2El Residente

This magazine has been published every two months for 10years as the official communications media of the Association of Residents of Costa Rica. Our organization provides service to thousands of foreigners who have chosen Costa Rica to reside for short periods or for permanent residence.

Since 1984 the Association of Residents of Costa Rica has been offering reliable SERVICES, INFORMATION and ADVOCACY to Costa Rica’s foreign residents. We have the experience and ability to help you with your residency application, immigration, business and financial management, real estate purchases and rentals, property management, insurance, pet importation and much more.

If you wish to place an ad in El Residente, please contactthe ARCR main office.

Editorial Note:

In this issue we touch on Heredia, as some know my hometown. Even living here the province never ceases to surprise me. I think what I enjoy most is the scenery and wildlife, but also the climate is one that suits me better for its cooler temperatures.

Ana has left us in the office, but fortunately for us will continue to write her marvelous articles for the magazine. I know I look forward to reading them each time she sends them in, and I hope you all do as well.

Make sure to read Earls report, as we have a very important event coming up this month, and hope you will take the time to come by and see us in the Sabana on the 24th...

See you soon...

- Ryan Piercy

Notice! There is a new rate for the CCSS, see page 11.

3March-April, 2007

Presidents RReeppooorrrtttby Earl Tomlinson

What’s New ???!There are many things to talk about. On March 24Th we are hosting a fair at the Museo de Arte Costarricense in Sabana Park. Our Board finally produced a brochure, thanks to Kimler Corey and Ryan Piercy. We are moving closer to creating a Foundation for our Charity. Attilio Gilberti is the driving force behind this project. We will be the primary host of this years Christmas dinner/dance. The Canadian Club will assist us in this project and finally we had another successful January raffle. Prizes were donated by Diamantes y Esmeraldas, Clinica Biblica, Hotel Europa, a painting by Olman Cruz and wine from Charles Zeller. I will talk more about these things later, but I must thank Terry Renfer for presiding over last months Board meeting as I was visiting family in Arizona and Southern California. I thought they might try to impeach me, but no luck, so here I am again writing this message. The one thing I like about Southern California is the freeway system .Did you know that you can circle the entire City of Los Angeles without ever riding on a surface street. I know who cares, but back to the freeways they are wide, many lanes and their diamond lane is the best thing since slice bread. Of course you can have gridlock, enraged drivers and some shooting, but hey I can experience that in Costa Rica. Just kidding. I remember, before leaving Costa Rica, I read that somebody donated funds to up grade the traffic light system. Returning I saw these new yellow poles arched over almost ever intersection. I travel from San Francisco dos Rios to ARCR via surface streets. Suddenly

there are semaforos at almost ever corner, at least on the avenues that I travel. One of our lectures, at our monthly seminars, always said that for every 100 meters you drive it’s an adventure. Well now that experience is negated. By the way we hold monthly seminars that cover real estate, banking, purchasing health insurance,

importing and exporting, residency questions, and a plethora of topics that are generated from the attendee’s Q&As. If you have never attended one give it a try. For ARCR members you receive a 50% discount. This is a two-day seminar at the Hotel Torremolinos and it includes lunch. They are held on the last Thursday and Friday of every month. Just call Annabelle for reservations.

Back to what’s new. The March 24th event is to show case charitable organization, commercial companies and Embassies. The event is entitled Regreso De Las Flores. We anticipate 40 or more tables for this fair. All the charitable groups will keep all the funds they raise. All the commercial participants will pay a fee and 100% of those funds will be donated to Hospicio de Huerfanos San Jose. This event is sponsored by ARCR and a generous donation from Banco Cuscutlan. We hope to make this an annual charity event/cultural exchange program. At our table we will have our new brochure, which explains our charity programs. Please stop by and say hello. We will also be selling soft drinks. Sorry

Cover CollageProvince 4-Heredia:The Ciudad de las Flores, named as such not really for the gardens but in fact for some of the ladies, was originally founded in 1570 as Cubujuqui, later Villavieja, and in 1763 Heredia. The smallest of the seven provinces, Heredia still it offers a great diversity in its climates and landscapes, and is definitely a beautiful place to visit or live.

While the city offers many historic sites to visit, including several colonial buildings, the surrounding province offers several national parks full of wildlife, such as the Braulio Carillo’s 44,000 hectares covering seven diverse habitats, or the Sarapiqui’s expansive river, either offering abundant wildlife. Heredia has a little something to offer everyone.

Continued on page 4...

4El Residente

alcohol is not allowed at this event. The event will be open from 9AM to 4PM. We need your support ARCR members so please make an effort to attend. We will have media coverage and all local papers will be provided articles this event. Forgot to mention there will be a local cultural dance groups, sponsored by CFCA, and the Square Dancing Club will perform American style dancing.

HELP, HELP and more HELP. Our Board has taken on some very challenging goals for this year. We need volunteers to make phone calls, contact organizations and collect data for our base. If you are interested please call Ryan, Terry or me at 233-8068.

Our Christmas dinner/dance will again be at the Hotel Cariari. The date will be December 8th so put it on your calendar. Last year was very successful thanks to Alan Weeks and the Canadian Club. This year it’s our turn to make this a success. In the months to come you will be hearing more about this event. Have a great day and remember “people do things for their reasons not yours”.

Please Help Us Help Others.

********

New Foundation

As a result of investigating our various charity activities, and to help increase our ability to work in various charitable areas, it was decided to form a new Foundation to carry on our work.

The benefit of a foundation lies primarily in its tax-free status, and the ability to import donations without duty. Due to the offers we receive of goods from overseas, we feel the foundation will help vastly in this aspect to be able to receive them more easily and advantageously.

The founding members include Grace Woodman (past President) Attilio Gilberti (ARCR Board and Charity Committee) and Ryan Piercy (ARCR Manager). However the reality is this is the result of the work of many many individuals who have helped us over the past decade, and thanks is due to all of them, too many to number here.

Additionally we are looking for Founding Sponsors. A significant one-time donation will bring everlasting attention to the generosity of a few sponsors who help us launch our new beginning.

5March-April, 2007

Association of Residents of Costa RicaARCR CHARITY EVENT

“Regreso de las Flores” is going to be a multi group event pro-moting cultures and charity. Come on out to the Museo de Arte

in the Sabana this March 24th, and help support your clubs. This year funds are being raised for the Hospicio de Huerfa-nos, and our goal is ¢1,500,000. There is no cover cahrge,

just come out, enjoy the fair, and lend us your support.website: www.arcr.net

Alcoholics AnonymousGroups meet daily throughout the country; times and places

change frequently. Call for up-to-date information.San José 222-1880 (Anchor club, also serves Narcotics Anonymous) Av 6 Calle 1, 2nd floor Maryland Building.

Heredia (Laura) 267-7466, Puerto Viejo Limon 750-0080, Zancudo 776-0012, Tamarindo 653-0897, Flamingo (Don)

654-4902, Manuel Antonio (Jennifer) 777-1548, Jacó (Nancy) 637-8824, Zoo Group Escazu 293-4322.

Al-Anon MeetingsAl-Anon Family Group is for all family and friends of Alcoholics.

For information in English, please call Martha 483-1275 or Sandy 288-4836; For Spanish please call Christine 840-4658

American Legion Post 16All veterans are welcome. Meetings are the second Tuesday

of the month at Hotel America in Heredia.Contact Post Commander Jim Young or Post Adjutant Ken

Johnson at 591-1695.

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 information contact us at 282-5365 or at costaricabird

ing@hotmail.com

Canadian Club (ACCR)A group open to all Canadians and thier families. Check out

our website to find out more. website: www.canadianclubcr.com

Democrats AbroadThe Democrats Abroad of Costa Rica meet the last

Saturday of each month at the Aurola Holiday Inn, 9:30a.m. to noon, coffee break menu. Visit cr.democratsabroad.org

or contact Ruth Dixon for information and reservations. 494-6260, dixonmueller@yahoo.com

Little Theatre GroupLTG is the oldest continuously running English-language

theatre in Central or South America. The group currently puts on a minimum of four productions a year offering a choice of modern, classic, serious, and farcical plays. Continuing in

the tradition of its founders, LTG regularly donates to charity, sponsors school drama festivals, trains new directors, and

takes productions on the road to the more remote areas of the country. The group’s monthly social meetings are held in the theatre on the first Monday of the month from 7p.m. to 9 p.m.

and everyone is welcome. Membership costs C 4,000 per person or C7, 000 per family. Also, earn your Wings, become an LTG Angel. For more information Call the LTG Box Office

355-1623 or www.littletheatregroup.org

Newcomer’s ClubA women’s social organization that meets the 1st Tuesday of each month. We welcome English speaking women who reside in Costa

Rica. New and long term residents-contact Nancy 416-6165 or newcomerscr@yahoo.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 am2 months Free Trial for newcomers. For information call Chuck

Jennings. Phone 266-0123 www.pcclub.net

Republican’s AbroadThe Republicans Abroad of Costa Rica meets the second Tuesday

of each month. Contact Francis 203-6131, or or fax 282-2150.

Radio control Sailing ClubMeets at Sabana Park Lake. For information 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 education.For more information on upcoming events please contact us

Phone 279-8927, 257-2223

Women’s Club of Costa RicaFounded in 1940. The Women’s Club of Costa Rica is one of the oldest, continuously operating service clubs in the country. The

name has changed in 63 years, but our motto “friendship and ser-vice” has remained the same,. An English-speaking organization,

our club has approximately 350 members, originating from over 30 countries. Please join and help us to continue to grow. Remem-ber that you can contact us or keep in touch through our website

www.wccr.org

Women’s International League for Peace and Freedom (open to men too) Bilingual group meets in Heredia on the

first Wednesday of the month at 10 a.m. in the clinic of Mireya Gonzalez. We work on peace and human rights issues. Call Mitzi

433-7078 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 activity partners, and professional networking.

www.YoungExpatsOfCostaRica.org

Send us your club news or activities for free publication in this column

6El Residente

Provincial PPaarrkkksssby Ana Hernandez

Nicolás Ulloa: Central Park of HerediaAmidst luxurious vegetation and old-fashioned concrete benches that invite people to sit down and take advantage of the shade provided by tall trees, this handsome park in downtown Heredia, is not only very appealing to look at, it is also distinctively unique.

Several features of European origin adorn the park such as its water fountain placed in the park around 1878 and a pretty cast-iron fence brought from England and installed around the church grounds in 1892.

Its elegant music kiosk was built in 1905. Every Thursday night there are open-air concerts performed by the City of Heredia’s Musical Band, attended by a healthy crowd of city folks. The band also plays every Sunday morning at 10 a.m. after church services.

What makes this park different from many other provincial parks, are the many historical and cultural buildings that are located within walking distance.

Named after Nicolás Ulloa, a prominent citizen of Heredia who helped bring progress to the city at its very beginnings, the park sits in the main city square facing the Church of Inmaculada Concepción.

Several buildings of historical importance to the city can be found at the park’s northern edge enhancing the park’s uniqueness. The República Argentina Grammar School, an impressive educational center built in 1895, occupies almost a whole block looking nowadays very pretty in pink and white. No longer used as a school, is presently protected by local preservation groups.

Near the school, there the post office building, a venerable edifice built in 1915, has eye-catching old floor tiles in the main lobby and was declared a national patrimony in 1982.

The Municipal Palace building is next to the post office. It is used for the official meetings of the office of the Mayor. Its main salon has handsome antique benches and an elegant podium.

The Fortín, a small fort built around 1875 in the northwest corner of the city’s old soldier headquarters, by at the time renowned architect Fadrique Gutiérrez, has been made an official symbol of the City of Heredia.

This small military wonder can be accessed from the Municipal Palace for an up close view of its wrongly designed portholes and controversial construction, even though it was never used for defense purposes.

A better view of the Fortín, however, can be appreciated around the corner of the block. Concrete stairs leads to the upper fort’s viewing area, which is surrounded by gardens and historical plaques, dedicated to famous events in the city’s history.

Across the street from the Fortín, in the northeastern side corner of the park, is the impressive Casa de la Cultura, a building run by the Costa Rican Cultural Ministry, home to local artists’ exhibits and open to the public.

La Casa de la Cultura was the home of former president Alfredo González Flores who lived there since 1923 until his death in 1962. Because of its important historical and architectural value, it was purchased by the government and declared a national monument in 1974.

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8El Residente

Wild Side XXXXXXVVVIIby Ryan Piercy

White as a Bat ! ?I know that seeing a bat all of a sudden might cause one to turn white as a ghost… but the bat too? Well however it happened, the White Honduran Bat, or Ghost Bat, is definitely that, white. Found in Costa Rica in the protected reserve of the Sarapiqui in Heredia, this little bat is nearing endangered status.

White Bats are small for their species, being just 3.7 to 4.7 cm, with a fluffy white coat. Their face, nose and ears are orange, and their wings are black. They are almost like a winged mouse out of some mad scientists laboratory in fact. These bats live in Rainforests, from

Honduras to Panama, making their ‘tent’ homes under the leaves of Heliconia plants. By cutting along the veins of the leaves, they cause them to collapse in a downward v-shape, creating a tent to protect 1 to 12 bats on average. While roosting they cling together upside down in the centre of the leaf.

These makeshift homes protect them from rain, sun, and predators, and are in fact chosen carefully to be about 6 feet off the ground, away from passing dangers. Typical predators may include snakes, opossums, and other carnivores. It is thought that this plants is also chosen due to its weak stem, causing it to move easily as predators pass by and alerting the bats. The bats also rarely return to the same home each day.

The Honduran White bat, Ectophylla Alba, sleeps during the day, and at night hunts for fruits and vegetation to diet on. It is one of 15 species of bats found in Latin America that houses in tents, usually consisting of one male, with the others being his ‘harem’ of females.

Since their nose protrudes from their face in a triangular shape, scientists call members of their family “leaf-nosed bats.” There is a thin, black membrane covering their skull that might provide the bats with protection from ultraviolet radiation -- a natural form of sunscreen! It has also been questioned why they are white instead of green for better protection against the leaves, but in fact the sunlight shining through the leaves gives them a green tinge on their fur.

In Costa Rica this little Murcielago Blanco is generally

found below 500 meters in Altitude, and here it is relatively common to find them in their tent-homes.

Due to their habit of housing in Heliconias, rainforest destruction is their greatest threat of extinction. The preservation of lowland Rainforests that have Heliconia plants will be necessary in order for this species to survive. Fortunately Costa Rica does much to preserve their Rainforests, and so hopefully this tiny species will continue to thrive here at the very least. If you happen to go trekking in the forests of the Sarapiqui, don’t forget to check under the leaves for a sighting of these little critters.

9March-April, 2007

10El Residente

Business Brieeffsss“The Brothers” Goes To Trial

Osvaldo Villaobos Camacho will be sitting at the defence table during his long awaited trial as the Fiscalía opens their case known as Ofinter. The case will be tried in the Tribunales de Juicio de San José.

In the courtroom, in addition to his accusers, witnesses against him and the judges who will determine guilt or innoncence will be supporters, some who have stood by Osvaldo, others who, though critical of the whole process, are there to stand behind their man.

One man who will certainly not be present in the courtroom is the other half of The Brothers operation, Osvaldo’s brother, Luis Enrique Camacho, who has been missing since October of 2002, who with his brother is being accused of the same crimes. The case will go ahead without him.

Osvaldo is accused of “legitimación de capitales, estafa e intermediación financiera ilegal” - money laundering, fraud and illegal financial intermediary.

The Brothers took in investors money paid interest on the money that was as high as 3.5% per month.

Pope Concerned About Poverty in Costa Rica

Pope Benedict XVI expressed his concern for the increase in poverty in Costa Rica and has asked the Arias government to adopt “urgent measures in consideration of a person, family and society”. The Pope made his comments during a ceremony installing the Costa Rican ambassador, Luis París Chaverrí, to the Vatican.

The Pope said that poverty affects education, health and the home and declared that the Catholic Church has a commitment to Costa Ricans and is worried about the growing level of poverty that leads to insecurity and domestic violence.

For his part, Costa Rican president Oscar Arias, said that the Pope is mistaken “because in Costa Rica the poverty level has been stagnant at 20% since 1994”.

The president added that a number of measures - like the doubling the amount of pensions, helping youth stay in school, reducing the unemployment rate from 6.6% to 6%, reducing inflation from 14% to 9.3% and the ridding of some 46.000 slums - will reduce the poverty rate to 16% in the next four years.

Arias, although, he differed with the Pontiff, he did add that poverty is the worst form of violence in the country.

Iberia Announces More Direct Flights To Costa Rica

The Feria Internacional de Turismo (Fitur) held in Madrid, Spain, had good news for Costa Rican tourism for this year with the expected rebound of European tourism.

First came the news that Costa Rica as being chosen by Travel Weekly as the best vacation destination in Latin America. Now, Iberia, the Spanish airline, announced an increase in the number of direct flights to and from Costa Rica.

The news brings a welcomed relief to the tourism sector, which saw a negative forecast for European tourism with the closing of Air Madrid, which brought a large number of European tourists to the country.

According to the Instituto Costarricense de Turismo (ICT) - Costa Rican tourism board - the Iberia decision will mean an additional 92.000 visitors each year.

ICE Promises End To Cellular Reception Problems

If you can believe the promise, the Instituto Costarricense de Electricidad (ICE) - the state monopoly on telecommunications - it will better the service to its cellular network, mainly by assuming the operations of the Alcatel GSM network of 400.000 cellular lines.

ICE says that the network currently is operating in 60% of the national territory, contrary to the coverage maps on the institute’s website that 95% of the country is covered. ICE promises to increase coverage to 80% by the end of 2007.

Pedro Pablo Qurios, president of ICE, said the institution will assure the operations and maintenance of the Alcatel system, breaking the six year contract with the telecom provider.

Geovanni Bonilla, ICE legal advisor, the breaking of the contract will not have legal consequences for the institution, nor will it affect service.

11March-April, 2007

New At ARCCRRby the Staff

CCSS IncreaseFor the first time in over a decade, the ARCR will need to increase the price of the CCSS for members, as this years increase from the Caja will not be offset by the devaluation of the colon.

Effective February 1 the new rates are: $40 for members age 55 and over $60 for those members under 55

The monthly rates for the CCSS are per individual, but cover spouse and dependants for the same amount.

No RenewalsIn January we received a copy of the official government decree that announces the renewal of all cedulas that expire right up until November of 2007. Though the official text is somewhat more specific, in short the rules are quite simple.

All cedulas that expire (or expired) between July 1st 2006 until November 30th 2007 have been extended for 1 year. They will need to be renewed next in the same month 1 year after the expiry date printed on the reverse side of the cedula.

Those that expired prior to July 1st 2006 have been renewed until July 1 2007 inclusive. We therefore expect a huge mass of people lining up to renew starting July 1 this year.

This decree covers all cedulas issue via normal process, but does not cover those that were aquired through the amnesty in 1999. Those cedulas need to be renewed as per normal.

New Address for AerocassillasFor those members that use the Aerocassillas services out of the ARCR office, please be advised there is a new address that takes effect as of this month. For those who do not already have this information from Eduardo, please see him at the office, or email him at eduardo@casacanada.net for the details.

Charity EventWe hope you will join us this March 24th, at the Museo de Artes in La Sabana, for our first (Hopefully annual) Multi-group Charity Fundraiser.

Sponsored by Banco Cuscatlan, and hosted by the ARCR, we hope to bring together a number of organizations in an effort to promote Charity and Culture in the country.

Among the participants this year will be the US Embassy, the Womens Club, the CFCA, the Square Dancing club, and many more groups. We have also invited organizations and individuals willing to help us offer the goods and services in order to help raise funds.

There is no entry fee, but your support and/or purchases will go to help raise the ¢1,500,000 we hope to raise, this year to support an Early Stimulation San Jose. This 100 year old institution needs our support, and we need yours...

The event takes place this year on the Saturday from 9 am until 4 pm. Drop by, bring your friends, and enjoy the activities while supporting an important cause in our adopted country.

12El Residente

Herediaby Ana Hernandez

The City of Flowers and CultureAt about 11 kilometers northwest of San José, the City of Heredia, a modern and active town filled with lots of commercial activity and abundant cultural life, is the heart of the province of the same name. The city itself has approximately 40,000 people.

Well-known Universidad Nacional (UNA), the national university, with a progressive curriculum in liberal arts, marine biology and veterinary medicine, along with its growing student population, helps to give Heredia a vibrant, cosmopolitan feel. The university campus is the scene to constant cultural events such as concerts with live performers, independent theater, poetry reading and a good dosage of political effervescency.

Each of its counties is very unique in nature and within close proximity of each other. Some are very modern and some maintain a rural charm. Counties are named after saints: Santo Domingo, San Pablo, San Isidro, San Rafael, Barva, Santa Barbara, San Joaquín de Flores and San Antonio de Belén.

What makes Heredia such a unique place to live is that still maintains a rural quality even in towns close to the capital city. Most towns adorn their houses with lovely gardens. Many of these houses are made of adobe with old-fashioned fences topped with red and pink bougainvillea. It is for this reason that Heredia is also known as the City of Flowers.

Heredia has many historical buildings such as its 1797 Basilica de La Inmaculada Concepción, constructed of sturdy masonry that has withstood several earthquakes and located right in the center of town.

Another well-known colonial architectural feature of the city is el Fortín, a circular fortress built around 1875 with a remarkable design fault. The gun ports were wider in the outside allowing bullets to come in easily and not permitting

a good defense from the inside. Luckily, the fort was never used for strategic purposes.

On the northeastern side of the fortress, there is Casa de la Cultura dedicated to art and history exhibits and declared a historical monument in 1981. Former President José Alfredo González Flores, a social reformist, lived in this house most of his life until his death in 1962.

San Rafael and San Isidro, counties blessed with abundant coffee plantations in the past, have opulent gothic style churches built with the contributions of wealthy citizens at the turn of the century.

North of San Rafael the road leads toward the slopes of Barva Volcano. Temperatures drop dramatically and the scenery reminds us of the Swiss landscape with its characteristic green conifer forests where the air is always cool and mornings and evenings can be quite cold.

Continuing the climb toward impressive Barva Volcano, part of the Central Mountain Range, there are many towns amidst coffee plantations and high altitude cattle farms. Even the names of some of these towns such as Bosque de la Hoja, Monte de la Cruz, or San José de la Montaña, speak of their proximity to mountainous terrain.

Most of the geographical extension of the Heredia Province is surrounded by the central chain of mountains dominated

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13March-April, 2007

by vast areas such as Braulio Carrillo Cloud Forest National Park with altitudes surpassing 1,500 meters.

The northern tropical lowlands of the Sarapiquí region closer to the Caribbean Plateau also belong to Heredia. For this reason, the province is blessed with a large array of mini-climates, ranging from cold and windy in higher elevations to very rainy near the cloud forests and dry and warm closer to the Central Valley.

Driving north of the Town of Barva, the road to the right goes uphill but continues on the left to Vara Blanca and towards the Sarapiquí Valley. The back roads toward the lowlands are surrounded by abundant tropical vegetation and luxurious green meadows. The imposing waterfall La Paz, a favorite sight visited by tourists year round can be found along this highway.

Closer to the Caribbean Plateau the towns of Puerto Viejo and La Vírgen of Sarapiquí resemble old cowboy towns where time seemed to have stopped. From Puerto Viejo there is direct access to the Sarapiquí River, famous for its amazing wildlife. There are tourist guides who rent their boats for long river excursions and are more than willing to point out to visitors the bountiful animal species typical of the area.

The river has caimans, turtles, colorful water birds of slender legs and beaks. From atop, the vegetation is luxurious. Long grassy nests build by the Oropendola bird hang like moss ribbons from high branches, while above on the tree canopy monkeys actively swing and sloths lazily climb toward safer ground.

14El Residente

Learning The Languageeby Christopher Howard

Metric Vocabulary.If you stepped onto a scale in most countries in Latin America, you would probably get the shock of your life. Supposing you weighed 110 pounds, the scale would read just 50. But don’t celebrate, you haven’t lost weight. You are just using another system – the Metric system – and you are being weighed in kilos as most of the world uses. For your reference, a kilo is 2.2 pounds.

If you entered a clothing store, you would have to tell the sales person your size in centimetros. A size 9 shoe for example would be a 40. A pair of men’s pants with a 34-inch waist would be an 86. A doctor reading your temperature gets a reading in centigrados. A normal reading in centigrade would be 37°, the equivalent of 98.6° Fahrenheit.

Below is some indispensable metric vocabulary that you should master if you plan to live in Costa Rica or any other Latin American country.

1 Hectárea hectare = 2.47 acres 2.47 acres 1 Metro cuadrado 1 square meter = 10.76 pies cuadrados 10.76 sqare feet 1 Metro 1 meter = 3.28 pies 3.28 feet 1000 Milímetros 1000 millimeters = 1 metro 2.54 Centímetros 2.54 centimeters = 1 pulgada 1 inch 1.61 Kilómetros 1.61 kilometers = 1 milla 1 mile 1 Litro 1 liter = 1.06 cuartos 1.06 quarts Un gallon 1 gallon = 3.79 litros 28.35 Gramos 28.35 grams = 1 onza 1 ounce 1000 Miligramos 1000 milligrams = 1 gramo 1 Kiligramo 1 kilogram = 2.2 libras 2.2 pounds 1 tonelada 1 ton = 10000 Hectogramos 10000 hectograms

Volumen volume Cúbico cubic Cinta métrica measuring tape

Here is your Costa Rican expression or tiquismo for this week:

“Cortar el rabo.” means to fire a person from their job (cut their tail). The correct Spanish

verb is despedir.

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16El Residente

Technical TTaalkkkby Ron Korzekwa

Computer Security in Not OptionalComputer security is no longer optional, peripheral, or a backburner issue. Most residents in Costa Rica understand property security. Many of us go through great lengths to ensure that our homes, vehicles and personal possessions are protected as well as possible. However, when it comes to computer security many of us ignore the potential for disaster. The number of people who rob personal property is usually limited by proximity. In other words, most thieves have to come to your property to rob it. This includes even your vehicle when you leave it unattended in a parking lot.

Computer thieves, many times called hackers, can live on the other side of the world. They don’t even have to leave their easy chair to rob their victim. The professionals even automate their search for prey through unattended computer programs. They can be having dinner at aunt Betty Lou’s house while their system searches out the next target. The number of these individuals who perpetrate these acts is only limited by a connection to the Internet, technical knowledge, and a desire to partake in criminal activity. I’ve heard people say “No one would be interested in what I have on my computer.” My response is “Really? No one cares that you access your bank account online, that you do credit card purchases over the Internet, or about the information you entered doing last years taxes electronically.” These, among others, are the things that can lead to serious losses or a bad case of identity theft.

Unsecured networks are also targets of unscrupulous individuals. Even with the best malware protection, an unsecured or lightly secured wireless network provides

endless opportunities for the “wardriver” are maybe even your neighbor. It isn’t just a matter of seeing what’s in that “shared folder.” What if someone tapped into your wireless network and emptied out someone else’s bank account? I often remind people that tracing the Internet Protocol address, provided by your Internet Service Provider, back to your computer is simple. The follow-up computer forensics may not reveal anything on your system but the suspicion remains.

Another area of concern is readily available Internet Cafes or other locations where you rent computer time. How sure are you that their systems and networks are secure? I found keyboard logger software on a computer at one of these locations. When I brought it to the owner’s attention instead of showing concern, he became irate. That left me with some serious doubts. By the way, the keyboard logging software (or hardware) can capture user-id’s, passwords, and much more.

Many people claim to be very computer knowledgeable; many even claim to be experts. I have worked with computer systems for 26 years, have a Bachelors degree in Computer Science and Systems Design, and have attained many certifications through companies such as IBM and Microsoft. I’ve held managerial and technical responsibility over large scale web sites where I’ve seen over a hundred thousand hack attempts a day. One thing I know is that there is no such thing as a computer expert. Rest assured that the expert mentality can lead to a false sense of security.

Recently I sat at a client’s office and watched over 700 hack attempts in less than 45 seconds. He thought he was safe because someone told him that just not using email on the system prevented potential problems. He is now more cautious about where he gets his computer advice.

Hacker tools, information, and all the necessary implements of computer security destruction are readily available. My belief is that you can protect yourself from the myriad of demented “Scriptkitties.” It is the true professional who has an amazing amount of technical savvy, time, talent, and an inclination to dedicate himself or herself to the nefarious activity of “hacking for profit” that concerns me. Please compute safely and wisely.

17March-April, 2007

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19March-April, 2007

In addition, has anyone forgotten that, immediately after these two previous housing price declines, the US economy experienced recessions in 1980-81 and again in 1990-91. What is different about this latest housing price boom is that it is many times greater in magnitude than any previous one. As one writer succinctly put it “The greatest housing boom in US history will ultimately become the greatest housing bust in history. The bust may take its own sweet time for the effects to be felt and perhaps years not months for prices to bottom out.” He further contends that: “Any investor who blithely assumes we have now borne anywhere near the full impact, is dangerously kidding himself”. One Federal Reserve President recently admitted indirectly that this unprecedented housing boom was ‘fuelled’ by the FED keeping monetary policy far too loose for far too long. Of course, the Wall Street gang and Beltway politicians were only too happy to cheer the FED as it “kept its foot on the monetary accelerator”. A couple of remarkable things about this huge housing boom are that since 2001: (a) a much higher percentage of jobs created were real estate related than ever before and (b) ‘shoddy’ home-lending practises abounded as never before.Some well respected, independent, knowledgeable professionals have also pointed out that the housing sector accounts for a major ‘chunk’ of US employment when one includes all the jobs from raw material acquisition and processing, to transportation, product distribution, property development, construction, finance, real estate marketing and sales, and so on.

These same independent professionals are of the opinion that consumers are less likely to continue to spend freely when the market value of their biggest financial asset (their home), is getting “hammered”. Therefore, because of the unprecedented dimension of this housing boom, they believe this housing slump will be the biggest in the last five decades, last longer, and be “bloodier” than most expect.

OTHER SIGNIFICANT ECONOMIC INDICATORS1. New Auto Sales & Production Another clear signal that the US economy is likely to experience a recession within the next year, is that all the major auto makers have announced double-digit sales declines for many consecutive months and are planning for production cuts well into 2007. Auto sales and production declines of this magnitude have happened before but again, only preceding recessions or very dramatic slowdowns.2. US Imports & Wholesale Inventories Very recently, it was reported that the US Trade Gap narrowed in November for the third consecutive month. The stories generated about this narrowing suggested it showed a strengthening of the US economy. However, it is my impression that the key changes are signs that the US economy is slowing down. You be the judge!

Dollars & $$ennsseeeby Alan Weeks

The Goldilocks ForecastThe majority of senior economists and investment managers from Wall Street to Washington seem to believe the current housing market decline is now bottoming out. On this assumption, they are forecasting that the US economy will experience a “Goldilocks” (not too hot, not too cold) economic slowdown (a soft landing) in 2007, not a recession. Some of us, however, do not believe this fairy tale.To be fair, we can all agree with the great US philosopher, Yogi Berra, that “Predictions are difficult, especially about the future”. For this reason, you are being invited to judge for yourself whether we are being pessimistic or simply realistic. And if we are being realistic, are the gangs on Wall Street and inside the Beltway, acting like ‘Pied Pipers’?We believe that long-term historical data can be very useful for predicting future trends. In other words, we do not subscribe to the theory that “It is different this time”.

SEVERE CORRECTION WARNINGMarc Faber(1), who predicted the stock market crash of 1987, warned very recently that “global assets are poised for a severe correction in the next few months, and emerging markets are the most likely to get kicked”But, this is contrary to the views of Strategists at 14 of the biggest Wall Street firms, who are all forecasting US stocks will advance in 2007. To this, Faber points out that the last time they were in complete agreement was when they all forecast gains in the US stock market in 2001. In fact, the overall market dropped 13% that year.

Because all these top Strategists were wrong that recently, it lends credence to contrarian viewpoints.

REAL ESTATE HISTORYNow, let us review again the historical housing market data presented by Dr. Robert Shiller(2) in his book called, “IRRATIONAL EXUBERANCE”, and in chart form. His chart clearly shows that, net of inflation, the US housing price gain over the 50 years to the end of 1999 was only 12% in total. The net gain over the next 5 years to the end of 2005 was 83%. In his book, Dr. Shiller reported that he could find no rational basis for this huge gain, and concluded it had to be based on speculation, and thus, is unsustainable.

Dr. Shiller’s chart also illustrates that, after the housing price ‘mini-bubbles’ peaked in 1979 and again in 1989, housing prices declined to below the long-term trend line, and took years to revert back to the norm. Continued on page 20...

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system, according to some knowledgeable observers.

Other experienced investment managers are very concerned that the excessive liquidity in global markets the last few years has driven all asset classes to new highs.

Mergers and acquisitions also reached record highs in 2006. These managers believe many of the acquiring companies are using excessive leverage. And, the debt they are taking on could lead eventually to massive defaults. Some have even likened this to the junk bond bubble era of irrational borrowing in the late 1970s, which eventually went bust.

As one Investment Company President put it: “It’s like a big keg of dynamite with a fuse. I don’t know when, but I think conditions exist for the explosion to occur eventually”.

WHY SO MUCH GLOBAL LIQUIDITY?

The huge rise in oil prices put a ‘gusher’ of revenues into the pockets of the oil producers, in Riyadh, Caracas, Moscow, Tehran, etc. Because their economies could not absorb all the revenues, they were recycled into the securities markets, pushing up prices of bonds, equities, real estate, and commodities, and also lowering bond and mortgage interest rates.

A few Central Bankers are beginning to catch on to the effects of this huge source of liquidity, which is totally outside their control. But, while some have come to recognize the impact of massive petrodollar inflows, Kevin Harrington(8) made the following much more pertinent point. “The world as a whole cannot become wealthier if oil exporters do”. He explains this phenomenon as simply the ‘siphoning’ of billions from strapped oil consumers to oil producers, who have no other use for the money but to funnel it back into the financial markets. “Bulls have ignored this fact”.

And, as stated by Fred Hickey, at the opening of this year’s Barron’s Roundtable discussion, “Goldilocks has imbibed on too much liquidity”. This is very likely a key reason why this housing ‘bubble’ is declining much more slowly than in the past. Another reason, of course, is that, unlike stocks that can be liquidated immediately, it takes a considerable length of time and the willingness to accept much lower prices, in order to sell homes now. However, the fact is that home prices are still well above the affordability level of most buyers.

GOLDILOCKS IS STILL DEFYING THE BEARS

Far too many economists, strategists, and investors seem to keep focusing on very short-term ‘blips’ in financial, economic, and monetary data and then try to equate these to trend changes. We believe the only way to see the ‘forest instead of the trees’, is to step back mentally, and take a much longer-term view of the situation.

We also believe it is different this time only in degrees. Let us review the key issues:

(a) US imports of oil, and industrial materials, such as copper and natural gas, declined again in November.

(b) US wholesale inventories grew more than expected, with a broad-based accumulation of stockpiles ranging from cars, to farm products, and petroleum.

3. US Housing Permits “Housing permits are down 31% year over year. In the past 40 years, whenever permits plummeted like this, we’ve always had a recession”, Fred Hickey(4)

stated. 4. Credit Card DebtPaper or Plastic? “Americans evidently are opting for the latter – not because they want to, but because they have to”, reported Randall Forsyth(5). “Borrowing on credit cards has shot up while the use of home equity as ‘automatic teller machines’ has dropped off precipitously. That would mark a reversal of American’s borrowing habits of recent years.”Perusing this same data, Stephanie Pomboy(6) stated: “The fact that consumers are reverting to plastic (the most usurious form of borrowing) would be troubling enough, but they are not borrowing to buy cars, boats and other fun stuff ……. She pointed out that the average consumer is now apportioning the largest share of his/her spending in US history to non-discretionary items (such as food, energy, medical, and debt services). “This hints at serious financial distress”, Ms. Pomboy concluded. 5. US Margin DebtUS Stock Market margin debt has now reached a record high, surpassing its 2000 ‘Bubble’ peak. This is another sign that the “speculative sap is rising”. 6. The Transport IndexThe Dow Transportation index has been ‘sagging’ recently. Because this should be a good gauge of current US supply and demand, it would appear to indicate that demand is ‘sagging’. GLOBAL BUBBLE WORRIESThe overheated real estate markets have prompted warnings of property price bubbles globally from Australia and Hong Kong, to Ireland, Canada, the US, and all points south.

How worried should we be about a collapse in real estate prices? Very, according to many economists, who directly link property values to economic prosperity, real or imagined. “Tamper with that feeling of prosperity”, they contend, and “watch consumer confidence drop off a cliff, along with consumer spending, and economic growth”. Wise money managers are recommending that investors short US bank stocks particularly regional banks, credit-card companies, and subprime lenders.

Already, major lending institutions such as HSBC & Freddie Mac, are starting to report higher loan losses. The anticipated longer and ‘bloodier’ housing decline could even shake the very foundation of the US financial Continued on page 21...

21March-April, 2007

1. This has been the largest liquidity bubble in US history. It has pumped up asset values enormously, but this phenomenon is not a net creator of wealth. 2. This has been the greatest housing boom in US history, and should ultimately become the greatest housing bust in US history. 3. As many more Americans come to realize the market value of their biggest financial asset (their home) is getting “hammered”, “consumer confidence will fall off a cliff”. 4. All other asset bubbles, including overvalued emerging market stocks, should suffer a significant correction. 5. Because this housing boom created far more new jobs than ever before in US history, the housing bust should prove very damaging to US employment across the nation. After re-examining all these facts and professional interpretations, we have concluded that the US economy, which has been driven for many years by consumer spending, is destined for a very severe and prolonged slump. And because the US economy has been an ‘engine’ of global economic growth, it is inevitable that the rest of the world’s economies will suffer a ‘cooling down’.

WHERE TO INVEST NOWIn my previous articles, I outlined the reasons why China should continue to be an engine of global growth. And, because Japan and the other Asian countries have become much more interdependent and less US-centric, the demand for oil, metals, and other commodities should continue for many years.

A much broader way to look for global investment opportunities is to ‘follow the money’.

There are huge infrastructure and/or plant construction projects underway globally including those in Canada, Panama, India, Dubai, and China. Moreover, the massive construction projects being undertaken in China and Dubai are each almost mind-boggling in scope. We believe all these huge projects should sustain demand for resources for years to come.

For example, the continuing construction of massive Tar-sands projects, Upgraders, and pipelines are underway in Alberta, Canada to help supply the huge US demand for oil. Please do not forget that energy imports now account for one quarter of the US Trade Deficit.

Massive investments have also just started in the US to produce replacements for the huge amount of oil now being consumed in American automobiles. This consumption is unsustainable because global oil production is forecast by the International Energy Agency and other independent sources to be about to peak, and to be in permanent decline very soon. (This could be a topic for my next article.)

Of course, political instability in the Middle East and elsewhere should continue to threaten supply disruptions, keeping upward pressure on oil prices.

For these reasons, long-term investment in quality, international oil and gas related stocks or funds, is still being recommended.

Another investment being recommended is to buy gold and other precious metal stocks or funds as a good way to take advantage of the impending US dollar decline. There are more than a dozen other reasons why this is a good time to invest in gold stocks or funds.

Finally, all the above information was ‘gleaned’ recently from books and reports by very experienced, well respected, professionals that were published in major international financial papers. These ‘pros’ provided logical interpretations of the relevance of much key economic and market data.

It is hoped that this review will prompt all investors to re-think their investment strategy for the future, given the probable consequences of a serious weakening of the US economy and the US dollar. After all, it is your own money, and your future ‘nestegg’ that is at risk.

For those who do not heed the strong warning, ‘a reality check is in the mail’

For details on the many references or for further information, please do not hesitate to contact Alan Weeks

at 256-5848 or by e-mail at: imccr2002@yahoo.com

22El Residente

Exchange rate of the Costa Rican ¢ to the US

DollarAugust 517.21

September 519.73

October 515.04

November 514.62

December 515.84

January 517.11

Basic Interest RateAugust 13.75 %

September 13.50 %

October 13.25 %

November 11.25 %

December 11.25 %

January 10.75 %

Exchange rate of other currencies to the US

DollarJapanese Yen 121.43

Swiss Franc 1.2522

Canadian $ 1.1823

Giro (DEG) 1.4902

£ Sterling 1.9529

Euro 1.2956

Mexican Peso 11.039

Korean Won 941.15

Danish Krone 5.7541Norwegian

Krone6.2975

Argentine Peso 3.1060

Colombian Peso 2,258.6

Brasilian Real 2.1267

Libor Rate1 month 5.3200%

3 month 5.3600 %

6 month 5.4000 %

12 month 5.4300%

Prime Rate 8.25 %

23March-April, 2007

Holidays Of Costa Rica

March 19th‘St. Joseph’s Day’

April 5th‘Holy Thursday’

April 6th‘Good Friday’

April 11th‘Battle of Rivas’

******************** A Touch of Wisdom

“He who has a why to live can

bear almost any how.”Friedrich Nietzsche

(1844-1900)

“Keep your eyes on the sun and you will not see the

shadows.”Australian aborigine saying

“No act of kindness no matter how small is ever wasted.”

Aesop (c.620-560BC)

********************

Quick Ones

Girl: You would be a good dancer except for two things. Boy: What are the two things?

Girl: Your feet.

My friend said he knew a man with a wooden leg named

Smith. So I asked him “What was the name of his other leg?”

Patient: Doctor, I have a pain in my eye whenever I drink tea. Doctor: Take the spoon out of

the mug before you drink.

The doctor to the patient: ‘You are very sick’

The patient to the doctor: ‘Can I get a second opinion?’

The doctor again: ‘Yes, you are very ugly too...’

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