my head. Another friend gave me a ride to the ER and whole way I could feel the venom creeping up the veins in my arm. As I exited the car he asked me if I was going to die? He had seen the movie too.

Wild Side in the September / October 2012, issue of El Residente was about scorpions and reminded me of an encounter I had with one in Florida.

It was the mid-six es and I was working on a car engine which hadn’t run for at least five years. Inside there was a build-up of thick, black “gunk”, the kind that comes from an engine that hasn’t had its oil changed regularly.

I was wearing only a t-shirt and shorts and it wasn’t long before I was covered with the stuff.

As I was moving a part I felt a s ng on my finger. At first I thought I had snagged a metal sliver le over from cas ng. Then I saw a small, one-inch long, scorpion May - June 2013

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When I entered the ER I must have presented a dras c sight to the nurse on duty – here was a man whose arms were covered with some s cky black substance, coming in the door. A er ascertaining my “injury” was to my hand, she shooed me into a janitorial closet, handed a can of Ajax cleanser, and a brush suitable for removing the hair from a horse hide. She instructed me not to come out un l all the grease had been removed up to my elbows.

I had cut myself on some rusty metal.

“Oh, you didn’t need to come in then, that’s all you need.” Further inquiry informed me that Florida scorpions weren’t dangerous and all I would suffer was a li le s nging for an hour or two.

As I was walking out the ER door I was met by my friend arriving with my change of clothes. “Where are you going? You got stung by a scorpion – you’re gonna die!

Didn’t you see Lawrence of Arabia?”

I explained and we headed back to my house where I cleaned up and changed clothes to go meet my date for the evening. When I arrived she took one look at me and said, “What happened to your arms!?”

There are, as we know from that Wild Side, scorpions here in Costa Rica. Like Florida, none are usually lethal (unless you have an allergic reac on to the venom.) But, if you are stung by one, it’s always wise to seek medical a en on. Just make sure you are clean first.

In that small room, with only a 40-wa bulb and a few mops, brooms, and other assorted cleaning supplies for company, I fran cally scrubbed at the s cky mess covering me. All the while Lawrence kept replaying and I could clearly see the legionnaire’s painful death.

I wondered how long I had to live – and if I could get clean before me ran out.

Ajax cleanser is poor at removing black, oil-based gunk from skin, but the brush was very good at removing the underlying skin itself, so a er about thirty painful minutes I emerged from the small room hoping I was clean enough to live.

I wasn’t.

Another fi een minutes and half a pound of flesh later, I exited again only to find there was no nurse in sight. I waited, the me creeping by as my life slowly slipped away. Finally she reappeared: “When was your last tetanus shot?”

As it happened, it had only been three days before, a er El Residente

I have wondered why soccer is so universally popular here in Costa Rica, almost to the exclusion of all other sports. I men oned that to someone recently and they gave me an answer that makes sense; it’s because soccer is not an equipment intensive sport. Even sandlot baseball requires some equipment; a bat and a ball, which must be purchased. In a poorer country, not having to purchase anything is important – and to play soccer, nothing needs to be purchased. I have seen barefoot kids playing the game in the street with a discarded 2-liter coke bo le for a “ball” and two rocks to define the goal.

Obviously, if you grow up with that kind of thing as your only sport, you will embrace it above all others when you mature.

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: humphree@bellsouth.net.

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May - June 2013

17

Legal Update

by Allan Garro N.

Understanding the Tenancy Act can Prevent Headaches In Costa Rica there is a law ruling the rela onships between Landlords and Tenants in two specific situa ons: a) when ren ng dwelling houses, apartments or condos and: b) when ren ng places with commercial, industrial or professional purposes. This Rental Law, known in Spanish as Ley General de Arrendamientos Urbanos y Suburbanos, has been in effect since 1995, replacing a law from the early part of 20th Century. It has a number of different rules for similar situa ons, so knowing the details can be of big help for those expats being on either side of the rela onship –Landlord or Tenant.

In general terms we can men on that the following general rules are applied to all kinds of property leasing contracts: • The contract can be either verbal or wri en. For obvious reasons, a wri en agreement is always be er to clarify the specific obliga ons of each party.

• The law establishes a minimum term of 3 years, meaning a renter who duly accomplishes his obliga ons can legally stay for that minimum period of me, no ma er what the contract says. If the contract has a term beyond three years, the higher term rules.

• Public services and u li es have to be paid by Tenant. The Landlord is responsible to cover the local territorial taxes as well as the Luxury Home Tax, if applicable. Having a rental contract where those services are included on the Rental Payment is also legal.

• If the property tle gets transferred into a new proprietor’s name, the Tenant has the right to stay un l the term of his contract finishes. Evic on can’t be requested based on change of owner.

• Necessary improvements due to the normal use and passage of me are to be covered by the Landlord.

Improvements required due to damage caused, or abuse of the premises, are to be covered by the Tenant.

• Tenants need to ask permission from Landlord in order to make changes to the structure, or perform permanent improvements. Any permanent improvements made by Tenants automa cally become part of the property without right to claim refund.

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• At the end of term, if the Landlords want the Tenants to vacate the property, the Landlord will have to provide a wri en no ce at least 3 months prior to the term expira on. Otherwise the contract gets automa cally renewed for another three years or higher term if agreed on the contract.

• Tenants cannot sub-lease the property or assign the rights of the contract to any third party.

The only excep on is in case of transferring an opera ng business. There is a special procedure named Purchase of Mercan le and Industrial Establishments ruled by ar cle 478 of Code of Commerce. Landlords have to respect the change in this case.

• The Landlord is en tled to request a refundable security deposit from Tenant in order to cover eventual damages or unpaid invoices. When ren ng homes such a deposit is normally equivalent to 1 month’s rent, while commercial rentals have no limit.

• Landlords have the right to perform an external/ internal inspec on of the property once per month.

• Tenants cannot change the originally agreed use of the property. This means a home cannot be turned into a restaurant, and a restaurant cannot be turned into a night club, without further authoriza on.

However, in home rentals, installing a small professional office to provide professional services, or star ng a small cra or domes c business without disturbing others does not breach this rule.

• Tenants can legally pay rent up to 7 days a er the agreed payment date. This means if the payment date is the first of each month, the Tenant can s ll pay legally any me before the eighth day of each month. In case the tenant makes late payments, meaning later than the men oned extension, and such situa on is not corrected immediately by the Landlord, it opens the right for Tenant to con nue paying late.

• When a property is rented to be used as a home, the rental price will automa cally be adjusted fi een percent every year if the contract is made in colons, but without any adjustment if agreed in any other currency. Regarding commercial loca ons the currency and price adjustments can be freely nego ated by the par es.

Regarding places to be rented as homes, the law also creates a difference between what are considered Normal Homes and Social Interest Homes. These la er are those with a value up to $64,000.00 more 18

or less (the amount changes annually). Basically those Tenants ren ng a Social Interest Home can’t be evicted regardless of the agreed term unless the Landlord demonstrates the need to inhabit the place personally, or that a new construc on is necessary. If a Landlord has to begin an Evic on Process for lack of payment, a Tenant can avoid the evic on by paying all delayed rents and legal expenses. Having these two home Categories is the reason why an appraisal performed by an Architect or Engineer is required in order to start a Court Evic on Process, meaning a Landlord will be forced to spend a lot of money to fulfill such a requirement.

When ren ng Condos it is necessary to take into considera on that Tenants needs to acknowledge they have read and will respect the internal by-laws of the project, as well as other disposi ons contained in the Condominium Property Law. When the Home Owners Associa on mee ngs take place, Tenants have the legal right to par cipate and make any sugges ons, but they cannot vote. Only home owners can legally vote and approve any decisions or changes.

Some special situa ons are also ruled by the law. If a landlord decides to build a maximum of two homes or commercial places on the same land where his or her home is located, and such places have a common entrance along with the Landlord’s home, the Landlord is en tled to terminate the contract any me providing 1 month no ce to vacate the property. A er that term, if the Tenant is reluctant to leave the premises, then the Landlord is en tled to request an Administra ve Evic on in front of the Ministry of Security in order to have the Tenant taken out of the property by the local police.

It is necessary to consider that any Evic on Process in Court takes me; meaning an Evic on Lawsuit will take between one and two years in Court. In fact some renters like to rent places paying first month and security deposit, and then stop paying rent un l the tenant knows the official evic on order is signed. At that moment renter just moves out earning a number of rent-free months. One tool that can be used by Landlords suffering through this situa on is to request through the process that the Judge performs a visit in order to make an inventory of all Tenant’s belongings, to be held as guaranty for payment. Most people will not want their big TV confiscated; therefore it may cause them to move earlier.

As men oned above, the law grants a minimum term May - June 2013

of three years no ma er what, except for the cases men oned above. However there are two other excep ons: • Trust contract. If the property to be rented is a trust asset according to a Trust Contract, the person with legal facul es to rent the property will be the Trustee. In this case that the Trustee is only authorized to rent for a maximum term of 1 year, then that term rules. Last year an amendment introduced to the Code of Commerce eliminated the transfer tax exemp on to Trusted Assets therefore making Trust Contracts and transferring the trusted assets into the Trustee’s name is now more expensive and difficult.

• Usufruct right. One property owner can legally transfer the usufruct right of a property into a different person’s name. This is a kind of lien against the property, meaning the usufruct beneficiary is the one en tled to use and enjoy the property as well as rent it if necessary. If the beneficiary of the usufruct right only gets this benefit for less than three years that means the property can’t be rented for any longer me than what remains.

All situa ons other than ren ng Homes or Commercial/ Industrial places have different regula ons. Some situa ons excluded from this Rental Law are as follows: • Hotels, Bed and Breakfasts and Motels • Homes and Premises rented with the purpose of tourism • Spaces rented for vehicle parking • When a home is granted to a person to live without paying rent, or homes granted to employees by the employer • Farms and proper es rented for agricultural purposes For Landlords it is important to be cau ous at the moment of rental. Ge ng references or performing credit reports on Tenants is highly recommended, considering a bad tenant can create big problems, and any evic on process will be both expensive and me consuming. Tenants also need to understand their rights in order not to suffer any abuse from Landlords.

Remember, get it in wri ng!

ALLAN GARRO NAVARRO A orney at Law allan@garrolaw.com www.garrolaw.com 19

A City Rejuvinated

by Richard Ternouth

Avenida Central The Rejuvena on of San Jose-Downtown San Jose This is the third in a series of ar cles focusing on the transforma ons taking place in greater San Jose.

Before It Began Alvaro Rojas, rector of the University of Design (19932012) once stated: “The decline of San José began in the 1960s, with the demoli on of many older buildings.”

He went on to say, “It was one of the bad ideas of progress; developers at that me thought in order to move forward you had to throw away. But now, we have realized the opposite; you must conserve, but they destroyed beau ful spaces to construct ugliness!”

That failed movement resulted in a neglected city core which fostered crumbling buildings, traffic-clogged streets, and high crime rates. By the 1980s the popula on of San José had declined by about 25%.

How it Began While the general public wasn’t paying a en on to the floundering city, some government leaders realized that deser ng San José was not good for the country. To reverse this trend, in August 2005, government officials announced plans to change some bus routes and repave some streets in central San José. These announcements were not just a couple of band-aid remedies to tame the raging beast that was the Capital’s traffic; they were announcing the newest steps of a movement to redefine the city.

The plan, op mis cally called San José Possible, was the visionary dream of Mayor Johnny Araya and a group of architects. The effort had no poli cal bias and was a joint project of government services and the Municipality. Its goal was to protect and enhance the well-being of the city, the country, and the people. The main objec ve of the plan was for San José to again become a place for the people.

A first step was the conversion of fi y-three blocks into well-lighted pedestrian walkways. These would create “mega-blocks” for pedestrians and would lend themselves to housing development, while the skyline would be transformed with mul -use buildings towering over parks and the walkways. San José Possible further El Residente

envisioned the boulevards being lined with benches, informa on booths, trees, flower stands and, adding a touch of technology, internet kiosks.

To assist in accomplishing these ambi ous goals, it was decided that the Municipality of San José would build the pedestrian boulevards, the Na onal Water and Sewer Ins tute (AyA) would improve water, sewage, and drainage systems, the Ministry of Public Works and Transport (MOPT) would improve traffic circula on in the center of San José, and the Na onal Power and Light Company (CNFL) would do its part by moving electrical lines underground.

Present Day Soon a er it began, the San Jose Possible plan was scrapped and replaced with other, similar plans, but not before some of the original ideas became reali es. The most highly visible change was Avenida Central, which is now the largest open air mall in La n America with as many as a million pedestrians a day walking its twelve block stretch. Public safety has been improved by an increase of police personnel, visible on nearly every corner of the boulevards.

Another part of the plan accomplished was the crea on of a Chinatown. That project was opened in 2012, albeit delayed by a flurry of street improvements, but which resulted in much easier traveling into and out of San Jose, especially along Avenidas 8 and 10. Hotel owners and shop owners, as well as restaurants along these routes are talking about not only seeing an increase in tourists in the downtown area, but the return of the Ticos who had once abandoned San Jose.

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Although the traffic situa on has shown improvement, it is s ll strangled by an es mated 33,000 buses that enter San Jose daily. These buses are necessary because the riders make up seventy-five percent of the one million or so persons who commute to work downtown. So, as much as has been done to re-organize public transport and car routes, the traffic conges on can s ll be awful, which discourages people from coming in to enjoy what the city has to offer.

The mixed-use, high-density ver cal developments envisioned are happening in both downtown San Jose and around La Sabana Park, but the dream of offering new condos at a minimum $30,000 to a ract Ticos back into the city is, sadly, a thing of the past.

In addi on to structural improvements, the cultural calendar now has a full schedule almost year round, making the city more a rac ve for residents and tourists. Free cultural and musical events can now be found at different loca ons throughout the core of the city.

In the past, the city has tradi onally been seen as a necessary evil to get to the beaches and volcanoes. But that is changing; there is a long term plan to increase

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tourism in the capital, which is working. According to hoteliers in the city, there has been an increase in the number of room-nights people spend in San Jose.

The Future!

If the visions of people like Johnny Araya and others con nue, then San Jose will become a des na on for both tourists and locals. To make that happen, the government and its tourism marke ng body, ICT, must show the world that San Jose is a revitalized and culture rich city, full of things to do.

The biggest problem needing immediate resolu on is the bus conges on. There are rumors of future plans for banning all buses from the city core and moving their opera ons from downtown terminals to the perimeter, but s ll within walking distance of the center.

They also need to install those informa on kiosks, especially for the tourists.

San Jose is a changing city and if you have not visited downtown lately, we encourage you to come see the changes; you may be very pleasantly surprised!

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Dollars & $ense

by Alan Weeks

Let’s Stop Fooling Ourselves: Americans Can’t Afford the Future (1) As Yogi Berra once said, “It’s hard to make predic ons, especially about the future.” However, it is important to give it a try.

The American spirit has been rooted in the belief of a be er tomorrow. Much of the country’s success was due to genera ons of men and women who toiled, through both good and bad mes, to make that dream a reality. However, over the past few decades the hope for a be er tomorrow seems to have become an expecta on. Or perhaps a perceived en tlement is more accurate; it has become widely assumed that the future would be more prosperous than today, irrespec ve of the actual steps being taken now.

For many decades, based on the “tailwinds” of cheap energy, globaliza on, technical innova on, easy credit, and the financializa on of the U.S. economy, it seemed like this assump on was a sure bet. However, those wonderful “tailwinds” are now “spu ering out.”

The forces of resource scarcity needed to supply an expanding global popula on, debt satura on, and price infla on, will impact our way of life much more drama cally in the future than has been experienced to date.

Demographics show that the number of Americans aged 65 years and older should more than double in the next forty years. They also show that the remaining propor on of ac ve workers is shrinking. Clearly, this smaller group of working-age Americans will be unable to support this tsunami of under-funded seniors.

While these demographic projec ons clearly illustrate that the current set-up of Social Security and Medicare is unsustainable, they are being ignored by the poli cians and the mainstream media. I believe that unless steps are taken soon, the na on is headed for big trouble. (2) It seems inevitable that those Americans (Canadians, and others) who chose the luxury of abandoning savings and prudence for consumerism and favoured credit financing, are on a “collision course with reality.”

Like the grasshoppers in Aesop’s fable “they have par ed away the fair seasons and winter is now on the way, for which they are woefully unprepared.”

The prudent thing to do right now is to honestly assess our own level of readiness for long-term re rement.

Only then can we decide how best to use the resources and me le , while the system is s ll func oning. Once we have done that evalua on, steps that match our priori es to our needs can be taken to make us be er prepared.

Unfortunately, you likely won’t find much discussion El Residente

of this in the mainstream media as it appears to have abandoned inves ga ve journalism for fear of offending viewers and/or sponsors. Gone are the days when the media held up the mirror of truth to power; instead, the media now seems to be running superficial “puff pieces” that are concluded with pla tudes. Further, our poli cians insist on con nuing to do more of the same, no ma er how unsustainable, determined to not touch any poli cal third rails for fear of not pleasing their electoral base and/or donors. Their message, however baseless, is quite clear: The future will be be er as soon as economic growth returns, or oil prices come down, or whatever else the magic bullet du jour is called.

Therefore, it’s up to the concerned and cri cal-thinking among us to look at the hard data underlying the headlines and construct what we can best surmise to be true.

The sad truth appears to be that three adult genera ons in the U.S. are being squeezed financially and that their burdens are likely to keep increasing. This squeeze is making it harder to create value, save capital, and pursue happiness than any me since WWII. At that point the U.S. was a creditor na on with an economy exploding into dominance on the world stage. Now, however, the U.S. is the largest debtor na on and its economy is increasingly under siege across a number of fronts.

“Therefore, to support the status quo is a decision to sleepwalk headlong into the constraints hurtling towards us. Thus, we need to stop trying to fool ourselves and ask: “What should we be doing differently?”

Let’s address this a er reviewing the numbers.

Seniors Woefully Unprepared for Re rement In the late 1970s, the 401K emerged as a new re rement vehicle. Among its touted benefits was the ability of the individual to save as much as was thought prudent for his/her financial future. Companies loved the new private savings pension plans because it was a way of pu ng aside mandatory amounts for dedicatedcontribu on pension plans for their workers. For a long me, this was thought to be a big step forward.

Three decades later we are realizing that this shi to voluntary private savings pension plans was a grand scheme with no assurances. Corpora ons benefited as they could redeploy capital to expansion or bo om line profits. But employees? The data seems to show that the voluntary plans did not take human nature into account; the fact that just because people have the op on to save money for later use doesn’t mean that they actually will. And, not every American worker (by far) was offered a 401K or similar re rement plan, and of those workers that were, 21% chose not to par cipate.

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As a result, almost 25% of those aged 45 and over have no re rement savings.

It is also reported that almost half of American adults of all ages aren’t saving anything for re rement.(3) •

•

33% of re red households are en rely dependent on Social Security income which, even today, is hard to live on.

34% of older Americans now depend on credit cards to pay for basic living expenses such as home payments, groceries, and u li es.(3)

Regarding the future of Medicare, the Wall Street Journal just reported that the current es mate of Medicare’s unfunded liability now tops $42 Trillion.

Such a mind-boggling gap makes it highly likely that current re rees will not receive all of the en tlements they are being promised.

In spite of these realis c projec ons, far too many baby boomers entering re rement seem to be in denial. Many plan to work longer before re ring, with a growing number planning to work forever. The data shows, however, that declining health actually gives many older Americans no choice but to leave the work force eventually, whether they want to or not. Years of surveys by the Employment Benefit Research Ins tute also show that fully half of current re rees had to leave the work force sooner than desired due to health problems, disability, or layoffs.

Adding to this is the impact of the Federal Reserve’s prolonged 0% interest rate policy, which makes it extremely hard for re rees with fixed-income investments to generate a meaningful income.

Taxes and Infla on Are Sucking Produc ve Workers Dry To paraphrase from another fable, U.S. policy is doing its best to kill the goose that lays the golden egg.

Sandwiched between re rees and the younger millennia genera on, is the current produc ve peak working class. As the government, mired in debt and budget deficits, grows more desperate to boost tax receipts and keep interest rates down on its debt, it increasingly both siphons off capital and steals purchasing power from those genera ng income. Obviously, this cannot con nue indefinitely.

Personal Income and the Decline of the American Saver Pu ng all of this together gives us a clearer picture of the current state of the average North American.

One chart (1) clearly shows that consump on has been supported by rising transfer receipts (welfare) and a drop in the personal savings rate, which is now at the lowest level since just prior to the last recession; May - June 2013

consumers are already struggling to maintain their current standard of living, and all indica ons are that they are going to lose this ba le.

Consumer Spending Drought: 16 Signs That the Middle Class Is Running out of Money (4) Is discre onary spending rapidly becoming a thing of the past for most American families? Right now there are a lot of signs that we are on the verge of a nightmarish consumer spending drought. Incomes are down, taxes are up, and many large retail chains are struggling because of the lack of customers. Because many of these retail chain stores, even long-established ones, are no longer profitable, it is forecast that thousands of them will be closed this year. Obviously, every store that is closed will throw many more people out of work.

Furthermore, it is reported that nearly a quarter of all Americans have more credit card debt than money in the bank.

Considering the fact that consumer spending is such a large percentage of the U.S. economy, and that consumers don’t have much money to spend, there is never going to be a sustained economic recovery.

In fact, this debt-fuelled bubble of false hope being experienced right now is probably as good as things are going to get. And, if you think that consumer spending is bad now, just wait un l you see what happens over the next several years.

The fact is that real, middle-class wages have been falling in the U.S. for decades. Meanwhile, the cost of living has soared, especially for food and energy, and healthcare costs have risen because the FED’s liquidity has driven up the prices of essen als.

So today’s worker is stuck with paying for substan ally costlier goods with a materially devalued income; that is, if they are fortunate enough to have an income.

Unemployment in the U.S. is s ll painfully high. Even the recently-celebrated declines are simply due to a jump in part me jobs as workers take on mul ple jobs to simply get by. Full- me jobs are actually on the decline.

At the same me, in pursuit of greater efficiencies, U.S. corpora ons are inves ng more than ever in robo cs and intelligent machines. The result is that many of the less-skilled jobs lost during the Recession are simply not coming back.

Workers have been whipsawed over the past decade by several asset bubbles blown by Central Banks, which have knee-capped their efforts to amass wealth. Moreover, while the S&P 500 stock index has just returned to the price territory last seen in 2007, one must be aware that this valua on is now over 50% higher than the longterm norm. And remember, during the major Recession 23

in the early 1980s, market valua on plunged to about 55% below the long-term norm. Be careful out there!

In addi on, housing prices are only slowly beginning to rise again in the a ermath of the vicious correc on begun in 2007. Sadly, it seems that new bubbles in stocks and bonds are being inflated once again. This is sure to take another large swath of (paper) wealth from workers 401Ks when they burst.

“Millennials” at Risk of Becoming a Lost Genera on Pity the recent college graduate! The cost of higher educa on has been far outstripping infla on for years.

The fact that most colleges have no exposure to their students’ ability to repay their loans has actually provided an incen ve to con nue to raise tui on and other fees as high as the market will bear. As a consequence, the average graduate has a student loan balance of over $27,000 (not including credit-card or other types of debt that many students also have.) This puts them into a financial hole early in their adult lives which delays their ability to create families, buy a first home, or start businesses.

This challenge to capital forma on is compounded by the frighteningly high unemployment rate for those under thirty. Not only are companies s ll hiring conserva vely, but given the factors men oned above, younger workers find themselves compe ng with older ones for entry-level posi ons.

It’s no wonder there is a growing realiza on that going deep into debt for a college diploma isn’t a smart tradeoff. And, along with the joys of debt-serfdom, younger workers are star ng to realize they can no longer count on many things, including many of those elements of the American promise that we used to take for granted.

Therefore, it should come as no surprise that millions of young workers may be giving up on their search for work. The danger for this genera on is that the longer they go without work experience, the less appealing they become to employers. Tomorrow’s new college graduates will be hired for entry-level posi ons, leaving many of today’s unskilled seekers unemployable – a lost genera on.

Let’s Stop Fooling Ourselves In summary, if we’re being honest with ourselves, the current narra ve of recovery being pushed by poli cians, Wall Street, and the mainstream media, doesn’t make any sense. The American experience of rising standards of living and general prosperity has always rested upon a deep and healthy middle class which, by almost any measure, is steadily declining.

By funnelling endless amounts of free money to the biggest banks, the FED has driven the stock market El Residente

higher and made the banks and the small, wealthy minority of the country temporarily be er off. The FED seems to believe that a big and profitable banking system coupled to rising stock prices will somehow generate the necessary confidence within the middle class required for them to once again go on a borrowing binge. Because of this long-held policy, the U.S economy is now based on credit and borrowing, not earnings and savings. The problem is that, regardless of all the manufactured government sta s cs and grossly overvalued stock prices, the average family has far less earning power this year than last, and, quite ra onally, many are realizing that it’s just not appropriate to take on more debt.

More profoundly, the big picture numbers just don’t add up. (5) Already the U.S. total public debt (federal, state, local) is about $16.7 trillion or 107% of GDP. In addi on to current debt levels, far too many states and municipali es are saddled with grossly underfunded public pension promises, which now seem to be impossible to keep.

The Present Value of the Deficits and Unfunded Liabili es is calculated to be $62 Trillion, or about 400% of GDP. In fact the GAO, the federal government’s auditor, has concluded that the U.S. is on a fiscally unsustainable path and that poli cians and the electorate have been unwilling to change this path.

Furthermore, a report just presented in a Senate commi ee showed that the current U.S. Debt per person is already 35% higher than that of the Greeks.

There is an urgent need to seriously face the fact that governments cannot make good on their promises, let alone entertain making them larger. Yet, here we are with every outlet of the current power structure vigorously promo ng that “all is well” while minimizing, or completely ignoring, those who seek to open a dialog about the wisdom, or lack thereof, of driving asset prices higher and suppor ng historically ruinous levels of deficit spending by “prin ng money out of thin air.”

Redefining Prosperity There’s no doubt that simply con nuing with the status quo is a vote for digging ourselves deeper into a hole as the constraints of the future arrive. Behavior change and courage will be necessary in order to improve our chances - as dire as the trends appear, there is much that can be done to ameliorate their impact.

At the core of the needed changes is a redefini on of prosperity. In modern society, it has largely come to be defined by material possessions, usually assuming that the more (and the more expensive something is) the be er.

24

We will be much be er off by re-defining prosperity to focus on things which were once valued much higher in our culture: our health (both physical and emo onal), our purpose, our ability to meet our needs sustainably, our rela onships and, our level of happiness.

It is also important to realize that the era of cheap energy and cheap credit are over. We have lived a much more isolated, materialis c life, which might have been freeing in ways, but we need to begin to realize that many of those values of the past are worth returning to in the future.

There are many prudent behaviors, some of which are listed below, that you may find worth adop ng.

Live below your means – Rather than pride yourself on what you can purchase, pride yourself on what you don’t need. Learn the peace of mind that comes from knowing you can afford the things you do buy, and the confidence that comes from growing your savings.

Get and stay fit – The benefits of good health on quality of life, longevity, and wealth are just too numerous to ignore.

Pursue happiness – Learn to simplify your life and enjoy the pleasure coming from rela onships, from having purpose, from crea ng, and having new experiences.

Buy quality and maintain it – When you do purchase something, buy for u lity and longevity. It is o en worthwhile to pay a small premium to get what will meet your needs best. And then, take good care of it to ensure it will last for a long me.

Enhance your income – Avoid being just a wage slave all your life. Cul vate and grow your nest-egg, including through other sources, so that you won’t be vulnerable to a sudden loss of employment.

Cul vate resiliency – Invest in expanding your skills and ac vi es. These are solid investments no ma er which way the economy turns.

Simplify, learn that less is more. -- This is a good philosophy to live by. In addi on to having fewer things to deal with, it reduces the number to pay for and be taxed on. Both of which leave you with more money.

Appren ce/mentor – Learn how to do important tasks yourself instead of being dependent on paying someone else. If you have exper se, pass it on to others around you. In these ways you will create a solid network as well as adding resiliency within your own community.

Shop & invest locally – This will have a big impact at the local level and keep capital inside your community May - June 2013

to strengthen it.

Consider mul -genera onal living – The economics of the future may force this on many, and that may not be a bad thing. It is be er to adopt this lifestyle by your own choice, on your own terms, if possible.

We have moved far away from this model of living, at great cost, both money-wise and socially. Knowledge transfer, chore sharing, child/elder care, emo onal support, cost reduc on, and pooled purchasing power are many of the advantages to co-habitua ng with close family or friends.

Use your produc ve output as an alterna ve currency – Both goods and services may be acquired without $ if you trade your support or skills. Learn to ask, What can I trade? before asking, how much does it cost?

You may be able to save money while increasing your perceived value to those around you.

Require awareness and accountability for the future – Hold your elected officials to the same standards you hold yourself, and vote accordingly. Par cipate in the democra c process. It may not work as well or as fast as we want, but boyco ng will only guarantee disappointment. In a nutshell, hope for the best but don’t count on miracles.

Trust yourself – Always rely on your own good sense and intui on about what is smart for you and your family in your unique situa on. Consult with those who have insight and experience to share who can help you make the most informed choices possible.

But remember that your present and future are your own responsibility. Never fully relinquish this power to anyone else – not the government, not to a family member, not to a professional adviser, not even to “the experts.” Always, always trust yourself first and foremost.

A good start to what we need, as a country and a global community, is to accept the reality around us and get on with how we want to deal with it.

References: 1.

Let’s Stop Fooling Ourselves…, Peak Prosperity (peakprosperity.com) by Adam Taggart, March 12, 2013 2. Barron’s, Gene Epstein, March 15, 2013 3. How Much Have Americans Saved for Re rement, Dept. Of Numbers, March 21, 2011 4. Consumer Spending Drought: 16 Signs That the Middle Class Is Running Out Of Money, Blaze, Feb. 28, 2013 5. Wikipedia, March 2013 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: imc.weeks@yahoo.ca 25

Exchange rate of the Costa Rican ¢ to the US Dollar October November December January February March

503.24 503.17 514.32 507.00 506.84 504.65

Basic Interest Rate

October November December January February March

10.25 % 9.50 % 9.20 % 8.30 % 7.35 % 6.95 %

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

1.49920 1.01740 1.28190 0.94920 24.40770 5.81620 5.84720 6.52810 19.60500 1.51980 4.38130 1,825.00000 12.33120 40.86000 2.02170 7.77850 1,111.35000 94.22000 6.29210 7.76360 29.82500 7.00970 472.15000 31.05640 2.59000 3.25980 1.04190 6.21020

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

El Residente

0.20370 % 0.28260 % 0.44490 % 0.73150 % 3.25 %

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Holidays of Costa Rica Wednesday, May 1st Labor Day - Na onal holiday ARCR Closed Thursday, July 25th Annexa on of Guanacaste - Na onal holiday ARCR Closed A Touch of Wisdom “Pain ngs and ďŹ gh ngs are best seen at a distance.â€?

- Ben Franklin (1706-1790) “The best cure for a short temper is a long walk.�

- unknown “Violence begets violence.�

- unknown A Bit of Fun...

If you jogged backward ... would you gain weight?

Did you hear about the new Chinese Cookbook being sold only at pet stores? “101 Ways to Wok Your Dog�

If you can’t change your mind, are you sure you still have one?

Did you ever walk into a room and and forget why you walked in? that’s how dogs spend their lives.

I’m not into working out.

My philosophy: No pain. No pain.

I only use deodorant under one AtlĂĄntica arm, so I know what I would Medical have smelled of.

Supply Did you hear about the fool who walked around the world?

He drowned.

May - June 2013

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El Residente

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