Episode Summary
In this episode of The Expat Files, Johnny Mueller dives into several key topics that highlight the complexities of expat life in Latin America. He begins by discussing the phenomenon of first-world do-gooders, critiquing their superficial charity efforts and the cultural imperialism that often accompanies them. Johnny recounts an incident where he was asked to pay a cover charge for a charity event that ultimately provided toys to Mayan children, suggesting that more practical aid, like shoes, would be more beneficial. He also shares a story about a charity event where McDonald's partnered with a local organization to provide Happy Meals to poor indigenous children, which he views as a form of cultural imperialism. Johnny further comments on the irony of such events being promoted as charitable, while the local population is unaware of the true intentions behind these initiatives. He also mentions a free vaccination campaign for adults and children, which he views as a form of eugenics and a way to exploit the poor for the benefit of first-world do-gooders.
Next, Johnny critiques the so-called 'do-gooders' who come to Latin America with the intent of helping local communities. He describes how these groups, such as the 'Mayan Families Organization,' often provide superficial aid like free talks, chicken bus fare, and lunch, while failing to address deeper systemic issues. Johnny recounts an encounter with a representative of one such group, where he sarcastically points out the group's lack of real impact, suggesting that their focus should be on education rather than feeding or sheltering. He also highlights the irony that these groups often prioritize photo opportunities over real change, such as providing clean water and sanitation. Johnny further contrasts these groups with the Mormons, who he claims are more focused on recruitment than actual community development. He ends by mentioning a former Mormon recruit who now works in El Salvador and has practical skills, such as removing stains from white shirts, which he finds ironic given the Mormons' supposed mission.
Johnny then shifts to discussing the reduced crime during Christmas in Latin America, noting that middle-class neighborhoods experience a truce, with neighbors visiting each other. He also mentions that even in areas with gangs and crime, there's a general pause in criminal activity on Christmas Eve and Christmas Day. However, he warns that this peace is not guaranteed for those who are careless with their property, such as leaving a car running or windows down. Johnny then discusses the availability of fireworks, particularly 'Osama bin Laden' themed aerial bombs, which are popular in Latin America and are made locally rather than imported from Asia. He also touches on the issue of illegal pig trafficking from Mexico into Guatemala and Belize, highlighting the economic impact and the problem of enforcement. Finally, he mentions the recent arrest of Panama's former president, Ricardo Martinelli, by the country's Supreme Court on charges of illegal wiretapping and spying.
In the final segment, Johnny discusses the ongoing legal issues of a political figure who has been accused of numerous illegal activities, including wiretapping, espionage, and embezzling public funds. He highlights the irony that despite being charged with these crimes, the individual is currently living comfortably in a foreign country, possibly Panama, and is not facing immediate legal consequences. The segment also touches on the case of former El Salvador president Francisco Flores, who was recently caught attempting to flee the country and is now under house arrest for money laundering and corruption. Johnny criticizes the lack of accountability for corrupt politicians, drawing parallels to other countries like Guatemala and the United States, where similar issues persist. He also addresses a listener's question about the high reported sales numbers in real estate in Latin America, explaining that these figures are often misleading and that many units are bought by speculators rather than actual residents.
Finally, Johnny discusses the overbuilding of real estate in Latin America, citing a former real estate mogul who claims that many big-city real estate bubbles are overbuilt by 400%. He notes that even if all qualified buyers or renters could afford to purchase or rent new upscale units, the occupancy rate would still not exceed 25%. Johnny suggests that the remaining 75% of units will likely remain permanently vacant. He also highlights the irrational exuberance around limited supply, pointing out that there is actually an unlimited supply of new middle and upscale properties in Latin America that will never be occupied. He further explains that investors who own multiple units are not lowering prices and still believe that the upper middle class or waves of gringos will eventually buy or rent these units. Johnny provides an example of a young Latin couple who bought a new house when they got married, with their father owning multiple lots in a subdivision, expecting future buyers to purchase these properties. He also discusses how some Latin businesses, like a t-shirt and uniform factory, use cash flows from exports and local sales to fund real estate investments, fueling the real estate bubble.
Topics
First-world do-gooders in Latin America, Charity and cultural imperialism, Critique of superficial charity efforts, McDonald's and charity initiatives in Latin America, Free vaccination campaigns and their implications, Criticism of do-gooder groups in Latin America, Mormon recruitment and community development, Cultural practices in Latin America during the Christmas season, Christmas Crime Truce, Fireworks and Cultural References, Illegal Pig Trafficking, Political Corruption and Arrests
Chapters
00:00:00 Opening 00:00:41 The Season of Do-Gooders 00:01:34 The Do-Gooder Radar 00:04:51 The Marketing of Charity 00:06:42 The Mayan Families Organization and Their Mission 00:07:05 Johnny's Critique of the Group's Approach 00:08:54 Mormons and Their Mission in Latin America 00:12:09 The Christmas Crime Truce in Latin America 00:13:02 Why Can't the Christmas Truce Happen All Year Round? 00:13:08 Fireworks and Cultural References in Latin America 00:15:02 The Origin of the 'Osama bin Laden' Fireworks 00:16:09 Illegal Pig Trafficking and Its Impact 00:17:58 Arrest of Panama's Former President 00:18:08 Accusations Against the Political Figure 00:18:59 House Arrest of Former El Salvador President 00:21:58 Explanation of Real Estate Sales Numbers in Latin America 00:24:12 The Overbuilding of Real Estate in Latin America 00:24:53 The Consequences of a Real Estate Bubble Burst 00:25:58 The Case of the Young Latin Couple and Their Father's Real Estate Investments 00:27:25 How Latin Corporations Fuel the Real Estate Bubble
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 as I wander 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 Yes, it's me again. Johnny Mueller with the expat files living in Latin America like expat Eddie says I'm a bar of soap in the vast entertainment outhouse a Very small bar of soap now for a topic that's apropos for the season first world do-gooders
[00:48] Yes down here in Latin America. They're everywhere Especially when you're off the gringo tourist trail and you happen to be flying from anywhere up in the states You just might be stuck with a plain load of do-gooders the more you travel the more you run into them now being that it is the holiday season I happen to be walking in a busy area of a small town that's off the gringo tourist trail and Suddenly I heard some loud Latin dancing music coming from a big open salon on the second floor of a nice little Colonial shopping center it was loud boisterous full of young people and everyone was having fun and as I walked in a guy came up to me a guy in A three-piece suit no less and said I was required to pay a cover charge and I said, how much is it? He said anything you want to give this is for a charity
[01:34] Instantly, my do-gooder radar went up and I'm thinking oh, what kind of short-term feel-good crap Are they promoting and I said, well, what's your charity do? Then suddenly a beautiful young natural blonde gringo walked over to me She was the lone blonde gringo was taken out like a sore thumb amongst a room full of short brown Ladinos and indigenous people nothing unusual about that in Latin do-gooder circles And she said we're collecting money for an organization that provides toys for underprivileged Mayan kids and she said it with a great big smile and an eye-glazing Mormon stare and I said really you're collecting money to buy toys to give to needy indigenous Mayan children Well, then I said, you know what? I think they really need they need some shoes
[02:24] Because you know, there are millions of poor barefoot kids running around Latin America Wouldn't that be a bit more practical then that glazed? I look really narrowed then she thought a few seconds and said I'm sure there are some other Charities around here doing that kind of work. Hmm. Typical, huh? Needless to say I donated not one centabo to that organization So believe me when you're off the gringo tours trail You'll always be running into do-gooder types and really they're all so brainwashed and misguided Trying to save the poor of the third world one happy meal and dark-skinned Barbie doll at a time Sometime ago. I actually ran into a do-gooder who told me his agency partnered up with McDonald's for a certain charity event, which is why one day a year
[03:13] They have a McDonald's Day throughout Latin America and all the private grades tools including the exclusive Helicopter grade schools with the bodyguards and such on that day They bust their classes in very nice buses by the way down to the nearest McDonald's and they buy happy meals and such Some of the money McDonald's says is then donated to provide get this box lunch Happy meals to poor indigenous people who of course never get a chance to sample such things simply because Finances would never permit so with the generous help of McDonald's and do-gooders They get a taste of the all-american junk food diet now a teacher friend of mine who works at one of those helicopter schools Gave me one of the forms that kids are sent home with so their parents can sign so that they can have
[04:01] Permission and the dough to take a field trip with the class to McDonald's on that special day And by the way on that day in many McDonald's parking lots They've even got TV cameras and radio crews Reporting on all the festive activities that are provided in the parking lot clowns acrobats jugglers Dancing singing you name it all kinds of entertainment Designed to keep parents and kids spending in fact all day long the local TV stations keep Flashing back to the McDonald's parking lots announcing the number of Big Macs and happy meals that have been sold so far You got to hand it to them. It's great marketing to the poor indigenous kids Yep, it's in the plan when they start earning money themselves surely They'll know love spend and get addicted to McDonald's so under the guise of do-gooder first-world charities
[04:51] You've got instant gratification for poor people who've never really had fast food before is that a good and charitable thing to do To these people you know something stinks about this whole setup, and it ain't McDonald's I take it back It is McDonald's now the funny thing is what's happening here seems so obvious to us But down here the people just don't get it even the first world helicopter schools with gringo teachers that should know better they don't pipe up either and Why not because like my gringo teacher friend told me it's a free day for teachers and everyone hallelujah But worse yet just last week well off the gringo tourist trail I was walking through a small town of about 5,000 or so people and I was hit with another sad first-world reality check
[05:38] I couldn't help but notice all kinds of posters announcing a freebie free Vaccinations for everyone. Well, I take that back for adults. It was around 12 bucks and for kids Absolutely free. Yep old Bill Gates and his eugenics brigade are at it again and one thing you must remember when in the third world dealing with very for people making under 300 bucks a month when word gets Out that some first world do-gooder group is giving something for free Suddenly people start coming out of the woodwork and lines start forming around the block and get this I understand that some of the do-gooder groups down here are actually giving some of the poor folks out in the boonies Chicken bus fare and a box lunch to get their free talks and overload Oh and one last thing about first world do-gooders down here one do-gooder forced his business card on me
[06:28] And when I took it and slowly read it back to him sort of sarcastically I sometimes just can't be my usual lovable self, you know I thought that would be the safe thing to do at the moment instead of telling him what I really thought Anyway, the name of this do-gooder group is called the Mayan families organization And there's a happy full-color glossy face of a little indigenous kid and it says on the bottom to educate feed Shelter and heal Mayan families after I read it out loud. I said to the guy so that's what you do Hey educate feed shelter and heal right and he said of course. Yep That's our mission Then I asked him just how long he'd been down in Latin America saving locals and he said he'd been down around three months
[07:13] Then I said well, would you like a little tip from a gringo that's been down here over? 25 years practically continuously and he'd not it if only to be polite I said, you know your business card says educate feed shelter and heal the families you ought to forget about the feeding sheltering and healing and Concentrate on the educating Starting with just three simple things and if you can accomplish that the rest will follow number one teach Latin Indigenous males that the world is not their urinal number two teach them that the world is not their trash can and Especially that their lakes and rivers are not their dumpsters or toilets And of course all those things are related then I said have you checked out any of the rivers near small towns
[08:01] You'll see the ladies wash their clothes in the same water They drink from and their little laminate tin houses back up to the river And there are tubes trenches and troughs with sewage and gray water going directly in the water So they're washing their clothes upstream Drinking and crapping in the same water You fix that problem clean that up and the society and the health of that society will improve Dramatically and fast, but you know what as usual by the time I got to the end of that speech I lost him completely He was waving at another bunch of smiling freckled first-world do-gooders bouncing happily up the road all like him with that Mormon glazed look and the Ronald McDonald smile. Anyway, I learned a long time ago. You can't argue with do-gooders
[08:47] They'd rather give out toys than toilets because a smiling happy kid with a toy is a much better photo up for a fundraiser Than a guy sitting on a crapper now in the do-gooder vein, you know that the Mormons are everywhere In fact, they've got the nicest churches in every small town in Latin America All you have to do is say to anyone who's got the nicest church and they'll say church of Latter-day Saints the Mormons and oddly enough It was the famous Captain Mango who pointed out to me that Mormon churches have no windows where there are supposed to be windows It's all bricked up or just solid plaster or concrete panels. So then you gotta wonder what's going on in there Well, I guess I'll leave that for others to speculate on but I will say this I had a little pow wow with a couple of Mormons few months ago sitting in the waiting room slash lounge in a bank
[09:36] Believe it or not. And you know, I asked them the simplest of questions. I said, what are you guys actually doing down here? What projects are you working on because you know, every do-gooder group has a mission There are either building houses putting in central plumbing or irrigation systems or outhouses for Jesus However, I just recently discovered that the Mormons have no such stated mission Well, they have a mission and that's to recruit Recruit more Mormons as for building silos and chicken coops for Jesus. They're doing none of that They're just on a mission to recruit for what to build better looking churches than the competition Well, they've accomplished that alright. Well, I don't get it But as those two Mormons in the bank proclaimed their mission to recruit for the Mormon faith is a big success
[10:25] In fact, they said just have a look next time you see a pair of Mormons walking down the street You know, they always come in pairs. They said notice There's always a taller first world type along with a short dark Latin type That's the recruit and when you see that short guy with a tall Nordic looking partner That means the short guy is actually on probation and basically in Mormon boot camp Now if you've been a long time listener to this show, you know that my old buddy expatty whose base is in El Salvador He's got a lot of sushi restaurants. In fact, he's been selling them off lately He says now that he's turned 50. He needs some navel-gazing and some umbrella drink time Anyway, Eddie mentioned not so long ago. He's got a tremendous Latin worker. That was a former Mormon recruit
[11:11] Yup, he washed out of Mormon boot camp. Anyway, Eddie says this guy had learned some very very cool Practical knowledge along the way Eddie says there's no one he's ever met that can get a gravy stain out of a white shirt or Press a uniform like this guy can hey it figures right? Oh and while we're at it one last thing about the Christmas and the holiday season if this time of year Especially during Christmas week if you're ever invited into a middle-class Latin home That is a Catholic middle-class Latin home Don't be surprised if you see the entire first floor covered with pine branches and pine needles So they've got that oh so nice pine forest smell all throughout the home That's a tradition down here in Latin America Latins go to the Central Market a couple days before Christmas drop about five bucks and get a gigantic sack of pine branches and needles
[12:02] Then mom and the kids spread that stuff all over the first floor in every room and on Christmas Eve That's the one night of the year when there really is goodwill and peace towards man because fights and petty crime are Basically unheard of in fact in middle-class neighborhoods on Christmas Eve almost everyone leaves their front door open So neighbors and people you know can just drop on in for some Christmas cheer So then you might ask well What about those neighborhoods that have gangs and extortion rackets? You know bad guys roaming the streets with gold teeth and tattoos on their necks oddly enough on Christmas Eve and Christmas Day there seems to be a General truce and no one seems to get robbed or assaulted now That's not to say if you are stupid enough to drive an upscale car and load it with Christmas packages
[12:49] And you've got out and left your car running or your windows down then all bets are off though as General neighborhood crime goes you can count on almost zero crime on Christmas Eve and Christmas Day So then why can't that happen all year round? Well gang members has got a job to do too No matter how revolting as do flies mosquitoes kookarotches and pus-filled politicians for that matter Oh, and by the way, don't forget that on Christmas Eve when the clock strikes 12 midnight There'll be so many firecrackers aerial bombs and Roman candles going off You'll practically go deaf and the same thing will happen on New Year's Eve too, of course now because I'm recording this show about two days before Christmas All I've got to do if I want any fireworks at all from the smallest to the biggest stuff
[13:37] All I gotta do is walk down the street for a block or two till I get to the nearest tien de you know little mom-and-pop 7-eleven store and they'll be stacks and stacks of fireworks behind the counter and Strangely enough and this will really blow your mind there's a very special kind of aerial bomb a big old thing that you can buy this year and light off and from what I Understand there are a series of Roman candles and skyrockets to under the brand name of Osama bin Laden and the label shows an air perfect picture Smiling resemblance to his personage and ugly mug now from what I understand. They're selling like hotcakes Osama bombs That's what they're called And I've been going around to the little tien does looking for a couple of myself just to take a picture
[14:26] to show on my youtube channel and at my January 2016 Latin insider seminar Which is coming up in about two weeks now And by the way, if you want to get in at the very last minute, just go to www the new expat calm Click on Johnny's 2016 Latin insider seminar link and sign up right away You can still get in and there's cheap air flights, too I heard some people are getting them around $500 round trip from any of the big hubs up in the States But what was I? Oh, yeah, the Osama bin Laden aerial bomb now You really got to wonder how that all came about Don't think for one minute that latin's import their fireworks and skyrockets and aerial bombs from Macau or China or Anywhere in the Far East they're all homegrown made in Latin America
[15:14] In fact, every fairly good-sized Latin American city has a little section a little neighborhood That's pretty much exclusively set up with little mom-and-pop shops that make firecrackers Aerial bombs and all the necessary explosives needed for a good bang-up latin holiday So what I'm saying is that bin laden logo and the bin laden bomb is completely a Latin American marketing idea And it's working like gangbusters. Everyone wants one now I'm sure they must have copied it from another bomb of that sort in Taiwan or Macau because they copy everything down here Unfortunately in my experience, I've found Latins don't have an original bone in their bodies, but I could be wrong There's always the exception to the rule now regarding those bin laden bombs Imagine if someone were to sneak one of those in his luggage up to the states not a good idea at all
[16:03] Probably end up in Guantanamo, but you'll get your 15 minutes of fame and now for some news You'll never hear up in the first world. How about this one? Did you know that in the last year? 22,500 live pigs that's live porkies have been illegally transported across the border from Mexico into Guatemala and Belize. Yes, according to this news article Contraband pigs heading south from Mexico are a huge problem Causing lost tax revenue to Mexico to the tune of 15 million bucks a year Meanwhile those illegal alien pigs have been finding their way onto the plates of diners as far south as Panama and Colombia Quoting from this article It says the porcine contraband issue is becoming a bigger problem year over year
[16:53] Now the spokesperson for the Association of Mexican pig farming industry says the fines and penalties for trafficking in illegal pigs are unfortunately all too lenient and Enforcement efforts are almost non-existent One reporter stationed himself on the Mexican Guatemalan border between the cities of Cotapeque and Quetzaltenango To get the story firsthand the reporter filmed no less than 2,500 examples of pigs crossing the border illegally Of course the innocent pigs were being directed to break the law by their handlers So there you have it folks a startling case of reverse illegal immigration Think about that next time you reach for a bag of chicharrones or a ham sandwich now speaking of Christmas presents
[17:39] Were we talking about Christmas presents? Well, we are now how is this for a Christmas present for the people of Panama? You've often heard me say that every single Latin politician is a dirty filthy pinheaded Sociopathic pus bag and I mean that from the heart in the spirit of the season anyway Just today the Supreme Court of Panama ordered the capture of the previous president of Panama Ricardo Martinelli who was president from 2009 to 2014 They've nabbed him on a large number of illegal offenses including more than a hundred fifty people he wiretapped and spied on illegally and he's been accused of that all too common presidential crime of taking donated millions from a do-gooder first-world nation and depositing the funds into his own personal and assorted family accounts
[18:30] Outside of the country now guess which country they're asking to extradite him from since he's not in Panama Why would he be if he didn't stay there? He'd have gone to jail immediately He's sitting pretty on a beach sucking down daiquiris and guess where? South Beach my jammy and then comes another Christmas present to the people of El Salvador Central America in today's news again ex-president of El Salvador Francisco Flores is being held under house arrest in the capital San Salvador Nope, his plans to skip the country for again. My jammy were thwarted instead. They got him at the airport Now he's under house arrest for again a number of crimes most of them
[19:16] money laundering and stealing from the public trough to the tune in just one case of diverting a 15 million dollar donation for his Personal use a donation that came from the moronic pinheaded do-gooder nation of Taiwan Those were a few of my adjectives added there Oh, and by the way you longtime listeners to this show might remember it was the same idiot moronic pinheaded do-gooder Republic of Taiwan that some years ago sent a nice big fat donation check to the president of Guatemala, too Who immediately wired the funds to his personal account and friends and if you remember for that and other crimes? He got extradited to the US for money laundering and did six years in a federal Penitentiary and that maggotist scumbags name
[20:03] Alfonso Portillo and occasionally if you got a good eye you can catch a glimpse of him and his parade of SUVs and bodyguards as he pulls into Costco Waltzes down the aisle in the wealthy zone 10 area of Guatemala City and there as in everywhere he goes in Guatemala He's treated like royalty. I've seen it myself right there in the Costco People will bow shake his hand and kiss his thieving ass up and down Same thing with the guy who was vice president under him He went to jail for a couple of years too and guess what people pull the same thing in Walmart and Costco They just stand there and kiss his ass or shit one of the local TV stations has given him his own weekly Political talk show can you believe that down here you can get convicted and go to jail?
[20:50] But you don't have to pay back what you stole how about that come to think of it It's not much different for politicians up in the states is it look at the bushes the Clintons thoroughly corrupt malignant postulant dynasties and Obama a human colostomy bag, too And again, I mean that in the nicest spirit of the season. Okay. Now. Here's an email I get a lot of them that say stuff like this dear Johnny I've noticed in my travels through Latin America and Looking up different real estate properties in the internet that many of the big projects you talk about that are Overbuilt supposedly are being advertised as 50 60 70 even 80 percent sold How can that be if there's a real estate bubble? From what I know and I've had a number of small rental properties over the years in
[21:37] Cincinnati you really can't lose money if you have over half your units sold or rented So Johnny just want to know about those seemingly high rental and sales numbers could they possibly be lying? Like you said it is Latin America. Thanks Johnny for all the great information and the laughs Kelly Cincinnati, okay, Kelly That's a very very good question and a very very easy one to answer The fact is they're not lying when you drive around big cities here in Latin America where the bubble is strong and massive They will have signs that say eighty percent sold get in on the last few units The thing is what they never tell you and they don't want to tell you is who bought that eighty percent They're bought by investors not present or future tenants
[22:24] The fact is even though bank CD rates are relatively high down here in Latin America Many businesses tend to work with huge hordes of cash and they hide all that stuff when they can from the government so they don't have to pay taxes obviously and now that the US has forced those Fatka and gatka laws down every bankers throat even in Latin America They're burdened now with the heavy know your customer laws to just like up in the states You deposit more than 10 grand and you got to fill out a lot of forms that go to the government That said the people in the businesses who are doing great volumes of cash including of course narcos and thieving politicians Can't walk into a bank with huge hordes without raising red flags So the obvious place to put your cash real estate
[23:09] In fact, I personally know more than a half dozen Latin businessmen who've pumped money into some very big projects They buy whole floors of new developments We're talking 10 15 even 20 residential units at a time So it's easy to say that a big residential tower For example is 80% filled when it's really not filled just sold It's generally the case that only a few big cash spenders own an entire complex of maybe 200 units Then they farm it out to a real estate agent who tries to sell the units But can't so they end up trying to rent them and they don't do very well with that either So when you see a big billboard on the highway that says that a new residential complex
[23:55] For example is 80% sold. It's not 80% filled It's almost never the case that the people who bought those units plan to occupy them often more than half of the units in a brand new project are bought up by speculators who will never live there so yet don't Know the whole truth as it turns out the only residential complexes that are heavily owner occupied are some of the very old Complexes that have been around a long time in fact in talking with a former gringo real estate mogul Who is pretty much wiped out up in the states back in 2008? He's down here in Latin America now He says most of the big-city latin real estate bubbles are overbuilt by 400% so he says even if everyone who could afford the payment on an upscale home
[24:43] That is if qualified renters or buyers suddenly bought or rented one of these new units The occupancy rate still would not go past 25% That's what he tells me so then who's gonna move into the other 75% that are vacant Well, they're just gonna be permanently vacant and that's today before the bubble burst So what's gonna happen when it bursts and that's coming real soon now as far as your email Kelly I have to say I get the same feeling where I used to get the same feeling when I see a sign that says Get in on the last units only three or four left. Sometimes I think it won't be long Those last few units will sell like hotcakes, but guess what they don't turns out is really irrational
[25:30] Exuberance that we get when we think there's a limited supply of something right? Believe me down here in Latin America. There's a seemingly unlimited supply of brand-new middle and upscale properties that are never ever gonna get occupied and The investors that own multiple units and blocks of these things are not lowering their prices. Not yet They still think the upper middle class Latins or perhaps waves of gringos are gonna arrive and buy or rent these units In fact, I know a nice young Latin couple whose parents have money and they bought them a brand new house when they got married They're living in a gated subdivision and the nice young boy who was born with a silver spoon in his mouth His father owns about 20 other lots in the subdivision
[26:17] Three are designated for the other three kids when they get married and he'll build them a house and the other 17 Well, that's the investment, you know, someone's gonna buy those some upscale Latin like him, right? Let me tell you it's not gonna happen So then what kind of business is daddy money bags in he owns a t-shirt and uniform Factory and that young newlywed kid tells me a good percentage of their business is cash And naturally they have to put it to you somehow now you might be thinking in a business like that. Why would people pay cash? Well, they don't not exactly anyway They send checks and make deposits to bank accounts owned by SA corporations outside of the Latin country where the operations and factories are
[27:06] So then all the cash from products exported Accumulate in a bank account in another banking jurisdiction and the cash they get from local sales Accumulates in one of the local banks. That's what they pay taxes on Meanwhile cash keeps accumulating in those foreign bank accounts and they have to do something about it Put it to work and for Latin corporations and businessmen the vehicle of choice real estate. That's what fuels the bubble You've been listening to the expat files living in Latin America coming to you twice a week from somewhere south of the border Email me the expat files at gmail.com And if you want me to help you sort out your own Latin American plans schedule a one-on-one Consult with me just send an email and let me know at the expat files at gmail.com. No spamos