Wake Up, Wake Up, Wake Up

Day 256 Thursday (Jueves) - Panama City

Time to kick it back, it is Thursday you know.  Seemed we ran a bit ragged yesterday for some reason. I guess that is OK once in a while. Looking forward to the BBQ Market later today as they have an Open House serving up some delicious meats grilled on Webers. I am all over this.

The Sovereign Man - Simon Black has been on a great roll lately with some of his posts. I love the history of what is going on and Simon has been writing about it so I like to share his thoughts once again. Take a look and Thanks Simon.

In Medieval Europe when most people were living short, brutish lives wallowing in muddy serfdom, there was one city that served as a shining economic beacon for the rest of the continent: Venice.

At the time, Venice was one of the richest places in the known world, underpinned by its dominance in trade and the upward mobility of its citizens.

The concept of what we know today as "America" was alive and well in Venice during the Middle Ages; Venice was a place where, with guts, hard work, and a little bit of luck, you could become very wealthy and live the Venetian Dream.

The modern Limited Partnership structure, in fact, is derived from an early Venetian model called the 'commenda', a sort of special purpose vehicle for trade missions.

A standard commenda involved young entrepreneurs with a lot of energy but no capital partnering with older veterans with a lot of capital but no energy. The old guys would finance a trade mission to Asia, and the young guy would head off to foreign lands to make money.

If/when he returned, they would split the profits, the young guy receiving 25% to 50%.

A lot of people became very wealthy through this model, and even the poorest serf could come to Venice and rise up in social and financial status.

As you could imagine, though, they managed to find a way to screw it up.

In the early 1300s, the ruling elite eliminated the commenda structure that had made so many people so much money. Shortly afterward, the state started charging exorbitant taxes to merchants and nationalizing trade.

A police force was introduced in 1310 for the first time ever... not to protect the people from criminals, but to protect the criminals (government) from the people.

It didn't take long for Venice to decline into insignificance. Any opportunities to create wealth and live prosperously vanished as Venetian politicians engaged in the wholesale destruction of their economy, the livelihoods of its participants, and the 'Venetian Dream.'

With 20/20 hindsight, we can look back upon medieval Venice and pinpoint the early 1300s as the turning point to rapid decline... when there was a great unraveling of economic foundations and personal freedom.

It certainly makes one wonder whether future historians will look back upon this period in Western civilization and draw the same conclusion.

While I'm no fan of economist Joseph Stiglitz or the neo-Keynesian ideals he espouses, his new book proves this point more than just about any other recent work.

In The Price of Inequality, Stiglitz provides copious data showing that individuals in the United States now have a lower likelihood of moving up in social/financial status than any other developed country in the world.

This fact is reinforced by the Federal Reserve's most recent Survey on Consumer Finances, which showed that median US household net worth fell nearly 40% from 2007 to 2010.

This is the natural effect when you base an entire system on the whims of a very small elite that has awarded itself the ability to spend recklessly, rack up unsustainable levels of debt, and conjure money out of thin air.

As in Venice before them, US politicians have been engaging in the wholesale destruction of their economy, the livelihoods of its participants, and the American Dream.

Mission accomplished.

It starts: the government's plan to steal your money

Day 255 Wednesday (Miercoles) - Panama City

I was reading a very interesting article yesterday that I felt compelled to share as it was pretty disturbing to see how governments can and will treat their citizens in times of financial crisis. Yes there is still a crisis happening and the politicians of today are on a money grab to keep themselves in business.  It seems funny to me that the things that governments do would put a private business man or woman in jail.

Read with caution and I hope you have the stomach for it. The below is courtesy of our friend Simon Black, Senior Editor, SovereignMan.com

Date: June 12, 2012 Reporting From: New York City 

There are consequences to being flat broke.
There are consequences to investing any level of confidence in a financial system underpinned by debt and the creation of paper currency.
There are consequences for ignoring reality and pretending that everything is normal.


This is one of them: European officials yesterday flat out admitted that they were discussing rolling out a series of harsh capital controls across the continent, including bank withdrawal limits and closing down Europe's borderless Schengen area.


Some of these measures have already been implemented sporadically; customers of Italian bank BNI, for example, were all frozen out of their accounts starting May 31st upon the recommendation and approval of Italy's bank regulator. No ATM withdrawls, no bill payments, nothing. Just locked out overnight.


In Greece, the government has taken to simply pulling funds directly out of its citizens' bank accounts; anyone suspected of being a tax cheat (with a very loose interpretation in the sole discretion of the government) is being releived of their funds without so much as administrative notification.


It's no wonder why, according to the Greek daily paper Kathimerini, over $125 million per day is fleeing the Greek banking system.
European political leaders aim to put a tourniquet on this wound in the worst possible way.


So what are capital controls?


Simply, capital controls are policies which restrict the free flow of capital into, out of, through, and within a nation's borders. They can take a variety of forms, including:
- Setting a fixed amount for bank withdrawals, or suspending them altogether
- Forcing citizens or banks to hold government debt
- Curtailing or suspending international bank transfers
- Curtailing or suspending foreign exchange transactions
- Criminalizing the purchase and ownership of precious metals
- Fixing an official exchange rate and criminalizing market-based transactions


Establishing capital controls is one of the worst forms of theft that a government can impose. It traps people's hard earned savings and their future income within a nation's borders.
This trapped pool of capital allows the government to transfer wealth from the people to their own coffers through excessive taxation or rampant inflation... both of which soon follow.


The thing about capital controls is that they're like airline baggage fees; ultimately, all governments want to do it, they're just waiting on the first guy to impose them so that they can shrug their shoulders, stick it to the people, and blame 'industry standards'.


Moreover, capital controls were a normal part of the global economic landscape for most of the 20th century, right up to the 1970s. It's been a long time coming for governments to return to that model.


Since the inception of this letter, it has been a constant theme for us to talk about the increasing threat of capital controls. Your money, your savings, your livelihood are all under attack by insolvent governments, and it's critical to take steps to reduce your exposure.
When European financial leaders all openly admit that they're making plans to establish continent-wide capital controls, it really begs the question-- what additional warning sign does one need?
The dominos have already started falling. Iceland. Ireland. Greece. Spain. Portugal. Italy. Cyprus. Soon even France and the rest of Europe. And it will come to the United States as well. There are over 15 trillion reasons why.

Panama Visa's - Executive Order 343

Day 254 Tuesday (Martes) - Panama City

Interesting how Panama has shown open arms to 22 different "friendly" countries and their citizens to come to Panama, become a permanent resident, and work if you want to. Executive Order 343 which controls their immigration law has added a subsection which makes it extremely easy to stay here permanently - Legally. Here is the list of "friendly" countries.

Germany, Argentina, Australia, Austria, Brazil, Belgium, Canada, Spain, the USA, Slovakia, France, Finland, the Netherlands, Ireland, Japan, Norway, The Czech Republic, Switzerland, Singapore, Uruguay, Chile and Sweden.

We sat with an attorney yesterday here in Panama to go over this law, as much has been written about it since it became real on May 16, 2012. We wanted verification of the process, what was needed and how much it costs, what if any ramifications, etc..  So here is a simple list.

1) Police Record from where your from and notarized by Panama Consulate from where you are from
2) 3 Passport sized photos
3) Some utility bills showing the government that you have been here already legally. (If you are just beginning to come here then of course this will not apply - but it sure does help your cause)
4) One bank statement showing at least 4 digits in the account to show you can self-sustain (to me this one seems low as how can anyone just have 1-2 or 3 thousand in the bank and live) but that is the law
5) If married a signed letter of responsibility saying you will take care of your spouses expenses (remember Panama does not have people on the government doles handing out money)
6) Fill out the immigration application

All of the above needs to be submitted along with a copy of your current passport all in one package to immigration along with some money. Here is what we know so far about the expenses involved.
1) $1050 each person
2) $8.00 for each page that needs to be officially stamped in your file by the government here (I do not have an accurate page count yet)
3) Then what ever fee your attorney charges for his/her time

The immigration process can take months, maybe more. Once you submit your completed file you will receive a Temporary Resident Card which will stay active until you receive approval or denial of your permanent request.

Price match aisle 3

Day 253 Monday (Lunes) - Panama City

Love sharing cost of items as it is always a major factor when moving some place different.

The items pictured cost $3.20 in total. Purchased at a store called the number two meat store on Porras ave.

20 cents each orange

67 cents per lb of onions

1.20 per lb of tomato

As an added note, my lovely wife needed a new crown on one of her teeth, in the state of Florida this would run about $1400, here in Panama $750.

Cafe con Leche anyone?

Day 252 Sunday (Domingo) - Panama City

Coffee is a staple in our home as I am sure it is in many others. And some days, like today, a few cups to kick start does the body good.  Panama grows a lot of its own coffee in the mountainous areas of Chiriqui Province, and it also imports its fair share from places around the globe.  I will say that the Panama grown coffee is excellent and of course the price is right.

We drink a lot of coffee so the taste has to be there. We grew up drinking Dunkin Donuts coffee and that is excellent also, and yes my New England friends, Panama does run on Dunkin too. But we choose to stick with native coffee, why else did we move here? The coffee is smooth and tasty, drop in a little milk (cream is not big here unless you like that package dry powder crap) and you are on your way to start any day.
 Let's have a quick Panama coffee lesson to learn how the best coffee is produced here in Panama.


Boquete is to coffee as Bordeaux is to wine. Panama's coffee has been considered to be the best coffee in the world for 3 years in row. So. it would be a little bit strange if you came to Boquete and you left without visiting a coffee plantation, don't you think? Prepare your taste buds for an explosion of flavors!
Several of the world's best coffee producers give you the unique opportunity to have a complete coffee tour through their coffee farms, processing factories ("beneficio"), roasting plants and tasting facilities. Café Ruiz begins their tour at their coffee farm in Palmira, Kotowa Coffee has its coffee plantation in the Palo Alto region where you will have a chance to see a coffee mill that is almost 100 years old, and both Café Suárez and Finca Lérida run their coffee tours at their farms in Alto Quiel.
At a coffee tour in Panama you will learn everything about the coffee process, from when the coffee tree is planted and starts growing, until the way coffee is brewed for you to drink it. You will be able to appreciate the importance of the Ngöbe Buglé indigenous that hand pick the red coffee berries when they are perfectly ripe. You will also have a glance of the shade grown technique which only allows the precise amount of sun on each coffee tree and protects the environment. And you will end with a cupping, in which you will sample different flavors and roasts.

What's it like living in a foreign country anyways?

Day 251 Saturday (Sabado) - Panama City

We get asked the title question many times and you would think it is an easy thing to answer. Living in a foreign country has its challenges, but it really matters how you handle challenges in your normal everyday life. For us living in Panama has not been very different than living in many different states in the US, when you move anywhere you need to get situated, find a doctor, dentist, a vet, turn on phone and Internet, shop, etc.. The major difference in a foreign country of course is the language barrier, but if you really want something to work than the language barrier is not a barrier at all, just treat it as another challenge.  My Spanish is weak at best, yet surprisingly we get along just fine. We have met many locals who speak both English and Spanish and they are more than happy to help if we need it, plus I use my translation software as often as possible.

My advice is, (as Nike says) just do it. If you are looking for a lifelong challenge and wonderful experience than living in a foreign land is very inspiring and uplifting. We would not trade it for the world and we have only just begun this journey.  I remember when we lived in Japan back in the 80's and how awe inspired I was as a young adult, didn't matter then and it doesn't matter now, living is living, people are people. If you need to get something done take a breath and take your time, it will work in the end, if not move onto something else.

I know my Spanish will improve and that will make it easier, but heck I didn't move here to make it easy, I moved because I like challenges and Panama is a beautiful warm country to take up those challenges.

So Come To Panama and Turn Your Frown Upside Down.

I love free stuff

Day 250 Friday (Viernes) - Panama City

Walking around the city we came across the Fuze Tea folks giving out drink samples. Good tasting stuff.