Episode Summary
In this episode of The Expat Files, Johnny Mueller explores a range of topics affecting expats in Latin America and beyond. He begins by discussing the global financial system's vulnerabilities, particularly focusing on the potential for bail-ins as outlined in Basel III regulations. He references the 2013 Cyprus crisis as an example of how depositors can be targeted to stabilize banks, warning that this practice is now standard in all G20 countries, including Mexico, Argentina, and Brazil. He also mentions an upcoming seminar in Central America where he will discuss legal and financial strategies for expats.
Next, Johnny delves into the potential risks of becoming an expatriate in Latin America, particularly in light of U.S. federal laws and the ease with which the U.S. government can revoke passports for minor infractions. He references a book by Harvey Silverman, a defense attorney, which highlights how the U.S. government can target individuals with federal laws, even for non-felony offenses. Johnny then connects this to the risks of living in Latin America, where expats may face health issues due to the widespread use of genetically modified organisms (GMOs) and the associated use of pesticides like Roundup. He warns that these practices have led to increased health risks, including higher cancer and birth defect rates in countries like Argentina.
Moving on, Johnny discusses the environmental and social impacts of soybean expansion in South America, particularly in Paraguay, where deforestation and displacement of rural families have occurred due to the soy boom. He references a New York Times article to highlight the scale of the issue, noting that Paraguay is now the fourth-largest soy exporter. He also touches on the economic growth of the region, attributing it to the soy export industry. Transitioning to a different topic, he addresses the 43 missing students in Mexico, criticizing the political corruption and cartel influence in the country. He advises against expat life in Mexico, citing the risks and lack of improvement in the situation, while acknowledging that some areas like the Yucatan may be relatively safer.
Johnny then discusses the lack of transparency in government contracts in Latin America, particularly highlighting the role of a local lab with a government contract that is likely controlled by a corrupt politician. He explains that this lab is involved in kickbacks and that the process for obtaining a driver's license is highly flawed. Johnny describes the process of getting a driver's license in Latin America, which includes an eye test at a clinic near the license bureau. He notes that the test is not conducted by a qualified optometrist but by a person in a white coat who will pass you for a fee. Johnny shares personal experiences and anecdotes about how expats and locals navigate this system, including instances where people with poor vision or no Spanish language skills still pass the test. He also discusses the lack of vehicle inspection standards and the high cost of car licensing fees based on the car's age and model. Johnny concludes by highlighting the prevalence of junk cars on the road and the lack of government oversight, suggesting that the situation is a result of systemic corruption and inefficiency.
Finally, the podcast segment discusses the inefficiencies and corruption in Latin American governments, particularly regarding vehicle registration and public transportation. Johnny Mueller suggests a logical solution to reduce the number of old, unsafe vehicles on the road by implementing a graduated registration fee system. However, he notes that such a solution is unlikely to be adopted due to the bureaucratic and corrupt nature of Latin American governments. The segment also highlights the contrast between the regulated taxi industry and the unregulated, often unsafe public transportation systems like chicken buses. Johnny attributes this disparity to the fact that government officials and elites prefer newer, safer taxis, while the general population is forced to use outdated and dangerous public transport.
Topics
Global financial system, Bail-ins and Basel III, Expats in Latin America, Legal and financial strategies for expats, U.S. passport revocation for minor offenses, GMOs and their impact on health in South America, Roundup and its environmental and health effects, Exit strategy for expats, Legal and health risks of expatriation, Soybean expansion and its environmental/social impacts in South America, Political corruption and cartel influence in Mexico, Challenges of expat life in Mexico
Chapters
00:00:00 Opening 00:00:32 Introduction to the Topic of Financial System Vulnerabilities 00:02:24 Explanation of Basel III and the Bail-In Feature 00:04:57 Warning About Bail-Ins in Latin America 00:06:19 Mention of an Upcoming Seminar for Expats 00:06:48 U.S. Government Can Pin Felonies on Anyone 00:07:18 Expats and Legal Risks in Latin America 00:11:28 Health Risks of GMOs and Roundup in South America 00:12:35 Soybean Expansion in South America 00:14:36 The 43 Missing Students in Mexico 00:15:58 Expat Life in Mexico 00:18:13 Import Regulations in Latin America 00:18:37 Government Contract Lab and Corruption 00:19:40 Eye Test Process and Convenience 00:20:26 Eye Test and Payment 00:20:53 Personal Experience with Driver's License Test 00:21:52 Lack of Vehicle Inspection Standards 00:23:11 Car Licensing Fees and Vehicle Age 00:23:50 Prevalence of Junk Cars on the Road 00:24:30 An Idea from an Expat: Graduated Registration Fees for Vehicles 00:26:30 The Paradox of Taxi Regulation vs. Public Transportation 00:27:16 Why Government Officials Prefer Taxis Over Chicken Buses
Transcript
Automatically transcribed from the original recording; names and wording may contain errors.
[00:00] South of the border, down Mexico way That's where I fell in love when the stars above came up to play and now I wonder Hello there all you expat wannabes. I'm Johnny Mueller and you're listening to the expat files living in Latin America The show that tells you just what it's like to live work play and or retire down here in Latin America It's a mix of the good the bad the ugly and the great and it's all right here. So let's get started Okay, now I'd like to start out today's program with something that might not seem related to living in Latin America But it really does more than you think believe me now You might remember a year or so ago when Cyprus had that big blowout When the banks failed and they had what they call a bail-in not a bailout where the actual depositors in those banks were gouged
[00:52] Raped and swindled out of their own money to make the banks and the system so-called solvent again Well, do you think that those banks just suddenly hit the wall and the bankers scrambled got together had a meeting and came up with That solution in an afternoon a day or even a week. Well, you know what that solution did not come out of thin air That was all part of a preconceived plan Essential bankers white paper as a matter of fact that you can read on the internet though banking stuffs always very boring Now if you're not familiar with the central banking group, it's called B is Bank of international settlements and they're like the mothership for all central banks so note that when the next big economic blowout comes the next big blast the banks meaning your bank will be
[01:39] Confiscating at least part of your local bank account. They'll dip into your deposits Just like in Cyprus. They'll take a piece and you'll have no say over it now I'm sure you're thinking yeah, Johnny. You're an alarmist. That'll never happen here That's Cyprus a puking little island halfway between Turkey and Africa But when the next blowout comes in the first world This is what your politicians are gonna say mark my words because the script is already written Just bear with me a few seconds more and I will get to the Latin American connection Don't worry the bankers and politicians are gonna tell the public, you know people with money in the bank in all respective countries and Note that all G 20 countries have signed on to this now
[02:24] It's a plan that's been in existence for a while now called Basel three. That's Basel three It's a framework of financial banking regulations to which that bail-in capital feature is absolutely key So whether you knew it or not and you probably didn't for all the G 20 countries as of January 1st 2013 they've all agreed to the depositor bail-in feature and here's how they say it in the white paper They say capital alone is insufficient to make a bank safe during a crisis Access to more liquidity is essential. Therefore bail-in capital from depositors will have a key role to play in Maintaining confidence in the system now if you remember the last time in
[03:10] 2007 2008 when the financial system nearly collapsed the Fed through US taxpayers and bond issues Paid for it with a massive bailout the QE 1 2 3 infinitum and all that but during the next crisis Which is expected to be much worse It'll be the banks individual depositors and account holders that will shore up the system In fact the central bankers that put this together are so arrogant about it You can actually see a YouTube video spelling out the whole thing and it's their video Of course, it's out there But no one's watching it because banking stuff is so terribly boring like watching two frogs fornicate though Even that's probably a hundred percent more interesting. So in this YouTube video
[03:57] They're explaining Basel three and they flat-out say depositors money will be used to shore up banks in a crisis so you could be minding your own business in Sweden or France or Canada and You could wake up in the morning turn on the news and see that one of the G20 countries has had a financial blowout For example a derivative blowout a liquidity crisis or a central bank failure and you as an account holder Depositor in a bank in a G20 country will be on the hook for their loss Because all G20 countries signed on to Basel three and quote in a crisis will Socialize the losses. So what's that mean for all you guys and gals up there in gringo land? That means you want to keep very little money on deposit in your bank
[04:44] Which brings us to banks in Latin America now in the last month or so I've done a couple of shows talking about certain ways to use banks down here in Latin America And I also mentioned you don't want to keep a great deal of money in banks down here For the long term either. However, there are only three Latin American countries in the G20 Mexico Argentina and Brazil and the other 17 Latin countries don't belong So when the bail-ins start at least your money will be safe if you have it in one of those countries banks And of course, we'll be talking a lot more about the banking subject and SA corporations and how to remain anonymous Etc. Down here in Latin America. I'll be hitting on that and much more at my upcoming January 2015 Seminar in fact as you probably figured out
[05:31] there's a lot of things we talk about at the seminar that we can't mention on the radio and About my upcoming seminar which will be six days and nights of boots on the ground down here in Central America in and around Guatemala that said here's one thing that you have to remember What's perfectly legal down here in Latin America just might not be legal up in the States So once you're down here and get your boots on the ground for a while and you talk to some professionals and some long-term Expats, you'll know exactly what I mean So why do I mention that because I do get emails of that sort People do ask me if some of the edgy things we might talk about at the seminar are in fact legal and I say 100% legal down here in Latin America
[06:19] Anyway, that said I'll refer you to a recent book called three felonies a day again. It's called three felonies a day it's a book written by famed defense attorney Harvey Silverman a Guy who writes for the Wall Street Journal the National Law Journal the New York Times, etc Etc and in his book He says that the average professional person in this country likely commits at least three felonies a day and remains totally Clueless about it and in that book He tells us how the feds can pin a crime a felony on anyone in the US that they feel like picking on since there's over 72,000 federal laws on the books that can be broken and here's how it relates to becoming an expat down here in Latin America if up in the States you have a felony or are
[07:05] even accused of a felony or suspected of committing a felony the US State Department can tag pull or revoke your US passport and you Won't even know it till you try to cross a border So for example, if you're a bit subversive and you protest or you write letters to your congressman or belong to a vocal religious group or you're a prepper or a hoarder or perhaps you read or contribute to Anti-government blogs or whatever if big brother and uncle Sam want to stop you from leaving the country for any reason They'll just pick one of those felonies You never knew you committed and block your passport and or hold up your passport renewal process So basically at the whim of any one of those alphabet agencies in the US government
[07:52] You could be a prisoner in your own country Fact is US citizens have had their passports blocked for much less than a felony like being behind in Alimony and child support not to mention hundreds of people have had their passports blocked because they defaulted on their school loans The fact is more than a half a million adult Americans are in default on their school loans right now That means every one of them could have their passports pulled. So where am I going with this? Well, it all boils down to the fact that you need an exit strategy a plan B And you know all the preppers up in the states they say there's millions of them now Well deep down the intelligent ones Anyway have to know you can't sit in the basement with your pallets of water and ammo and beans
[08:40] Talk about stress. What kind of life and what kind of survival strategy is that what you need is a plan B That's comfortable safe viable and cheap And the fact is you wouldn't be listening to this program right now If you weren't considering Latin America as your plan B So again, come on down and get your boots on the ground with me at my expat wisdom seminar in January 2015 And since the seminar won't get underway for two months, you've got time to sign up But as of today, we're over a half filled already. So don't put it off too long now I know it takes a while to get your ducks lined up vacations and time off and all that and Quite a few people have sent me emails saying they're trying to line all that stuff up right now that said I've got some spots Open but don't procrastinate
[09:26] Just go to expat wisdom comm click on the seminar link for full details And now for all you folks who are thinking about South America as your final expat destination If that's your plan B, here's some food for thought Here are a few things you should add to the mix before you decide on a country now one thing I know is that a lot of very health-conscious smart people listen to this show and That was one of the reasons of course that I did that segment a couple weeks ago Where I mentioned those sneaky tactics that Monsanto and GMO lobbyists have used to slip pro-GMO legislation into international trade agreements now what few people know and what rarely gets publicized up in the first world is that Monsanto and their cronies have managed to slip
[10:14] pro-GMO legislation in the following South American countries Argentina, Bolivia Paraguay Brazil Ecuador and Uruguay So basically GMO friendly countries make up more than three quarters of South America's landmass and nobody's protesting Now if you remember on a previous show I mentioned that in Guatemala The indigenous people got together in black that GMO so-called Monsanto law But only after small farm activists found out it was slipped into an international trade agreement And they forced the Guatemalan president to overturn it by taking to the streets blocking traffic and picketing etc And now some of the other Central American countries are following that lead however in South America
[11:03] It's a very different story GMOs are now such huge business that anti GMO activism just doesn't seem to have much of a chance in fact In those South American countries I just mentioned more than a hundred twenty-five million acres are planted with GMO crops Mostly soy by the way, that's an area bigger than the entire state of California then you might say so what just don't eat soy 90% of it is GMO anyway, so if you're into true health, you won't be eating that kind of crap But the problem that sentiment overlooks is the fact that the GMO basis of soy crops and other crops in South America Is all about making them round up ready, of course, you know what that is So then the counterpart to that is that you've got hundreds of thousands of tons of Roundup being sprayed every year
[11:54] Meaning South Americans are getting mega dosed with Roundup just saturating the soil in the fields and getting blown everywhere So if you live anywhere near a soybean crop, you're gonna get doused with it yourself You just can't run away from it In fact Roundup's been detected in the air and in the soil and in the dust in big South American cities Dozens of kilometers away from soybean fields themselves. Now that should give pause to you expat wannabes and gunabes up there thinking of moving to South America since medical specialists are now saying that Argentina for example has a 300% greater incidence of certain cancers and birth defects as compared to Pre-1996 levels, which is the year Roundup Ready crops first started appearing in South America
[12:42] But don't take my word for it. Let me read you this from the New York Times by the way, speaking of the New York Times all large Latin American newspapers have a Sunday edition a thick one and Many many of them contain a six or eight page Spanish language New York Times or Wall Street Journal supplement every Sunday In fact, those supplements even have the same font and type as the New York Times and the Wall Street Journal They look exactly the same except they're in Spanish. So I'll quote this from that paper right now. It starts by saying Paraguay is now the world's fourth largest exporter of soy and demand is surging driven primarily by China and Europe for cattle feed and biofuels because of that Paraguay's agricultural landscape has altered dramatically on
[13:32] the back of the soybean boom in fact more than 1.2 million hectares of forests have been cut down to grow soy Rather than food for human consumption and other crops Brazilian settlers there called Braziguayos have set up large-scale soy farms provoking a prolonged Conflict over what locals call earth or soil robbery each year in Paraguay 9,000 rural families are evicted by soy production and Each year more than a half a million hectares of land are turned into soy fields there Which works out to about a million and a half acres So anyway, when you hear that Paraguay's got one of the ten fastest growing economies in the world, that's true
[14:17] But that's only because of the two billion dollar a year export soy business So bottom line in those South American countries I mentioned you can avoid the soy, but you'll never avoid the roundup now changing gears for a bit This might be a good time to talk about some emails I've been getting lately concerning the not so mysterious case of the 43 missing students at a school in Mexico And I say not so mysterious because you see most of these students were considered student Activist troublemaker types by the authorities meaning they were known to organize Protests and such as college kids will tend to do now Many of you probably already know that in a space of three weeks 43 students have simply disappeared
[15:04] Kidnapped and presumed dead now, of course, this is big news and a huge deal internationally Something like this has really never happened before not in the West anyway Sure kids disappear and are kidnapped from schools 43 of them at once Now here's something that's typical of scumbag Latin politicians when the going gets tough Did you know that the mayor he and his wife just took off and now they're fugitives from justice now Of course, this has everything to do with cartels and US drug policy and the fact that in Mexico nearly every single politician Government employee and cop is corrupt on the take So then all you guys and girls out there who still send me emails asking me what about Mexico? What about Mexico?
[15:50] Well, all I can say is open your eyes if you want to jump into the snake pit Go right ahead be my guest But I'm not advising anyone to become an expat in Mexico And if unfortunately you've got land there or an apartment or a business or you've retired there Well, then you're stuck though There might be a greater gringo fool to take your property or your business off your hands Just remember one thing you can stick it out and hope things will change but there is no light at the end of the tunnel It's only gonna get worse much worse for you guys and girls who've written me saying you've found your little piece of paradise in some Cool retirement place on a golf course or in a gringo colony or the Yucatan Well, like I said on a past show the Yucatan's about the only part of Mexico
[16:36] Not heavily tainted by drugs and cartels etc Because it's not directly on the path and the flow of the drugs coming up through South and Central America But you know what bad boys and girls in Mexico are catching on fast that your little section in the Yucatan is kind of unblemished In other words, it's loaded with a lot of wealthy by their standards Anyway, first world gringos and tourists So if you really found your little bit of paradise enjoy it while you can Now I do understand that Jesse the body Ventura, you know former governor of Minnesota Lives half of the year in Mexico He lives in an isolated little house on a beach and he loves it there and he says he's never felt insecure or threatened
[17:21] Well, I'll ask you this simple question then would you like to be the one that threatens Jesse Ventura? Hell the guy's as big as a grizzly bear. I bet you could shoot him five times before he'd even notice I don't think so I'm not gonna sugarcoat it like so many of these investment magazines and blog sites do now That's not to say I wouldn't personally take a short trip to Cancun or Playa del Carmen or the next latest and greatest Hotspot if the deal and the price is right, why not? so in Mexico, there are some nice places to visit but I wouldn't want to live there and Frankly, I feel sorry for you guys and gals who do I can see why you put on a happy face and keep plugging along If I had an investment in Mexico, I would too But if I did in the back of my mind and behind that forced smile, I'd be looking for ways to dump it
[18:09] Okay, let's get on to something else. Now you remember in last week's show I talked about how the Latin American governments make you jump through some stupid hoops if you want to bring down a product that already Exists up in the States like for example food products and I think in last week's example I mentioned organic preparation H or was it spaghetti sauce? I can't remember. Anyway I mentioned that the government extortion scam in this case was that you have to have the ingredients Analyzed by a local lab that has the government contract Which means you can bet that singular lab that you must use is clandestinely owned by a putrid Colostomy bag of a politician and if not because they couldn't work it out There'll be some heavy kickbacks from a regular lab since in Latin America. There's virtually no
[19:00] Transparency in government meaning contracts are handed out negotiated behind closed doors Now let me give you another interesting example of this When any Latin person or you or I as expats or whatever go down to the Department of Transit To get a driver's license It's not at all like in the first world where you walk up to a counter and you look into a machine to test your vision Note that down here at the license bureau. They don't make you stare into a machine like that However down here before you even walk in and can start your paperwork process You have to have already had an eye test at a little eye clinic That's usually located across the street or around the corner from the driver's license bureau. How convenient, huh?
[19:48] So if you're outside of the government driver's license building You're bound to see a big sign over a little hole in the wall joint nearby that says official driver's license vision testing center So you walk in there and you do actually look into one of those machines Usually a big clunky antique model from the 60s you pay between five and ten bucks and you get a certified stamped letter Saying that you passed your eye exam Note that you're not dealing with an ophthalmologist or an oculus or a real bona fide optometrist Just a person standing around usually in a white coat who will pass you whether you give the right answers or not In fact, you could be blind and they'll pass you as long as you pay your five or ten bucks And how do I know that? Because you see in order for a first world gringo or European to get a driver's license in Latin America
[20:39] He has to go through the same thing and the fact is most gringos who go for that drivers test know about ten words of Spanish That's it. So they have no idea What that attendant is telling them to read in that machine? In fact that very same thing happened to me the first time I went for my driver's license. I test in Costa Rica I knew about zero Spanish and didn't know what the hell the lady was talking about and she just smiled and gave me my Certificate anyway now some of you out there might say well, that's the gringo advantage They just let you slide because well, you're a gringo But I'd have to say that's not the case because I've mentioned that driver's license I test thing to many lands down here and I've never met a single one who ever failed the eye exam In fact, I know a young Latin computer repair guy
[21:26] And he told me that when he went down to get his driver's license I test in El Salvador the power happened to be out for a couple hours that day and surprise surprise the machine didn't work But he said no matter he paid his money as long with six or seven other people Standing in line behind him and they all walked out with their certificates signed sealed and delivered No, little power outage is gonna stop the malignant wheels of government from turning down here And you know what never fails to amuse us gringos is that you have that vision test at all Which supposedly qualifies you as a visually acute driver yet once you get behind the wheel You can have no tail lights. No headlights broken windshield You could spew clouds of black pollution and have a case of open tequila bottles in the car
[22:14] Then if you ever get stopped by the cops at one of those roadblocks They won't check if you've got a seat belt or that your brakes work or your backup lights work they only check to see that you've paid your yearly plate renewal as a matter of fact if you don't have a valid license or a license at all You get something like a 50 or 60 dollar ticket then after they hand you the ticket They let you drive right off now you tell me what would happen up in Cleveland if you got stopped without a license Oh, and by the way on the subject of paying that yearly license fee in Latin America You pay the fee according to the year make and model of your car So if you're in the truck category or SUV category you pay more than for a compact car
[22:59] Now note that we always talk about the fact that there are very very few things here in Latin America That aren't quite a bit less expensive than up in the states car and truck licensing fees are one such Exception to the rule for example if you bought a brand-new Volkswagen Jetta, let's say you might pay on the order of 300 US dollars for the first year's licensing fee And then as the vehicle gets older the license fee gets prorated downward for example the second year You might pay two hundred dollars and the third year 175 the fifth year maybe a hundred until The licensing fee with an older car kind of levels off at around maybe 50 bucks a year now as a first world gringo Or gringo coming down for the first few times to Latin America one thing you will notice as soon as you land at the airport
[23:48] And hit the road for the first time You'll be shocked at how many junkers and pieces of crap there are driving on the road And you'll wonder how some of them managed to even run and you'd think that any government even the most corrupt government in the world Would want nice newer model cars on the road because for one the roads won't look like a moving junkyard Secondly newer cars put out much less pollution and finally newer cars are safer with much less to go wrong So then you think the situation might call for a little thought experiment How do you get the 80% of the people who own cars that would never pass inspection in the first world? How do you convince those owners to trade them junk them or buy up? Well, here's an idea and it came from an expat naturally
[24:33] You think anybody in Latin American government has two neurons firing in sync. I doubt it anyway one expat I know a retired civil engineer from the states said it would be a very simple thing to do It would have to be done gradually, of course, but it's totally possible and why no one's ever thought of it Well, maybe someone has but this is Latin America Anyway, he said all a government would have to do is to pass the law saying with any brand new car or truck the first year's Plate registration would be absolutely free then the second year maybe 50 bucks the third year a hundred and by the time you get to year Five you're paying maybe 300 keep increasing the fee for years six seven and eight, etc Then by year ten, let's say you just make it so damn expensive
[25:20] Maybe a thousand bucks to renew the plate that it becomes worth it for you financially to either give up Junket or get a newer model But alas a solution like that is way too logical for the Spyro keep filled brains of Latin American government bigwigs However in talking to one of my new buddies bill who came down to one of my expat wisdom seminars about a year and a half He now owns a small fleet of taxis himself Which by the way just goes to show that when expats come down here even guys like bill who knew absolutely Zero Spanish when he came down we've got that gringo advantage in doors open because we see things that locals don't and As for bill he found his niche in the taxi business Anyway from what he tells me there's a new law in the books that says a taxi can't be over 15 years old
[26:09] Once it's 15. It has to be retired And from what I understand from bill taxis actually have a real safety inspection It also sounds like if you don't pass that inspection you can easily bribe your way through I know you can bribe your way through with your personal car in Colombia Costa Rica and Panama Here's the conundrum if in most of Latin America There are laws that force taxi fleets to use newer cars Then how come the chicken buses and the public transportation in general aren't under no such pressure And at least half are nothing but rickety-dirty stinky Disgusting death traps and I mean that in the nicest way, of course now Maybe it's just one of those Latin American conundrums that really has no answer though Leave it to expat Eddie to have a pretty good hypothesis
[26:56] He says since only visitors and tourists and upscale Latins and politicians Etc have the money to consistently afford taxis because let's face it a taxi ride might cost five or ten bucks Whereas a disgusting smoked belching chicken bus will get you there for a tenth of the price or less So Eddie postulates since so many government slugs and parasites use cabs regularly Never chicken buses they pass laws so that their rides are relatively new and in good condition In other words, as were the sweaty masses screw them South of the border Down Mexico you've been listening to the expat files living in Latin America coming to you twice a week from somewhere south of the border
[27:42] Email me the expat files at gmail.com and don't forget to check out expat wisdom calm to sign up for your free Reports on Latin America. See you next time nos vemos