November - December 2012 1

El Residente

ARCR Administracion S.A.Apdo. 1191-1007 Centro Colon

San José, Costa Rica(www.arcr.net)

A Publica�on of ARCR Administracion S.A. November/December2012

El Residente 2

Contents:

President’s Message................. 3

Wild Side of Costa Rica............ 4- Ryan Piercy

Legal Update, Evic�on............ 7- Allan Garro N.

Learning the Language............. 8- Chris Howard

The New Currency................... 9

Discount Program News.......... 11

Club Corner.............................. 12

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

ARCR Update........................... 18

Novel News............................. 20

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

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

The last edi�on of this year also brings us the last new currency note for Costa Rica, and just in �me for Christ-mas shopping. We hope you have enjoyed this year’s focus, and we are now working on changes for the new year.

Which brings me to another topic, the El Residente is now holding its first ever wri�ng contest, and there will be a cash prize to go with it. Details can be found in this issue’s ARCR Update, and we already have received a number of entries, so don’t delay. Next years readers should be able to enjoy the fruits of their labors.

Also of par�cular interest to some will be the immigra-�on fines and new traffic fines, so be aware out there! I just had the (mis)fortune of experiencing this service firsthand. Hope it will be the last.

In closing, the writers, staff & Board of the ARCR, as well as myself, would like to wish you all a very happy and healthy Holiday Season, no ma�er where your travels may take you.

Ryan Piercy

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.

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.

Editor’s Note

Contact Informa�on:

Published by: ARCR Administra�onEmail: info@arcr.net www.arcr.netEd�tor in Chief: Ryan PiercyAdver�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

November - December 2012 3

President’s Messageby Mel Goldberg

The Final Word

My term of President of our associa�on has come to an end and this will be my last le�er as a representa�ve of the Board of Directors. I sincerely hope that you have benefi�ed from some of the things I have men�oned. I ask you all to welcome my successor, Terry Wise, and wish him the best of luck in the coming term.

Here’s a �p: If you rent a condo, apartment, or house, make sure that you know the complete and correct account numbers for the u�lity services – and check them against your bills. Recently I thought my electrical bills had seemed higher than usual. When I looked into it, I discovered was that I had been paying someone else’s bill and they were paying mine, which was much lower.

Some members may not know that ARCR offers an extensive discount program. There are over 140 sponsors in categories ranging from Accommoda�ons to Pet Supplies to Professional Services listed in our new directory, which is available for the asking. But a be�er way to find all the offers, changes, and recent addi�ons, is to check the ARCR website (www.arcr.net) Look down the le� side of the page for “Member Discounts” and click on it.

Speaking of discounts, you may be surprised to learn that a great number of Costa Rican businesses will give a discount if you ask for it and have the proper iden�fica�on. Some give discounts to all ARCR members, others ask to see your “Cuidadano de Oro” (Gold Card) or a Cedula, which shows you are over 65. What advantages do those documents get you? Well, an example is that I had to have fingerprints taken last month. When I showed them my Cedula I was moved to the head of the line and the whole process took about 30 minutes vs. the normal 3-5 hours.

A�er reading a Le�er to the Editor from the U.S. Embassy in the Tico Times a few weeks ago, I was confused. The le�er said that persons needing informa�on or help with Social Security did not need an appointment. When I checked with the Embassy they clarified the statement by saying that, if the issue is an emergency, they would seen without an appointment. I hope that clears things up for others who were as confused as I.

Several months ago I met a Tico physician who is a U.S. Military veteran. He told me he had received several le�ers, which he thought were from the American Legion, solici�ng dona�ons. I have belonged to the Legion seven years and have never received such a le�er. When I checked into it I discovered that the le�ers were from another group, the “Disabled Veterans Na�onal Founda�on” which has raised over fi�y million dollars using direct mail.

This reminds me of a solicita�on I once received some years ago. When I checked with the group to which the dona�ons were supposedly being made, I discovered that they were guaranteed at least 10% of what was collected; the “solicitors” got the other 90%. The lesson here is that one needs to be careful when they are approached for dona�ons that do not come directly from the organiza�on for whom the plea is being made.

The Costa Rica Marine Corps League has just received a dona�on of property. It is to be sold and the proceeds will be used for con�nued charitable ac�vi�es of the League. These include an orphanage with ten children and a home for 42 foster children. If anyone would like to make any type of contribu�on to this home, contact me or the Marine Corps League.

All members should be aware that if they receive a check for a large amount, they may have difficul�es deposi�ng it in a Costa Rican bank account. About a year ago a Tica wife of a U.S. Military veteran applied for her deceased husband’s pension. She recently received a U.S. Treasury check for over $10,000. When she tried to deposit it in her local account the bank would not accept it; they were concerned it was drug money. She is currently trying to resolve the situa�on.

I apologize to those who may have tried to reach me at the phone number published in the last issue; the correct number is 8870-6756. Please feel free to call me if I can be of assistance.

Also, some members who have been trying to contact Polini for the discount have not received a reply to their email, so be�er to call them, they have three people who can speak English. Telephone 2223-4333 or 2223-4155.

In closing, on behalf the en�re Board of Directors for your associa�on, I want wish you all a Happy Thanksgiving, a very Merry Christmas / Chanukah, and a healthy New Year.

Cover: Blue Morpho Bu�erfly (Morpho peleides limpida)

The spectacularly colored Blue morpho can be found from Mexico to Venezuela, but is especially plen�ful here in Costa Rica. The structure of their wings causes them to sparkle cobalt blue in the sunlight, though they have no pigment, and can be seen from 1/2 kilometer distance. The underside consists of various designs of brown incorpora�ng several black circles or “eyes” and their en�re life cycle is a mere 115 days, of which just 21 are spent as a bu�erfly. They are large amongst their cousins, measuring between 64 and 78 mm, and are truly jewels of the rainforest.

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Wild Side LXXRyan Piercy

A Cry in the Dark

While many creatures are popular, and mul�tudes more are fascina�ng, there are far fewer that have achieved legendary status. The Whip-poor-will is one such creature, a member of the Nightjar family (Caprimulgidae) which has achieved that status. Difficult to spot, the Whip-poor-will is far easier to encounter in the night by their unique call, as are all their fellow nightjars.

Nightjars are a mid-sized nocturnal bird, some�mes called goatsuckers from a mistaken belief they actually suck the milk from goats. Costa Rica is home to ten of the sixty-seven species in this family, including the Whip-or-wills and Chuck-will’s-widow, who are rare winter visitors.

Most of the local nightjars average about 8-12” in length, and perch on the ground, usually in leaf-li�ered areas, where they are extremely difficult to detect; their plumage, a blend of browns, gray, black, and buff, gives them an incredibly good natural camouflage. They most o�en inhabit woodlands and open country, and hunt at night for their feast of insects and moths.

Of the species here, an encounter with a Common Pauraque is most likely, due to their abundance countrywide at al�tudes up to 1700 meters. They are amongst the larger of the species at 11” and 56 grams. During the day they will rest in shady ground, and at night they hunt insects, making short flights in a circular range. Their color is gray-brown or tawny vermiculated, with black streaks, and white on the throat, tail and wing�ps.

Also common, but in more specific ranges, are three

nighthawks: the Short-tailed, Common, and the Lesser. Each of these smaller cousins have chevron-type pa�erns; the Short-tailed a brownish-black, while the other two are white-black. Nighthawks are more diurnal and are o�en ac�ve before nigh�all. They fly con�nuously as they scoop up insects, some making constant loud calls as they circle around. Some species have been named for their specific call.

The same thing can be said for the Eastern Whip-poor-will, with its very dis�nc�ve call, and the very similar Chuck-will’s-widow, whose call is similar but lower and slower. These two are difficult to tell from one another, and even differ only slightly from the Pauraque as they have no white on the wings. The Chuck-will’s-widow are uncommon migrant visitors in the winter months and the most difficult to encounter. Of all the nightjars, and in fact many birds altogether, the Whip-poor-will is the most literate, though I don’t mean it can read.

By literate I mean that the Whip-poor-will’s call has become symbolic of rural America and has been featured in many stories and poems. H.P. Lovecra�’s The Dunwich Horror, and The Legend of Sleepy Hollow by W. Irving are two such stories. The American Indians have a belief that their call is an omen of death. Locally, however, there is no similar belief as the Costa Rican Whip-poor-will and its migrant cousin remain very silent within these borders. So locals will have to be content with the more than fi�y songs that have been wri�en about, or include in the lyrics, the words Whip-poor-will.

“The roses have faded, there’s frost at my door / The birds in the morning don’t sing anymore.The grass in the valley is star�ng to die, and out in the darkness the whippoorwills cry.”

November - December 2012 5

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November - December 2012 7

by Allan Garro N.

Evic�ons without Court Orders are Possible.

The term Evic�on can be defined as the ac�on of expelling a person from land, a building, a house, etc., by legal process as well as the ac�on of recovering a property by virtue of superior legal �tle. This word immediately brings to mind the necessity of a legal process in Court to get a decree permi�ng the evic�on. The most common examples of evic�ons in Costa Rica are for tenants who get expelled for nonpayment of rent, or when, a�er a long dispute of a land �tle, a Judge determines the land must be given back to the legi�mate proprietor who does not have possession.

The common denominator in both examples is the existence of a judicial process. The ques�on that comes to mind is: Are there any evic�ons that can be performed without a Court process? The answer is YES. They are called Administra�ve Evic�ons and are performed by the Evic�ons Department of the Ministry of Security. On August 31st, 2012 a new set of rules on how to apply and handle these procedures were published in the official Gaze�e, supposedly to make the rules simpler and to expedite processes submi�ed a�er that date.

Here are some examples of where an Administra�ve Evic�on can be requested:

• When a person finds that someone his invading his or her property. This also applies when the property invasion occurred within the last 2 weeks.

• In case of occupa�on by mere tolerance. This is the case when a person lends another person a house to live without paying rent.

• Houses and premises rented to tourists for short periods of �me or seasons. Such places need to be classified as being of touris�c interest by ICT.

• The rent of parking spaces for vehicles. • The rent of adver�sing space. • Places granted to employees during a labor

rela�onship. Some�mes farm workers are supplied with a place to live while they work for the employer. The same is true of Condo Projects with guards or administrators. Once the business rela�onship ends they are supposed to leave the premises.

• When a person builds a maximum of two

apartments or premises that have a common entrance with the owner’s house on the same property where he or she lives, the minimum 3 year rental term does not apply. The proprietor can terminate the rela�onship by providing 1 months’ no�ce to vacate the rented premises.

• On a Trust Contract where the Trustee is required to grant the property to a person different than the one having current possession. This is a very common scenario in leases where the Debtor agrees to place the property in a Guaranty Trust where in case of default the property goes to auc�on.

When the above condi�ons are met then an administra�ve Evic�on can be requested from the Evic�ons Department of the Ministry of Security. It is necessary to file a request describing the facts clearly, offering the necessary proof and showing that the claim is legi�mate, for example by presen�ng a Registry Cer�fica�on of the property that shows that the pe��oner is the registered proprietor. Once the pe��on has been submi�ed, the department will perform a preliminary evalua�on of the case, and if they agree with the proof of the claimant then an evic�on order is prepared to no�fy the other party who is currently in possession of the property.

Once the respondent is no�fied of the evic�on order, they have 3 days to appeal by presen�ng valid proof to refute the applicant’s request. If this no�fica�on is not challenged within three days, the evic�on will be executed immediately. If the order is challenged, but the submi�ed proof is not valid, then the objec�on will be dismissed and the evic�on will be executed. Only when valid evidence is presented will the evic�on order be revoked and the Ministry of Security will refer par�es to li�ga�on in a Court of Law.

Even though the newly published rules establish an expedited process, the reality is that it will usually take a few weeks or months, depending on the case. However, an administra�ve evic�on will s�ll take much less �me than a judicial process. The most important thing is to make sure the pe��on is eligible for this procedure rather than going through a judicial process.

ALLAN GARRO N. A�orney at Lawallan@garrolaw.comwww.garrolaw.com

Legal Update

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Learning the Languageby Chris Howard

... Except in an Excep�on...

In Spanish masculine nouns use “el” and “los” well feminine nouns use “la” and “las” normally. However some Feminine Nouns require the definite ar�cle “el” in the singular and “las” in the plural. The subs�tu�on of “el” for “la” takes place only when it comes immediately before a singular noun that begins with a stressed “a-”or “ha-”.

El acta/las actas – minutes of a mee�ng El agua/las aguas – water(s) El águila/las águilas – eagle(s) El ala/las alas – wing(s) or the brim(s) of a hat El alba/las albas – dawn(s) El alma/las almas – soul(s), spirit(s) El alza/las alzas – a rise (prices, etc.) El ancla/las anclas – anchor(s) El arca/las arcas (the ark) El área/las áreas – area(s) El arma/las armas – arm (guns, etc.) El arpa/las arpas – harp(s) El asa/las asas – handle(s) El asma (asthma) El aspa/las aspas – blade(s) of a windmill or blade(s) of a propeller El asta/las astas – flagstaff or mast El aula/las aulas – classroom(s) El haba/las habas – lima bean(s) El hacha/las hachas – axe(s) El hada/las Hadas – fairy(s) El hambre (hunger) El hampa/las hampas – underworld (crime) El haya/Las hayas – beech tree(s)

If they are modified by adjec�ves that follow the noun, the regular rules apply to the adjec�ves:- el agua purificada (purified water)

If a word intervenes between the definite ar�cle and the noun, la is used:- la pura agua (pure water)

Tiquismos (Costa Rican expressions) of the week:Echar al agua – To tell on someone. The verbs delatar, soplar or cantar are also used.

November - December 2012 9

Take Note of the New Currency50000 Colones

The primary image on the new purple note is the visage of Ricardo Jiménez Oreamuno, who was three �mes President of the Republic (1910 to 1914, 1924 to 1928, and 1932 to 1936.)

Ricardo Jiménez Oreamuno was born February 6, 1859, to his mother Esmeralda Oreamuno Gu�érrez, and father, two-�me president of Costa Rica, Jesús María Ciriaco Jiménez Zamora (1863 to 1866, and 1868 to 1870.) He later graduated from the University of Santo Tomás and became one of the most well known lawyers in Costa Rican history.

A typical Costa Rican liberal, he did not want his homeland to be an all-powerful State and fought to maintain civil liber�es. He believed in law and educa�on, always defended the persecuted, and held the thesis of a respec�ul separa�on between Church and State. As well as being elected as President of the Republic, he also held the two other highest public offices in the government: President of the Cons�tu�onal Congress, and President of the Supreme Court.

Shortly a�er assuming power in 1910, the province of Cartago was hit by a powerful earthquake which destroyed most of the city and killed hundreds. He was instrumental in the city’s rebuilding. Among his many accomplishments are encouraging the construc�on of public buildings, highways, bridges, pipes, and the pier at Puntarenas. Another notable aspect of his first term was the consolida�on of the country’s external debt, a great part of which was owed to France.

During his second term in office he created the Na�onal Insurance Bank (now known as INS), the School of Agriculture, and founded the Ministry of Health. He also began the electrifica�on of the Pacific railway system. A�er his second term he stepped away from the poli�cal scene for four years.

He was again elected President in 1932. During this last term in office he concentrated on the country’s infrastructure and educa�onal system. He built several large buildings for school housing, improved and built new roads throughout the country, and constructed an aqueduct system that started in the central valley and flowed into the Pacific Ocean

Shortly before dying he asked to be buried without official pomp and with absolute simplicity. He said before he died: “When my life ends I do not desire honors over my body; I do not want speeches over my tomb; and instead of the notes of lament of the Fatherland, I prefer the sound of the generous and good land that I both loved and admired, falling on my remains, giving me asylum and eternal oblivion”.

He passed in San José on the 4th of January 1945, at 86 years of age. Ricardo Jiménez Oreamuno was declared Meritorious of the Na�on in 1942. He was essen�al to Costa Rican history; his thumb print is profound and his talent and extremely powerful personality will exceed the passage of all �me.

Also featured on the bill are images of the Cloud Forest, Blue Morpho Bu�erfly, Parasol Mushroom, and the Bromeliad.

Guide: Osvaldo Valerín Ramírez.

Characteris�cs of Costa Rican Fi�y Mil Bill:

Size: 160 x 67 mmSubstrate: 100% co�on fiber paperPredominant Color: PurpleMo�f: The Supreme CourtPersonage: Ricardo Jiménez Oreamuno (1859- 1945)Ecosystem: Cloud ForestFeatured Species: Morpho Bu�erfly Parasol Mushroom Bromeliad

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November - December 2012 11

Discount Program Newsby ARCR

Some Other Discounts

Here are some more of the discount offers that members can find on discounts.arcrmembers.net

Automotive/Autos: A/C AutomotrizPurdy Motor Paseo Colon 100SCheck/ repairs air conditioningTel. 2222-6581Disc. 10% cash

Car-Doc1) La Uruca, 100 South of the

Sava Dealer Tel. 2256-00002) Curridabat, 450 North of the

Ford Dealer Tel. 2271-4000Auto mechanics, diagnostic,Repairs, emissions, advancedDisc. 10% cash 5% c.card Beauty Care/Belleza: Bel Amour Salon50m South of ARCRmanrivarrs@hotmail.comTel. 8890-1490 or 8579-9947Disc. 15% cash

Centro Belleza RebecaMall Real CariariTel. 2293-5611Disc. 10% Creativa Studio SalonBoulevard, RohrmoserJennyra31@yahoo.comTel. 8738-2157Disc. 15%

Peluqueria Hector SanchezRohrmoser, in front of Plaza Mayor, casa blancabellezahecsa@gmail.comTel. 2290-0023Disc. 15% cash 5% c.card

Car Rental/Alquiler de Autos: Alamo Rent-a-carwww.alamocostarica.comalamocostarica@grupoanc.comDisc. 20% code arcr1) Main Office, Ave 18,

C 11 y 13 Tel. 2233-77332) Paseo Colón Tel. 2221-

47003) Aurola Holiday Inn

Tel. 2233-69574) International Airport

Tel. 2441-12605) Alajuela Tel. 2443-29016) Liberia Tel. 2668-11117) Tamarindo Beach

Tel. 2653-07278) La Fortuna de San Carlos

Tel. 2479-9722 Mapache Rent a carcustumerservice@mapache.co.cr1) Paseo Colon Tel. 2586-63762) San Sebastian

Tel. 2586-63103) Alajuela Tel. 2586-63804) La Fortuna Tel. 2586-63955) Liberia Tel. 2586-63866) Tamarindo Tel. 2586-6391Disc. 15% National Car Rentalwww.nationalcentroamerica.comDisc. 20% code arcrreservations@grupoanc.comor book through their websiteuse the code ‘arcr’1) San Jose, Airport2) San Jose, La Sabana3) San Jose, Plaza Viquez4) San Jose, Hotel Marriott5) Liberia Airport6) Nosara7) Guanacaste Four Seasons8) Peñas Blancas9) Manuel Antonio10) Los Sueños Marriott11) Puntarenas, Marina

Herradura

12) Uvita13) Alajuela, Rio Segundo

Transportes San JuanHandicap TaxiTel. 8778-9378Disc. 10%

Dining-Bars & Restaurants: Antojitos RohrmoserPavas, 200 West of Cemaco Tel. 2231-5564 MexicanDisc. 10% Chancay Restaurantes1) Plaza: Antares 2225-40462) Itskazu 2588-23183) Rubi 2239-8934Peruvian RestaurantsDisc. 10% Cascos Ligeros1 Block west Castro’s Bar Barrio Mexico InternationalTel. 2121-4074Disc. 5% El Barco de los MariscosSan Rafael de HerediaTel. 2237-1556 SeafoodDisc. 10% cash 5% c.card

Finca HuetaresAtenas Tel. 2446-4147Restaurant, sp/en/fr/gmDisc. 15%

JR RibsBarrio Amon San JoseTel. 2223-0523American, BBQ,Country, TexasDisc. 10%

LukasSan Jose, El PuebloTel. 2233-230924 hour Rest. & popular night spotDisc. 10% cash 5% c.card

Palacio ImperialPavas, 300 West of the US EmbassyTel. 2231-1050 Chinese & deliveryDisc. 10% cash PapapezSan José, El PuebloTel. 2233-2309 Seafood RestaurantDisc. 10% cash 5% c.card Raisanbin RestaurantC.Comercial del SurTel. 2227-7075Caribbean FoodDisc. 10% cash 5% c.card Restaurant HotelsEscazu, The Muse at Beacon Grand View at Grand Tara Tel. 2228-3110InternationalDisc. 15%

Rest. Mama’s Place1 block east Club Union, Sjmamasplacecr@gmail.comTel. 2223-2270Italian & InternationalDisc. 10% cash 5% c.card

Soda TapiaSabana, Lindora,Alajuela,Herediawww.sodatapia.comTel. 2256-9456 Soda & Rest.Disc. 10% Tony Roma’sTrejos Montealegre, EscazúTel. 2288-0800Ribs & MoreDisc. 10%

Villa BonitaPavas, 100 West of Bomba Favorita in front of SylvaniaTel. 2232-9855 / 2220-2477Chinese & deliveryDisc. 10% cash 5% c.card

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Alcoholics AnonymousGroups 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�ngsAl-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- EscazuThe 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- GolfitoMee�ngs are held 4 pm 1st Tuesday every month at Banana Bay Marina. The Golfito GOVETS have been helping Southern Costa Ricafor over 20 years. Contact Pat O’Connell at walkergold@yahoo.com or 8919-8947, or Mel Goldberg at 8870-6756.

American Legion Post 16- GoicocheaMee�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 ClubThe 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 ClubThe 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 AbroadDemocrats 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 atVoteFromAbroad.org!

Li�le Theatre GroupLTG 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 8858-1446or www.li�letheatregroup.org

Marine Corps LeagueMeets 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 ClubNewcomers 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 RicaThis 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 AbroadRepublicans Abroad meets the third Monday of the month at 11:00 am at Beso’s Restaurant in Sabana Sur. Contact Dick Macauley at 2439-2897 or dickmacauley@yahoo.com.

Radio control Sailing ClubMeets at Sabana Park Lake. For informa�on contact Walter Bibb.Wwbbsurf40@yahoo.com

Wine Club of Costa RicaPlease 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 RicaIn 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 RicaSome 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 11207No-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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El Residente 14

A Day in the Lifeby Allen Dickenson

Things I Forgot.

This isn’t what I had Planned!

I came to Costa Rica with the idea I would re�re to spend my declining years in solitary peace, quiet, and tranquility. I had sufficient resources to live comfortably and planned on doing simple things like reading, wri�ng, and enjoying the sunny warm climate of a tropical paradise. That was all I had in mind. Honest!

Ah, but life has its twists – I should have known that idyllic life I envisioned wasn’t going to be my fate; with absolutely no inten�on to do so, I fell in love with a local woman. And it’s all been seriously different ever since. Not in a bad way, mind you, but my life is certainly not what I had an�cipated.

I thought a permanent rela�onship would be nothing but a simple, posi�ve addi�on to the life I had planned. A beau�ful woman and some disciplined and well-mannered children I could love, mentor, and provide with a good life. Theore�cally, the peace and tranquility I foresaw would reign with just a few minor altera�ons.

Ha! How wrong can on person be? Some�mes my mind boggles at my own mind!

In my defense, I guess being a formerly married man with children grown and gone for some �me, and living alone for fourteen years, caused me to experience some sort of memory lapse. I had forgo�en all those li�le details about married life, and especially about what’s needed to raise kids. It didn’t take long, however, before I was reminded that sharing a house and life with a wife in her mid-thir�es, three teenage girls, another younger female child trying to emulate her older sisters, and one small boy, was quite different than living alone!

For instance, I had forgo�en about the drama. A watchword with teenagers everywhere, DRAMA! was one thing I quickly relearned about. And there’s more. What was new was that if you are a Tica female, and you can’t add a healthy dose of high drama to any situa�on, it just isn’t worth talking about. And Ticas love to talk. Therefore, there is not any situa�on to which lots and lots of drama can’t be added. Throw in some teenage

angst and, OMG!

Directly related to that, and maybe one of the biggest things I failed to foresee, was BOYS. When my wife and I began our rela�onship over five years ago, the oldest girl was barely 13 and boys were not yet on the horizon. Time, love (or maybe just simple stupidity) blinded me to the eventuality that someday those girls would be a�rac�ve teenagers who would draw boys like flies to honey. I should have known that it was inevitable that boys would become an all-consuming preoccupa�on for them, but I forgot. And when it happened, the transi�on wasn’t just one girl, then another. No, not in my house. It was a group explosion. Now, at the ages of 18, 17, 15, and (and to some yet-to-be-fully-unleashed-extent, the 12 year old) have all have succumbed to siren call of their hormones – all at the same �me. Can you spell H-E-A-D-A-C-H-E?

Somehow, it s�ll comes as a surprise when I walk downstairs and find a gaggle of strange boys si�ng around my living room. Though these young men are generally polite and well mannered, there is no point in learning their names, or even their faces, because my girls at least have the good sense to “rotate the crop.” They do so with such frequency, however, that the landscape changes almost daily. That, to me, is a good sign – it signals that they are having fun and not prematurely locking themselves into some future emo�onal disaster. But the numbers!

There’s a lot of other, more mundane things I had forgo�en about too. For instance there’s the toilet paper situa�on. I spend what seems to me to be an inordinate amount of money keeping the house supplied in toilet paper. Personally (despite the evidence I can see in the waste cans next to the toilets) I can’t even begin to

imagine where it all goes. A 1,000 sheet roll-a-day seems to be the norm. Simple math says that, even coun�ng myself, each person uses about 142 sheets a day. How can anyone do that? Oh yeah, females. I forgot.

November - December 2012 15

Shoes are another thing. How anybody can need new shoes as much as my kids do is something else beyond my ken. School shoes, play shoes, walking shoes, the right color shoes, short boots, tall boots, sandals, flip-flops . . . I es�mate that in a year I spend about a million dollars on new shoes. “New shoes? What happened to the ones I bought you last week? Oh, that was your sister? Yes, I can see your toes hanging out. Can’t you put off this growing thing a few months?”

The same goes for clothes. I have shirts that are only four or five years old and are s�ll in great shape. So what if my friends have seen me wearing them all numerous �mes? Not one of them has ever commented, “Hey, haven’t I seen you wear that shirt before?” So why is it necessary for them to need a new ou�it so o�en? There’s a comprehension gap there someplace. Oh yeah, females again.

Want to know the precise cost of hair gel, beauty soaps, body creams, etc? I know because I purchase replacements, in the “large economy size” for those things at least once a month. It seems like I buy enough of those items to keep a small army with so� skin, slicked back hair, and smelling sweet for at least a year. And hand soap? I think they eat the bars whole.

Which brings up something else: Most of we North Americans have become at least semi-immune to Madison Avenue’s manipula�ons. For instance, we realize that if all the adver�sing claims for improved devices that give a closer shave which have been touted over the past fi�y years were true, we men would only have to shave about once every three months. Or, if

all the diets and exercise machines adver�sed on TV actually worked like the infomercials said, there would be no obesity problem. But somehow my Ticas haven’t go�en that sophis�cated. As hard as I try, they s�ll believe that every ad for a new toothpaste is literally the truth and that I have to buy some so their teeth will shine like a star gone nova. Gawd, the money I spend on the newest, latest, greatest personal products!

Then there’s the music. This has got to simply be an age / genera�on issue. I didn’t grow up in the Big Band era; I am a Rock and Roll child and love the melodious music of the ‘60s, and ‘70’s. Despite what my parents said about R&R, I do value the importance of melody, harmony, and lyrics. Heavy beat and monotone verbiage doesn’t float my boat. I, like my parents, have a hard �me accep�ng that music has evolved because what I hear (over and over) isn’t music to my ears. The bad thing is that the genera�onal difference applies to my wife as well – she likes that crap. But, on the plus side, I take some solace in the fact that she bridges the genera�ons and appreciates what I consider music too. But that ain’t what gets played most.

This isn’t really a problem unless we are in the car and I make a stop. I’ll go into a store and come back to find some gawd-awful something blaring from the speakers. Thankfully I have a bu�on preset for the local

El Residente 16

oldies sta�on. It’s just that when I hit it and return to something with a melody, the collec�ve reac�on of the others in the car makes me feel like a curmudgeon. An OLD curmudgeon.

And volume? That’s a constant issue. Thank the gawds there is a volume control on radios and TVs I can make them ac�vate! All I have to do is make myself heard above the noise. I know I have a hearing loss and like things a li�le on the loud side, but there is loud and there is LOUD!

Next there is the telephone (I’m thinking mainly cellular here.) I admit I have one and use it for necessary conversa�ons. “You forgot to put toothpaste on the list? OK dear, I’ll get some. That brand? But it’s double the price of the regular stuff! Yes, I know, they say your

teeth will be whiter than a polar bear’s bu�. Have you ever seen . . . ? OK, OK, never mind, I’ll get some.”

It is beyond my comprehension why it is important for teenagers to share everything, every hour of the day, either verbally or in text. Somehow I missed something somewhere along the way. At least I can maintain some control via the pre-paid cell phone strategy; “What? You burned through that one-mil of �me I bought you a two days ago? Sorry, it will be a couple of more days un�l I can buy you anymore.”

Oh, and there’s one other thing; I live with locusts! I had forgo�en how kids, especially teenagers, are always hungry! I can’t buy enough food. And I can forget buying myself something special, like an expensive package of imported Keebler’s Chocolate Chip cookies with the idea I’ll snack on a few later. Unless I eat them all between the store and the front door, I can just forget them. A lock box seems selfish, but I can’t think of anything else.

So there it is. Like many others, my life has turned out much differently than I an�cipated when I came to Costa Rica. I expected to make some cultural changes, to learn a new language, eat different foods, etc. But life never works out like we plan. And this is ba�er. The kids keep me young (or at least I think I am younger) and I’m not vegeta�ng. They say an ac�ve mind helps prolong life, and at this rate I’ll live to be one-hundred and fi�y! By then I may be deaf, but my teeth will sparkle.

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 Bachelors Degree from the University of New York and a Master’s Degree from the University of West Florida. He can be reached via email at: allen@humphree.net.

November - December 2012 17

El Residente 18

WANTED! Your Stories.

El Residente is conduc�ng a contest; we are looking for stories of people’s experiences here in Costa Rica.

Aspiring writer? Have a Blog? Wri�en le�ers to folks back home? Got a short unpublished piece you wrote that you didn’t know what to do with? Send it in! Humorous, tragic, or just stories about daily experiences are all acceptable. Length should be 1,000 words or less.

You don’t need to be an excellent writer. Just tell us your tale and we’ll make sure it’s well told. (All submissions published will be subject to edi�ng for length and content to meet space requirements.)

There is no limit on the number of submissions, so if you have more than one story to tell, send them all in (separately, please.)

El Residente will award the winner a cash prize. All submissions become the property of ARCR which may publish them at their discre�on.

Achieve fame, fortune, and possible immortality! Send in your work NOW while you are thinking of it!

All entries should be submi�ed in MS Word format, via email, to Ryan Piercy at: rpiercy@casacanada.net. Please use “CONTEST” as the subject line. Deadline for submission is December 15, 2012.

RULES: We don’t need no s�nkin’ rules! Well, maybe one: Eligible entries should be 1000 words or less, related to living in or visi�ng Costa Rica, do not include profanity, and received via email in MS Word format by El Residente before December 15th 2012. See, easy! Only 1 one rule.

Overstaying Your Visa

For tourists out there, overstaying just got pricier. The new law called for $100 per month overstayed on your visa, but the fine has not been applied, un�l now.

As of September reports have confirmed that some foreigners are having to pay the fine now when leaving. Addi�onally it has also been reported that Tourists who leave with a due Traffic Fine will also not be allowed re-entry un�l paying said fine. See below...

The New Traffic Law is just FINE!

... for MOPT anyhow. That stands for the Minesterio de Obras Publicas y Transportes, who have a new series of fines to apply, along with points for your license. So now its really �me to be on the lookout for those flashing lights up ahead, even if you are a tourist!

Infraction Points FineFailure to use seatbelt 4 ¢94.000Talking on cell phone 6 ¢280.000

U-turn where not permitted 6 ¢280.000

Failure to respect plate restriction ¢20.000

Driving 20 km/h or more in excess of limit ¢47.000

Driving 40 km/h or more in excess of limit 4 ¢189.000

Failure to keep distance from vehicle in front ¢20.000

Failure to respect Stop light or sign 4 ¢189.000

Passing on the right side on roads with two-way

traffic6 ¢180.000

Driving on the beach ¢47.000Driving without

headlights between 6 pm and 6 am

4 ¢94.000

Drivers who transport and dispose of trash in

public¢20.000

Improper use of a horn ¢20.000Having damaged light

sor wipers ¢20.000

Circulating without a windshield ¢20.000

Using loudspeakers without permission ¢20.000

Use rotating lights without permission ¢20.000

Motorcyclist or cyclist not wearing a reflective

vest¢47.000

Not using a helmet (motorcyclist or cyclist) 4 ¢94.000

Driving with expired marchamo ¢47.000

Driving without RTV ¢47.000

ARCR Update

November - December 2012 19

Failure to pay toll ¢20.000

Driving without a license inscribed 6

¢280.000 and vehicle is removed from

circulation

Driving with a suspended license 6

¢280.000 and vehicle is removed from

circulationDriving with an expired

license 6 ¢280.000

Offering public transport without license 6 ¢280.000

Those with a foreign license failing to drive with local license after

90 days

4 ¢94.000

Failure to show your license ¢47.000

Circulating without fire extinguisher, two

triangles and a reflective vest

¢20.000

Driving without carrying vehicle documents ¢20.000

Driving drunk with 0.5 & 0.74 grams of alcohol

per liter of blood6 ¢280.000

Driving drunk with above 0.75 grams of

alcohol per liter of blood6

¢280.000Judge can sentence 1 to 3 years

prison. 2 year suspension and vehicle impounded.

Driving more than 120 kilometers per hour 6 ¢280.000

Driving more than 150 kilometers per hour 6

¢280.000Judge can sentence 1 to 3 years

prison. 2 year suspension and vehicle impounded.

El Residente 20

Novel News

A President for Eden

Author: Albert A. Correia

“I started it around noon . . . it grabbed me and I couldn’t stop un�l I finished it . . what a great read!!!”

That’s how Gary Davis, author of Costa Rica on the CUSP, reacted to the new Costa Rica novel, A PRESIDENT FOR EDEN.

The field of candidates is shaken up before the 2018 Costa Rica presiden�al elec�on campaign even begins when a�empts are made on the lives of the two leading contenders. With the favorite, Orlando Sánchez, out of the race, his wife, Gwyneth Grosvenor Markham, runs in his place.

Because Gwyneth opposes the health care plan he and Orlando came up with, Juan López López, switches par�es so he can run against her. Despite having almost being killed because he was planning on running, Dr. Gerardo Granados decides he has to stay in the race to oppose Juan’s health care plan.

Juan shoots to the top of the polls when his party comes up with a plan that would put the Panama Canal out of business, bringing billions of dollars to Costa Rica. With

beau�ful Elizabeth Trujillo calling the shots, based on orders she receives during clandes�ne midnight phone calls, Juan moves ever closer to winning the February, 2018, elec�on. If he can reach forty percent, he can avoid an April run-off between himself and the next leading vote-ge�er.

Murder, an a�empted drug cartel takeover, and a ques�onable “overland canal” make for a presiden�al campaign that’s even more conten�ous than usual. Then, a terrorist a�ack in the midst of a Christmas parade creates panic throughout Costa Rica and all police personnel are put on terrorism alert. That leaves only Xavier Zuñiga, an overweight federal officer, a visi�ng CIA desk man, and George Washington Columbus, a San José businessman who was once secretly in the drug trade, to find out why all Costa Rican drug dealers are being murdered. And why El Mar�llo, a notorious South American cartel hit man and organizer, has slipped covertly into the country.

The boldest move in the history of presiden�al poli�cs shakes up the final days of the elec�on. Then, a last-minute maneuver by one of the candidates makes it impossible to determine the winner un�l every vote is counted.

The new novel is the third in “The Eden Trilogy” series. The first book, EVEN IN EDEN, was reviewed by El Residente in the March/April, 2008 edi�on.

A PRESIDENT FOR EDEN is available on the publisher’s website, Booktango.com, and also on Barnes and Noble.com, Kobo.com, SquibD.com, Sony.com, Apple iBooks, Books on Board.com and Amazon.com

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El Residente 22

Dollars & $enseby Alan Weeks

Case for Human Ingenuity

This is the 40th anniversary of the release of the book “The Limits to Growth” from the Club of Rome, which used computer models to predict that world popula�on growth and economic expansion would cause the Earth to “overshoot” its carrying capacity of finite resources, and eventually lead to overpopula�on, mass starva�on, smog disasters, pes�cide-induced cancers, oceans devoid of fish, massive species ex�nc�on, and significant reduc�ons in life expectancy, among other inevitable calami�es, disasters, and catastrophes.

As George Will (1) explained in a recent column (“Why Doom Has Not Materialized”), “We were supposed to be pre�y much ex�nct by now, or at least miserable. We are neither.” He then asks, “So, what went wrong?” And responds that “The modelers missed something — human ingenuity in discovering, extrac�ng, and innova�ng, which did not just appear a�er 1972.”

Another proponent of the power of human ingenuity is Dylan Grice, (2) of SocGen. He believes that inves�ng in commodi�es for the long run is a bad idea and stated: “When you buy commodi�es, you’re selling human ingenuity.”

Furthermore, “This faith in the human brain is just human excep�onalism and is not jus�fied either by our past disasters, the accumulated damage we have done to the planet, or the frozen-in-the-headlights response we are showing right now in the face of…” [future calamitous forecasts].

Jeremy Grantham, (3) on the other hand, started last year to explain why he believes the world is facing a “paradigm shi�” on commodi�es. He has also offered a startlingly depressing outlook for the future of humanity.

Grantham concludes that the world has undergone a permanent “paradigm shi�” in which the number of people on Earth has finally and permanently outstripped the planet’s ability to support us.

Specifically, he says, the phenomenon of ever-more humans using a finite supply of natural resources cannot con�nue forever, and the prices of metals, hydrocarbons (Oil), and food are now beginning to reflect that. In other words, Grantham says, “It is different this �me”. He believes that the trend of the last 100 years, in which the prices of almost all major commodi�es have steadily declined, is permanently over. And from here on in, humans will be compe�ng more, and paying more, for ever-scarcer resources.

From an investment standpoint, this paradigm shi� need not

mean disaster, Grantham says. One obvious play is to own “the stuff in the ground” (and the ground itself, as the boom in farmland prices illustrates). Another compelling play noted is to own companies and technologies that facilitate resource conserva�on.

From a societal standpoint, he believes the news is far worse, in that, in his opinion, the planet can only sustainably support about 1.5 billion humans, versus the 7 billion on Earth right now and heading upward. Grantham asserts that for all of history except the last 200 years, the human popula�on has been controlled via the limits of the food supply. And, he thinks that eventually the same force will come into play again.

This sounds very ominous. However, like Dylan Grice, I am very op�mis�c on behalf of mankind and believe that ingenuity will ul�mately see us through this poten�al natural resource, as well as a food crisis.

I am also in agreement with Bjorn Lomborg (4), a Danish academic and skep�cal environmentalist who made a detailed cri�que of the hyped theory that Global Warming is man-made, as well as with his conclusion that “Even though the Club of Rome’s school of thought has mercifully gone the way of other 1970s-era relics, such as pet rocks, the effects linger in popular and elite consciousness”.

“People get more excited about the fate of the Kyoto Protocol (aimed at figh�ng global warming without China’s involvement) than the fate of the Doha Round (aimed at lowering trade barriers) — even though an expansion of trade would do hundreds or thousands of �mes as much good as feeble limita�ons of emissions, and do so more cheaply, quickly, and efficiently for the very people who are most vulnerable. It is past �me to acknowledge that economic growth, for lack of a be�er word, is good, and that what the world needs is more of it, not less.”

Feeding one’s own popula�on, as well as helping to feed the world, is a role that governments need to be far more pro-ac�ve in order to make it happen.Most of the developed na�ons are s�ll ac�vely blocking a�empts to increase the produc�on and trade of essen�al food products. They need to start ac�ng like leaders and help to feed the world’s needy people by elimina�ng produc�on and trade barriers on food, as New Zealand already has, and stop was�ng corn and soy to make bio-fuel (par�cularly now that there are be�er fuel alterna�ves and severe droughts are cu�ng yields).

In addi�on, both China and India need as a top na�onal priority, to tap the ingenuity of their own people to develop sustainable, affordable, ways and means to provide at least enough of their own nutri�onal food.

Why Not to Invest Long-Term in Commodi�es

November - December 2012 23

Dylan Grice (2) believes that it is a mistake to invest in commodi�es for the long term. He rejects the dire predic�ons of doomsayers because he is of the opinion, and I agree, that their views do not take into account man’s ingenuity which, in Dylan’s opinion, explains why the long term return on commodi�es is zero, as shown on the Chart below.

The Surge in Commodi�es InvestmentsFinancial advisors and investors have fallen in love with commodi�es for at least three reasons:• They are considered an effec�ve hedge against infla�on.• They are perceived to be an excellent diversifier in a

tradi�onal por�olio due to the low historical correla�on with bond and equity returns.

• And, they are seen as a play on the growing dominance of China & the emerging market economies.

The author (5) of the Absolute Return Le�er first wrote about the rapid growth of financial investments in commodity markets over two years ago, and concluded that there was a strong link between the surging interest in commodi�es from the financial community and the rise in commodity prices.

Commodi�es certainly used to be a great diversifier, but that was before so many financial investors and speculators flocked into the space. Now, as investors look to gain exposure to emerging economies through commodi�es, inves�ng in this asset class has become a duplicated risk trade rather than a risk diversifier.

In addi�on, based on the author’s recent analysis, he has decided to reverse his long-standing bullish view on oil prices and now believes we are approaching the end of the oil era. Some reasons why he thinks oil prices, as well as other commodi�es, will go through significant correc�ons over the next several years are:• Many investors will ul�mately be disappointed by the

lack of diversifica�on this asset class offers• Governments and regulatory authori�es have effec�vely

declared war on commodity speculators, it is hoped they are trying to clamp down on the ‘dark forces’ of commodity specula�on.

To this, I am adding:• Far too much money (much of which is highly leveraged)

has flooded into commodi�es and is chasing far too li�le value.

• As global economic ac�vity con�nues to decline, demand is steadily declining. This is a defla�onary trend that will drag down Equity (s�ll 40% above the long-term norm) and Commodity valua�ons much further.

INVESTORS BEWARE

(a) Clampdown on Specula�onThere has been a lot of talk about the authori�es being “hell-bent” on cracking down on commodity specula�on and manipula�on, but there is scant evidence of this happening. What is s�ll quite apparent is that the major Financial Houses, whose Managers control the Markets, con�nue to ignore slumping global economic condi�ons, weakening corporate profits, as well as the looming EU sovereign and banking crises.

One of the things the current market seems to have in common with the fall of 2007 is that the economy is undeniably slowing, while the stock market is rising. And, while “the tail risks are higher now”, money managers have “stayed in the game” and prices are likely to keep going up un�l they crash, much as they did in October 2007.

This seems reminiscent of the infamous remark by the former Ci�group CEO (6) that “One has to keep dancing while the music plays”. Whatever happens, happens - the fiscal cliff, a global recession, or a reordering of the Eurozone and its banks, (don’t kid yourself, it won’t go smoothly), or significant earnings disappointments -- the major Money Managers hope their 2012 bonuses will be in the bank, before the “plunge.” The ques�on is whether you are going along with this “charade.”

(b) Commodity Supply and DemandThe supply of and demand for various commodi�es appear to be changing quite rapidly around the world. However, Investors are being reminded that history is replete with examples of much money being made and lost during real or perceived periods of transi�on.Let’s update the current situa�on and outlook for the “hard” commodi�es before reviewing the poten�al future of the “so�” commodi�es, focusing par�cularly on Oil & Natural Gas.

Surging “hard” commodity purchases by China over the past few years supplied not just a growing domes�c demand, but also rapidly growing inventories. However, China’s economic growth is slowing and is expected to decline a lot more. And, as China’s economy, out of necessity, is being rebalanced toward much more sustainable forms of growth, this will significantly lessen the demand for “hard” commodi�es.

In addi�on, with current inventory levels being far too high to support what growth in demand there should be over the next few years, it is expected that the Chinese could become net sellers, not buyers, of a number of the “hard”

El Residente 24

commodi�es. All this, almost guarantees that the prices of “hard” commodi�es will collapse.

OIL & NATURAL GASOnly four years ago, I wrote (7) the following with the sub-�tle: THE DAUNTING CHALLENGES AHEAD• As Oil magnate, T. Boone Pickens stated recently:

“America is in a hole and it’s ge�ng deeper every day. We import 70% of our oil at a cost of $700 billion a year; four �mes the cost of the Iraq war”.

• The tripling in the price of oil from $30 a barrel in 2001 to more than $100 today has already created the largest transfer of wealth in human history.

• The idea that increasing domes�c US oil supply and/or replacing oil with alterna�ve renewable sources , plus conserva�on, in sufficient �me to avoid serious oil shortages, seems to be much more of a dream than a reality.

• Meanwhile, in rising economies, such as China, consumers are ravenous for the mobility and freedom that owning a vehicle provides. Given the es�mate that 70 million people around the world are joining the middle class each year, it means many more people are using more oil.

My, how quickly things have changed!Let’s start with the most exci�ng technological breakthrough “made-in-the USA.”

To put it crudely, the US economy has been “fracked up”. Fracking is the extrac�on technique that has enabled drillers to tap enormous new reserves of natural gas (NG) across the country, with the poten�al to change the economics of everything from electricity to trucking. In addi�on, North American oil produc�on is “bouncing back”, driven by technological breakthroughs that have brought hard-to-reach sand and shale deposits into significant fuel sources.

The Manha�an Ins�tute recently released a study (8), �tled “Unleashing the North American Energy Colossus: Hydrocarbons Can Fuel Growth and Prosperity.” Here is an Execu�ve Summary: “The US, Canada, and Mexico are awash in hydrocarbon resources: oil, natural gas, and coal. The total North American hydrocarbon resource base is more than four �mes greater than all the resources extant in the Middle East. And the US alone is now the fastest-growing producer of oil and natural gas in the world.”

“The shale revolu�on could transform our economy,” says the president of research firm Energy Security Analysis (9), who has been covering the industry for 25 years. “The poten�al here is phenomenal.” Being very labor intensive, it has certainly become a huge job creator.

Introducing New Technologies(a) Future Poten�al of Non-Conven�onal Oil Sources“Tight” Oil

“Tight” oil is the nomenclature for unconven�onal oil resources extracted from “�ght” shale deposits by horizontal drilling and fracking technologies.It is very important to realize that this revolu�on did not come about through government planning or foresight, but through ingenuity and a combina�on of individual risk-taking and private property. Another fact is that the new oil resources, which are coming on-stream now in the US, have been made possible by the small and mid-sized oil companies, which are more nimble and more suited to the �ght, narrow boundaries of the new sources.

With oil now gushing out of the Bakken (North Dakota) and lots of poten�al in the Eagle Ford (Texas) and twenty other shale oil plays, it appears that these will supply substan�al produc�on. However, there is much uncertainty regarding the total poten�al from shale oil sources because the Bakken wells are showing rapid decline in produc�on and plateau at very low rates.

With such steep declines, producers may have to invest heavily in new wells every two to three years just to keep produc�on levels flat. Thus, to add three million barrels per day of produc�on from fields across the U.S. could require $75-billion to $100-billion of capital spending every couple of years. How likely is this?

However, as one professional (9) recently stated: “In the energy business, constant change is the new normal.”

(b) Oil SandsThe first and s�ll the major method of extrac�ng bitumen from the oil sands is by open-pit mining. It is well known that development of the Canadian oil sands requires huge capital expenditures up front. However, the projects produce for 30 to 50 years and operate at lower levels of maintenance than does the produc�on of “�ght” oil.

What was very interes�ng to learn is that recent produc�on forecasts (9) are for “recovery of raw bitumen using In-situ methods to surpass produc�on from mining methods by 2015, a year earlier than previously forecast.” Most In-situ produc�on uses steam-assisted gravity drainage technology (SAGD), where steam is injected through a horizontal well to melt the s�cky bitumen and allow it to be produced from a parallel well. Of course, in-situ opera�ons require very much smaller surface “footprints.”

Companies have boosted produc�on over the last decade from Alberta’s Oil sands, from 2.7million barrels/day in 2000 to 3.4m b/d last year. However, this increase is far less than forecast a decade ago.

Now Canadian officials and companies are desperately seeking alterna�ves to get the country’s nearly 200 billion barrels in oil reserves — almost equal to that of Saudi Arabia — to market from landlocked Alberta.

November - December 2012 25

However, the huge oil sands projects and proposed major new pipelines have a�racted nay-sayers of all stripes. One recent ar�cle (10) delved into the hyperbole and hypocrisy expounded about the oil sands by self-proclaimed “experts from Tinsel town.”

Indeed, like any major industrial project, extrac�on of oil from the sands is not without trade-offs. [Let us not overlook the fact that gasoline-fuelled cars are major polluters that spew toxic fumes into our air.]

And, as one independent clerical observer (11) pointed out: “I have never been to any opera�on where more a�en�on was paid to mi�ga�ng effects than to the principal enterprise. Being toured around for the day, I had to remind myself that energy produc�on was the whole point of the endeavour. Aside from the actual bitumen extrac�on plant, all the talk was about the environment, aboriginal rela�ons, and community involvement. It’s almost as if an enormous social development project — recrea�on centers, health clinics, mobile den�stry units, school funding, investment in aboriginal enterprises, immigra�on assistance, transla�on services -- was the main task, with a lucra�ve sideline in energy produc�on to fund it all.”

“I understand why the oil sands are defensive, which is rather

the proper response when being a�acked. But, there should also be pride in the massive entrepreneurial, technical, and human achievement of harves�ng the Earth’s bounty.”

“Many objec�ons arise from a lack of compara�ve sensibility. While the gigan�c mining pits are huge in size, the u�er vastness of Alberta’s north dwarfs whatever impact the oil sands might have. And, the forests stretch out as far as even an airborne eye can see; a modest forest fire would impose a far greater footprint than the mines, des�ned to be reclaimed, do.”“It is true that an open pit mine is not a lovely thing, but then energy genera�on is rarely aesthe�cally pleasing. …...... “Or to make the point more generally, how is a mine in a remote part of Canada’s northern emp�ness more despoiling than a huge sprawling auto plant on the shores of Lake Ontario in Canada’s most densely populated region?”

In Part 2, there will be updates on: Bio-fuels; CNG/LNG; & Renewables; as well as Technological Innova�ons in 4G; 3D Prin�ng; Robo�cs; Bio-tech; Diagnos�cs; and in Agriculture.

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

El Residente 26

AtlánticaMedicalSupply

Company

OstomyWound CareIncontinence

Dermacosmetics

Exchange rate of the Costa Rican ¢ to the US Dollar

April 509.59May 507.30June 503.58July 505.98August 503.22September 503.31

Basic Interest Rate

April 9.50 %May 10.00 %June 9.75 %July 10.25 %August 10.50 %September 10.50 %

Exchange rate of other currencies to the US Dollar

Giro 1,54219Canadian Dollar 1.98340Euro 1.28590Swiss Franc 0.94060Nicaraguan Cordoba 23.82510

Danish Krone 5.79680Norwegian Kroner 5.73090Swedish Krona 6.54870Honduran Lempira 19.65000Bri�sh Pound 1.61370Argen�ne Peso 4.38130Columbian Peso 1,801.70000Mexican Peso 12.86800Dominican Peso 39.21500Brazilian Real 2.03230Guatemalan Quetzal 7.98250Korean Won 1,111.38000Japanese Yen 77.82000Venezuelan Bolívar 4.29470Hong Kong Dollar 7.75390Taiwan Dollar 29.31300Bolivian Peso 7.01000Chilean Peso 473.91000Russian Rouble 31.24610Peruvian Sol 2.59700Polish Zloty 3.19920Australian Dollar 1.03840Chinese Yuan 6.28470

Libor Rate

1 month 0.21425 %3 month 0.35850 %6 month 0.63590 %12 month 0.97300 %

Prime Rate 3.25 %

November - December 2012 27

Holidays of Costa Rica

Tuesday, Dec 25thChristmas Day- Na�onal holidayARCR Closed Dec 22nd -Jan 1st

Tuesday, Jan 1stNew Year’s Day - Na�onal holiday

ARCR Closed

A Touch of Wisdom

“Rather go to bed supperless than run in debt for a breakfast.” - Ben Franklin (1706-1790)

“The company makes the feast.”- J. Warton (1653)

“‘Tis easier to suppress the first desire, than to sa�sfy all that

follow it.” - Ben Franklin (1706-1790)

A Bit of Fun...

I wonder if you choke a smurf, what color does it turn?

Just because you’re paranoid, it doesn’t mean they’re NOT out to get you.

You’re slower than a herd of turtles stampeding through peanut butter.

My Reality Check bounced.

Minds are like parachutes. They work best when open.

Do not meddle in the affairs of cats, for they are subtle and will whiz on your computer.

Lightyears ahead! Just a phonecall away!

Very funny Scotty. Now beam up my clothes.

Do chickens think rubber humans are funny?

El Residente 28