Scott Oliver Interviews Wall Street Legend Henry Kaufman

Scott Oliver, author of How to Buy Costa Rica Real Estate Without Losing Your Camisa and Founder of WeLoveCostaRica.com, interviews Wall Street legend Henry Kaufman about Costa Rica real estate investing.  Mr. Kaufman is developing retirement communities in Santa Ana Costa Rica.

Kaufman claims that investing in Costa Rica real estate is currently more advantageous than in the United States.  He says blatantly that he is genuinely nervous about the state of the US economy.

Watch this very informative video interview here.

Much has been reported about the “new highway” that runs between the port/beach town of Caldera on the Central Pacific coast and Costa Rica’s capital city San José.  In fact, it has been somewhat of a running joke for 30 years among folks that live in the areas involved, and especially for those of us who work in real estate.  After going through decades of tangled bureaucracy, the highway project concession was granted in 2007 to the Spanish construction firm Autopistas Del Sol, and the progress has been staggering.

The advancement of the new highway is evident in Atenas and the excitement is building among residents.  The city phase of the new toll highway in Escazú is now completed and the coastal phase in Orotina is already paved.  There is an impressive amount of machinery rapidly paving the way from both ends and it looks like they may actually meet their deadline of opening in 2010.

This road will make traveling in Costa Rica exponentially more convenient for residents and tourists alike.  For residents, the highway puts our quaint agricultural town of Atenas a comfortable 30-minute drive to the Central Pacific beaches, and about 20 minutes to glamour shopping in Santa Ana and Escazú, CIMA Hospital, and the modern amenities and cultural attractions of the city.

For tourists, more day trips will not only be possible, but will be much more comfortable than the current route of winding mountain roads.  This should spur a whole new boom in tourism as the average time one needs in order to see Costa Rica will be greatly reduced.  The current average tourist stay in Costa Rica is 12 days, which is largely due to the fact that people need to account for road time to view the many wonders of Costa Rica. Now, a one-week stay, or even a long weekend can be realistically enjoyed.

The new highway will be fantastic for business as well.  Transportation times and costs will be reduced, as well as offer large vehicles the highways that they need to travel safely.  It should allow for more diversity of goods and services in previously remote areas.  In addition, there is expected to be a large reduction in the number of traffic accidents that are currently caused by overburdened vehicles traveling on mountainous, narrow, poorly lit country roads.

Because of the expected new convenience of the highway, young professionals who are currently living and working in the city will be drawn to tranquil western Central Valley towns like Atenas.  Safe areas around San José have become very expensive, especially if a young family desires a nice private yard or pool to enjoy.  An estimated 20-minute commute from Atenas to San José will allow these professionals to live in a more peaceful setting with convenient access to their workplace.

Large infrastructure projects like this highway tend to heap loads of investment potential on the areas that benefit from them.  Location, location, location is important to all real estate investors and projects like these create a location opportunity for savvy investors.  The towns expected to see the most benefit are Atenas, Ciudad Colon, Santa Ana, Orotina, and San Mateo.

The new San José—Caldera highway also presents a win-win situation for residents, tourists, and Costa Rican businesses.  The completion of this major new infrastructure will offer important connections that will enhance Costa Rica’s already surging interest among travelers and expats.

The only way to get these photos is by mountain bike or hiking.  Many thanks to our colleague, Rodrigo Mendez, for trekking 40 kilometers on his mountain bike to get these wonderful photos.  Readers can follow the progress of the San Jose/Caldera highway at the official highway website http://www.autopistasdelsolcr.com/.

Much has been reported about the “new highway” that runs between the port/beach town of Caldera on the Central Pacific coast and Costa Rica’s capital city San José.  In fact, it has been somewhat of a running joke for 30 years among folks that live in the areas involved, and especially for those of us who work in real estate.  After going through decades of tangled bureaucracy, the highway project concession was granted in 2007 to the Spanish construction firm Autopistas Del Sol, and the progress has been staggering.

The advancement of the new highway is evident in Atenas and the excitement is building among residents.  The city phase of the new toll highway in Escazú is now completed and the coastal phase in Orotina is already paved.  There is an impressive amount of machinery rapidly paving the way from both ends and it looks like they may actually meet their deadline of opening in 2010.

This road will make traveling in Costa Rica exponentially more convenient for residents and tourists alike.  For residents, the highway puts our quaint agricultural town of Atenas a comfortable 30-minute drive to the Central Pacific beaches, and about 20 minutes to glamour shopping in Santa Ana and Escazú, CIMA Hospital, and the modern amenities and cultural attractions of the city.

For tourists, more day trips will not only be possible, but will be much more comfortable than the current route of winding mountain roads.  This should spur a whole new boom in tourism as the average time one needs in order to see Costa Rica will be greatly reduced.  The current average tourist stay in Costa Rica is 12 days, which is largely due to the fact that people need to account for road time to view the many wonders of Costa Rica. Now, a one-week stay, or even a long weekend can be realistically enjoyed.

The new highway will be fantastic for business as well.  Transportation times and costs will be reduced, as well as offer large vehicles the highways that they need to travel safely.  It should allow for more diversity of goods and services in previously remote areas.  In addition, there is expected to be a large reduction in the number of traffic accidents that are currently caused by overburdened vehicles traveling on mountainous, narrow, poorly lit country roads.

Because of the expected new convenience of the highway, young professionals who are currently living and working in the city will be drawn to tranquil western Central Valley towns like Atenas.  Safe areas around San José have become very expensive, especially if a young family desires a nice private yard or pool to enjoy.  An estimated 20-minute commute from Atenas to San José will allow these professionals to live in a more peaceful setting with convenient access to their workplace.

Large infrastructure projects like this highway tend to heap loads of investment potential on the areas that benefit from them.  Location, location, location is important to all real estate investors and projects like these create a location opportunity for savvy investors.  The towns expected to see the most benefit are Atenas, Ciudad Colon, Santa Ana, Orotina, and San Mateo.

The new San José—Caldera highway also presents a win-win situation for residents, tourists, and Costa Rican businesses.  The completion of this major new infrastructure will offer important connections that will enhance Costa Rica’s already surging interest among travelers and expats.

The only way to get these photos is by mountain bike or hiking.  Many thanks to our colleague, Rodrigo Mendez, for trekking 40 kilometers on his mountain bike to get these wonderful photos.  Readers can follow the progress of the San Jose/Caldera highway at the official highway website http://www.autopistasdelsolcr.com/.

Much has been reported about the “new highway” that runs between the port/beach town of Caldera on the Central Pacific coast and Costa Rica’s capital city San José.  In fact, it has been somewhat of a running joke for 30 years among folks that live in the areas involved, and especially for those of us who work in real estate.  After going through decades of tangled bureaucracy, the highway project concession was granted in 2007 to the Spanish construction firm Autopistas Del Sol, and the progress has been staggering.

Escobal to Atenas is Paved

The advancement of the new highway is evident in Atenas and the excitement is building among residents.  The city phase of the new toll highway in Escazú is now completed and the coastal phase in Orotina is already paved.  There is an impressive amount of machinery rapidly paving the way from both ends and it looks like they may actually meet their deadline of opening in 2010.

This road will make traveling in Costa Rica exponentially more convenient for residents and tourists alike. For residents, the highway puts our quaint agricultural town of Atenas a comfortable 30-minute drive to the Central Pacific beaches, and about 20 minutes to glamour shopping in Santa Ana and Escazú, CIMA Hospital, and the modern amenities and cultural attractions of the city.

For tourists, more day trips will not only be possible, but will be much more comfortable than the current route of winding mountain roads.  This should spur a whole new boom in tourism as the average time one needs in order to see Costa Rica will be greatly reduced.  The current average tourist stay in Costa Rica is 12 days, which is largely due to the fact that people need to account for road time to view the many wonders of Costa Rica.  Now, many more attractions can be seen in the same period of time.

Paving Crew Hard at Work

The new highway will be fantastic for business as well.  Transportation times and costs will be reduced, as well as offer large vehicles the highways that they need to travel safely.  It should allow for more diversity of goods and services in previously remote areas.  In addition, there is expected to be a large reduction in the number of traffic accidents that are currently caused by overburdened vehicles traveling on mountainous, narrow, poorly lit country roads.

Drainage in and Ready for Paving

Because of the expected new convenience of the highway, young professionals who are currently living and working in the city may be drawn to tranquil western Central Valley towns like Atenas.  Safe areas around San José have become very expensive, especially if a young family desires a nice private yard or pool to enjoy.  An estimated 20-minute commute from Atenas to San José will allow these professionals to live in a more peaceful setting with convenient access to their workplace.

New Highway Map in Red

Large infrastructure projects like this highway tend to heap loads of investment potential on the areas that benefit from them.  Location, location, location is important to all real estate investors and projects like these create a location opportunity for savvy investors.  The towns expected to see the most benefit are Atenas, Ciudad Colon, Santa Ana, Orotina, and San Mateo.

The new San José—Caldera highway also presents a win-win situation for residents, tourists, and Costa Rican businesses.  The completion of this major new infrastructure will offer important connections that will enhance Costa Rica’s already surging interest among travelers and expats.

The only way to get these photos is by mountain bike or hiking.  Many thanks to our colleague, Rodrigo Mendez, for trekking 40 kilometers on his mountain bike to get these wonderful photos.  Readers can follow the progress of the San Jose/Caldera highwayat our Costa Rica photo blog at the official highway website.

Costa Rica Home Show

Paradise Profits will be present at the 2009 ExpoCasa along with their Costa Rica Environmental Development Group which includes green building products and sustainable development team.

The 6th annual Expo Casa will be returning to Costa Rica this year from Aug. 5 to 9 at the Centro Ferial PIMA in Cenada, Heredia.  The event is the largest show of its kind in Costa Rica, expecting 15,000 visitors over the five days.

Potential real estate buyers, investors or developers will find a wide range of services presented in one venue:  building materials suppliers, architects, builders, interior design professionals, experts in environmental construction, real estate agencies, relocation services, as well as legal and financial services and educational materials such as books about investing in Costa Rica real estate.

The PIMA center offers ample parking, and the show coordinators have provided large, attractive, and furnished modules for visitors to feel comfortable when speaking with presenters, or even to negotiate a deal.  The event has proven to be a massive success in the past and is expected to have its largest turnout of both expositors and visitors.

Schedule:
Wed. Aug 5:  Grand Opening 1 p.m. Inauguration 5 p.m.
Thursday and Friday Aug. 6 & 7:  1 p.m – 10 p.m.
Saturday Aug. 8:   10 a.m – 10 p.m.
Sunday Aug. 9:  10 a.m. – 8 p.m.

Directions: If traveling west from San Jose:  use exit for Mall Real Cariari, continue toward Barreal Heredia, one km turn right in front of large company building of URSA.  Enter PIMA/Cenada.

If traveling east from the airport:  use exit for Mall Real Cariari, cross over bridge and continue straight toward Barreal Heredia, one km turn right in front of large company building of URSA.  Enter PIMA/Cenada.

Fees:
Entrance is free.
Parking 1,500 colones

For more information, you may contact the organizers at: Congrex de Costa Rica
Tel. 506 2204-7204  2588 2439 / (506) 2588 2440• Fax: (506) 2588 2442 •
E-mail: Ivannia.mora@congrex.com

Compressed Earth Block

Costa Rica, recently voted the “greenest and happiest” nation in the world, is poised to become a model for sustainable development.  It is no secret that the development boom has not always been good for the environment, especially when the typical construction is done with concrete block and steel rebar which is used to meet earthquake-proof codes and because it is what the local builders are accustomed to using.  However a new company, Eco-Bloques, has recently landed in Costa Rica with a revolutionary green building product, Compressed Earth Blocks (CEB) which can be made on-site with local materials.

Compressed Earth Blocks are made with abundant local materials of sand, clay, and aggregate material that can be found at just about any construction site.  The earth that is moved when clearing home sites is now put to use instead of wasted, or ending up as runoff into local rivers and streams.  It is the ultimate sustainable local building material and it costs less than concrete block.

Concrete has the highest embodied energy of any traditional building material.  Actually, concrete itself has an inherently low embodied energy, but it must be quarried, produced and transported.  Additionally, it is the most widely-used material in existence, thus producing a high net effect of emissions.  So widespread is the use of concrete, that nearly 2 tons is produced for every person on the planet.

Building Materials Embodied Energy

The use of modern Compressed Earth Blocks seems to have originated in the 1950s in South America, but not until the 1980s did many European countries provide standards which enabled widespread acceptance and use.  Earth blocks are exceptionally strong, always exceeding 1,000 PSI.  CEB constructions will last centuries vs. today’s several-decades maximum.  One company has been making machines for 20 years, and is now in 70 countries, with over 2,000 machines in operation.

CEB Made On-site

CEB also capitalizes on thermal mass which allows for heat retention in winter and heat release in summer. CEB structures are virtually soundproof and are thus ideal for urban environments, also providing these environments with more pleasing aesthetics and increasing overall temperature stability.   Earth blocks can be used to build green homes, condo buildings, landscape walls, roofing tile, floor tiles, and brick road pavers.

CEB Floor Tiles

Compressed Earth Blocks will save builders and developers money, and gives their projects an authentic green appeal.  As the majority of people become more conscious of sustainable living, this green building product will give developers the power to market sustainable elements in their project.  Developers will also experience savings reflected in the cost-per-block and the lack of transportation costs, while sustainably allocating waste soil on the project site.

Saving money and time, building green, and not giving up quality, make using Compressed Earth Blocks a no-brainer and a win-win for everyone.

Compressed Earth Blocks will be on display by Eco-Bloques at the ExpoCasa August 5th – 9th in Cariari Costa Rica.  For more information or a quote for your project in Costa Rica, please email us at paradiseprofits@gmail.com or visit our website.

Anyone who has done basic research on Costa Rica knows that the country is a world leader in the green revolution.  With over 25% of the land preserved and 95% of the electricity produced with renewable resources, this famously peaceful democracy has been recently voted the “greenest and happiest” nation on Earth by the independent organization New Economics Foundation.  As a politically and economically stable “developing” country, Costa Rica may be one of the safest and most opportune countries to invest in.

Costa Rica’s government, committed to becoming carbon neutral by 2021, has launched very attractive incentives for sustainable development projects.   These incentives have spawned many green investment opportunities into fields like forestry, renewable energy generation, biofuel production, sustainable building, landfill biomass extraction, and many more.

Reforestation Investments

Reforestation and sustainable timber has long been a focus in Costa Rica.  Investing in such projects has provided incentives for residency, and now monetary compensation is available from the Costa Rican government.  A forest preservation project may receive up to $300 per year, per hectare; and a reforestation project is eligible for $150 per year, per hectare.  The legal process to qualify for these credits costs around $5,000 and takes less than 4 months to complete.

In addition, many private forestry and reforestation projects are producing certified emission reduction (CER) credits, also known as carbon offset credits.  The Costa Rica government also engages in this practice for its vast forest reserves.  These projects are offering wholesale investments into their programs, and then selling the carbon offsets credits on the open markets for very healthy returns for their investors.

Wind Power Development

Until recently, the government-run monopoly I.C.E (Institute of Costa Rican Electricity) made it very difficult for private developers to produce electricity.  Since the ratification of CAFTA (Central American Free Trade Agreement), Costa Rica has already deregulated telecommunications and is now planning to open the electricity market.  New incentives are being offered to developers to build renewable energy plants of 7 megawatts or larger.  Once their plans are approved, developers will be able to import all necessary materials “duty free,” and may be exempt from paying operating taxes for a period of time.  These projects are also eligible for creating certified carbon offset credits with substantial value, thus making them even more attractive to investors and developers.

Geothermal Power Plants

The production of biofuels is yet another industry where Costa Rica is providing similar tax-based incentives to entrepreneurs.  Biodiesel production is expected to be the leading biofuel, as the country produces a large supply of palm oil.  Jatropha, a new high-yielding oil crop, is being grown and studied in Costa Rica for future use in biodiesel production.  Additionally, sugar-based ethanol production is incentivized as well and has great potential.

Finally, revolutionary methane extraction techniques are being developed for landfills, along with garbage reduction and recycling technology that offers another exciting opportunity for green development in Costa Rica.  One firm has applied for permissions to implement such a plan for some Costa Rica landfills.  This technique reduces actual landfill garbage by 90%, removes all recyclable materials, and produces fuel pellets that can be used for electricity production, while creating valuable carbon offset credits.

With the prospect of Cap and Trade legislation being passed in the United States and a president who is pushing G-8 members to sign on to reduce global carbon emissions, these green development projects appear to be solid investments with terrific potential for high yields.  These environmentally friendly projects, when executed responsibly, represent the emerging concept of Conscious Capitalism.

Email us for more information about specific investment opportunities:  ParadiseProfits@gmail.com

President Oscar Arias signed the law over a year ago to deregulate the communications industry.  Since then, SUTEL (Superintendent of Telecommunications) has approved 7 companies to begin providing competing internet service throughout Costa Rica.

The companies to achieve licensing are CRWIFI S.A., Dodona SRL, Intertel Worldwide S.A., Worldcom de Costa Rica S.A., Call My Way NY S.A., Redes Inalambricas de Costa Rica S.A., and JASEC.

The companies will now be allowed to operate in competition with long-standing state monopolies Costa Rican Electricity Institute (ICE) and Radiographica Costarricense S.A. (RACSA).  This competition should bring a rush of new technology and more expansive coverage throughout Costa Rica.

The telecommunications and cell service providers have also been deregulated and are expecting to begin offering competing services immediately.

International Airport in Liberia Costa Rica

The Tico Times reported that President, Oscar Arias, signed a contract to build a new $35 million terminal at Liberia’s Daniel Oduber International Airport, in the Guanacaste province.

Solarium Commercial Complex

The new terminal is expected to serve 1,500 additional passengers per day in a multi-level facility of 23,000M2 of new construction.  President Arias announced that the project will be fast-tracked with hopes of inaugurating the new building before he leaves office.

The international airport has already become a popular airport, receiving nearly 454,693 passengers in 2008.  This new expansion is on the tail of a recent $6.7 million expansion by MOPT of airplane hangar space.

Other modern commercial growth has been exploding in the Liberia area including the 1 million square-meter mega-complex Solarium (http://www.solariumcr.com/main.php) and Latin America’s best private hospital CIMA (www.hospitalcima.com) is building a new hospital in Liberia.

CIMA Hospital San Jose

CIMA Liberia will be Guanacaste’s first state-of-the-art private hospital and is estimated to be completed by early 2011.

Already this year, Costa Rica was ranked the 8th Most Stable Country in the world by The Economist, the 5th Cleanest Country in the world by Yale’s Environmental Performance Index (EPI), the first country to be designated a “BioGem” by the Natural Resource Defense Counsel.   Now, it has been recognized as the “Greenest and Happiest” country on the Planet by the British independent research group New Economics Foundation.

The report, The Happy Planet Index 2.0: Why good lives don’t have to cost the earth, published Saturday 4 July 2009, by NEF (the new economics foundation) presents the results of the second global study of the Happy Planet Index (HPI).  The new Index is based on comprehensive data for 143 countries around the world, representing 99 per cent of the world’s population, and Latin American nations featured nine of the Top 10 spots.

Costa Rica Pristine Beaches

In a report released Saturday, the group ranks nations using the “Happy Planet Index,” which seeks countries with the most content people.  In addition to happiness, the index by the New Economics Foundation considers the ecological footprint and life expectancy of countries.

“Costa Ricans report the highest life satisfaction in the world and have the second-highest average life expectancy of the new world (second to Canada),” the organization said in a statement.

They “also have an ecological footprint that means that the country only narrowly fails to achieve the goal of … consuming its fair share of the Earth’s natural resources.”

Costa Rica Waterfall

The Central American country, tucked between Nicaragua and Panama, touts its lush rain forests and pristine beaches. Its president, Oscar Arias Sanchez, won the Nobel Peace Prize in 1987 for trying to help end civil wars in several Central American countries.

The runner-up was the Dominican Republic, followed by Jamaica, and Guatemala.  The United States sunk to the 114th spot, while Britain ranked mainly due to its hefty consumption and massive ecological footprint.  The United States was greener and happier 20 years ago than it is today, the report said.

“As the world faces the triple crunch of deep financial crisis, accelerating climate change and the looming peak in oil production, we desperately need a new compass to guide us,” said Nic Marks, founder of the foundation’s center for well-being.

The world is finally realizing Costa Rica as more than just a vacation spot.  Costa Rica’s excellent stance on the environment, political and economic stability, perfect climate, and lower cost of living continue to draw foreign retirees from across the globe.

To read the actual study please visit:

http://www.neweconomics.org/gen/happyplanetindex040709.aspx

Costa Rica Culture

FOR MORE INFO Email us at - CRFirst@yahoo.com

Greenhouse and Organic Nursery

We are experiencing an increasingly uncertain world with the recent financial crisis and collapse of the world markets, the 2008 oil price shocks that sent energy and food costs to the stratosphere, the rapid decay of our ecosystem, and depleting fresh water supplies.  Many experts predict more oil shocks in the near future due to the statistics behind “Peak Oil” and the declining value of the US dollar.
According to environmentalists, human population growth has already far exceeded the natural carrying capacity of planet Earth, making us ever more dependent on fossil fuels for our modern civilization to function.

Although there are many reasons given for the recent global economic meltdown, $147 per barrel oil as a cause has been rarely discussed.  The entire world economy depends on oil, and this fuel of life went from $17 per barrel in 2001 to $147 in 2008.  This, in my opinion, was the primary cause of the global economic bankruptcy, not the 5% of bad mortgages in the US.

Organic Plant Nursery at Sustainable Community

The large multinational agriculture corporations must use heavy doses of fossil fuel based fertilizers and pesticides to grow crops on otherwise unfertile soil, while using massive diesel tractors to plant and harvest, only to transport the crops thousands of miles to big box stores.  No wonder the cost of rice doubled in 2008 along with oil.

It is also estimated that 70% of the world’s fresh water supply is used for irrigation and other agribusiness.  This system is highly unsustainable and is likely to experience further problems as oil and water become less available and more expensive.  The US and other parts of the world have made a conscious effort to increase focus on local food production to lesson the impact of future oil shocks.

Sustainable Living in Costa Rica

Costa Rica is well positioned to weather any storm caused by future increases in the price of oil.  Costa Rica produces over 95% of its electricity through renewable means like hydroelectric, geothermal, and wind power.  Costa Rica is considered a “BioGem” according to the Natural Resource Council, a place where 27% of the land mass is reserved (the world leader) and local food production is overflowing.  Ranked as the 5th most environmentally clean country by Yale University’s Environmental Performance Index (EPI), Costa Rica has committed to becoming the first carbon neutral country by 2021.

Costa Rica is fast becoming a highly desirable location for those seeking to live a sustainable lifestyle in comfort.  An intelligently designed new sustainable community is now fully-titled and available for purchase.  Enjoy healthy living with food, energy, and water security in this new permaculture community in San Mateo, Costa Rica.

Permaculture Community in Costa Rica

Located on the ultra-clean Rio Machuca in San Mateo, which is on the Western edge of the Central Valley between Atenas and Orotina.  The community is only 25 minutes to central Pacific beaches, 25 minutes to Atenas, and 15 minutes to the new highway.  San Mateo is a traditional small agriculture town with a nice central park and all basic services.

The community offers 42 titled lots for eco-home sites with extensive organic gardens, fruit & nut trees, aquaculture, plenty of fresh water, and alternative energy designs.  It’s a place where the “community” aspect is still important for people to live a healthy and sustainable lifestyle, celebrating food, music, the arts, and Costa Rican history, culture and traditions.

Aquaculture Tilapia and Clam Ponds

Food Security:  A greenhouse, nursery and organic gardens are built and fully operational with 100s of varieties of organic fruits, nuts, vegetables, herbs, medicinals, teas, which are planted and growing throughout the community; including mangos, oranges, papayas, bananas, plantains, cashews, almonds and much more.  In addition, fresh organic eggs and chicken meat are available, and an extensive aquaculture system with Tilapia and fresh water clams and shrimp is fully operational.  The center pavilion will have community food processing and storage facilities.

Waterfall to Aquaculture Ponds

Water Security:  A potable water well with two large water storage tanks is in place to supply drinking water to the home sites. The community is blessed to have multiple year-round fresh water streams and to border the Machuca River which has many waterfalls and swimming holes.   In addition, an ecological storm-water management pond system is in place, and home designs are planned with rainwater collection for dry-season irrigation.

Energy Security:  Homes will be built with solar power systems and propane for cooking.  The developer is also exploring the possibility of a small hydroelectric plant.

Site Plan of Costa Rica Sustainable Community

The 42 residential lots average 2000M2 (1/2 acre) in size and there is also a titled and permitted 2 acre eco-hotel lot. Lot prices range from $80,000 – $130,000.  Turnkey off-the-grid green homes built to your design for $90/sf.

This is an excellent opportunity to retire to a sustainable paradise where residents will experience the ultimate freedom of living off-the-grid in harmony with nature.

During the recent financial crisis from October ‘08 — March ‘09, the world economy deflated.  The price of commodities fell, most notably oil, and the strength of the U.S. dollar soared.   “Cash was King” during these five months as quality assets became bargains, and valuations in the stock market finally got down to reasonable levels.

The U.S. passed huge stimulus legislation, the banks’ toxic assets were “written off,” and the Fed began to print money.  The cash Kings on the sidelines re-entered the stock market along with some stimulus money, causing the markets to climb 40% from their March lows.  Inventories of goods left over from the deflation are slowly being depleted, consumer confidence is returning, and the policy-makers are claiming that “green shoots” are sprouting up in the economy.

However, the fundamentals paint a vastly different picture.  The barely existent U.S. manufacturing base was further devastated by the bankruptcy of the car industry, and the entire economy is still bleeding jobs.  The gutted financial services industry, which represented 40% of the U.S. economy, is being propped up by a “surge” of monopoly money.

It is estimated that the U.S. national deficit will reach 100% of GDP ($13.5 trillion) very shortly.  This says nothing of the Goliath-sized unfunded liabilities like Social Security and Medicare, or the massive personal and corporate debt lingering.  It seems the only jobs created so far are at the Federal Reserve printing presses, and bond salesmen at the State Department. China now holds nearly $800 billion in Treasury notes and the interest paid by the U.S. has climbed from 2.75% to nearly 4% in the last few months.

It does not take an economist to see that the U.S. dollar bubble is doomed, and the signs of weakening have already begun.  The euro and Canadian dollar are trading at near record levels against the U.S. dollar, gold is approaching $1,000/ounce, and oil is around $70/barrel.  In an oil-based economy, we can expect severe price hikes in gasoline and food right when the majority of workers are already suffering and no longer have access to easy credit.

The Federal Reserve may be forced to raise interest rates while the economy is still declining.  This action, coupled with resistance from Treasury investors (China), may cause hyperinflation, or, at best, stagflation.  Either way, the U.S. dollar is traveling down a bumpy road, which may be leading to a cliff.  So, the economic “green shoots” may die before they flower because monopoly money makes a bad fertilizer when the soil has already been leeched to the level of desertification.

Cash is no longer King as the dollar continues to lose strength.  Oil has doubled from its recent lows, which will eventually translate into real world evidence of your declining purchasing power at the pump or the grocery store.  It is time to move your dollars into assets like desirable foreign real estate, commodities, and foreign currencies.

The U.S. dollar is still very strong in Costa Rica as its exchange rate with the colón traditionally lags behind world currency markets. Costa Rica represents an excellent place to move cash into solid assets like real estate.  Real estate in Costa Rica is not driven by job markets and bank financing like in North America, but by foreigners who desire a comfortable retirement home or a solid investment in a political and ecological paradise.  Canadians and Europeans now have very favorable exchange rates to further enhance this opportunity.

Costa Rica continues to win praise despite the negative global news.  Costa Rica has been recently named the 8th most stable country in the world by the Economist, and the 5th cleanest country in the world by Yale University’s Environmental Performance Index (EPI).  Foreign retirees and young professionals alike are finding stability and sustainability in Costa Rica during these tumultuous times.