North Again...Being a Grandma changes everything!

I haven't blogged for a long time and felt I should post an update. I am back in the US with plans to return to Chile for periods of time. I have to say I didn't expect to miss some of the things here-I didn't even realize I missed so much. Strangely-although I never drank much root beer-I find it is a special treat now. Crazy. But I buy the store brand for 59 cents a liter and it makes me very happy.

I'm now a Grandma-and that changes everything....I can't begin to explain how precious this time is. There are many moments daily that are worth...everything.

Shopping. People in the US, you have EVERYTHING-and you have no idea. The shopping is beyond compare. Everything for every size of pocketbook is here. And many things are more expensive in Chile. There are so many choices-and if things don't get sold, they have sales. As you can imagine, many things are on sale right now. Yes, it can be expensive to live in the US but by applying a bit of ingenuity and frugality-and by taking advantage of what is inexpensive-a person can live for much less than I once believed. People at retirement have buying the house of their dreams. And I want to scream "DOWNSIZE-WHAT ARE YOU DOING??!!!" I understand families-that is tougher.

In Chile, I did learn a lot about frugality. Convenience food is either not available or ridiculously priced. Although I did pay nearly $8 for a jar of Safeway peanut butter, it wasn't often. I re-learned cooking and baking. I find myself to be sort of a cheapskate these days-but I also notice more good deals. In the US, fruit and vegetables may be on sale some time other than its season-in Chile, you must watch for seasons. And almost everything else was more expensive than I was used to paying in the states. Marketing in the US is so clever-which is why we are such good consumers. We want everything. Marketing is nearly non-existent in Chile in comparison. They are getting better(or is that actually worse?). Yet people there are fast becoming "good" consumers themselves. This is a little scary. Chileans buy a lot on credit with even less understanding of it than those in the US. And we know how that went.

I now notice many big and little differences between the two countries. Many likenesses as well. I still find that fascinating. Vehicles are generally tiny there and here-omigosh they are huge. Although after crazy Chilean driving-here they look positively well-behaved. I'm not sure anyone here in Denver, Colorado believes that but I keep telling people to "move to Chile, you'll appreciate things more!" I was ecstatic at my 20 minute DMV experience after spending countless hours in Chile with bureaucracy, getting a RUT#, ID card etc. Who could have imagined that would make my day?

In Chile or the US, it's the little things!

Chile Earthquake 2010 Part II One week Later

Not all of Chile is like the images you see in the media. The media is showing the worst areas and the worst images for good reasons (areas that still need help) and bad reasons (more exciting headlines).

The photo is from several days ago-things are normal except for a few things like the skewed letters-It used to read "Fashion's Park"-the not so great English is "normal".

As most people know, the tsunamis caused much of the devastation, entire small towns wiped away. there's a lot of political sniping about warnings and whether people were warned quickly enough etc., etc.....but I know-and I have never lived on the coast but have visited coastal areas in Chile and Oregon-when an earthquake happens, as soon as you can run, you do. You can't wait for warnings. I read a story in which the grandparents saved their grandson's life by running to high ground. There is often little time to waste.

And the number of dead...truthfully, they don't know. Of course many fled the affected areas and many could have been washed out to sea and it is hard to know how many dead and how many missing until people are found or bodies discovered. Some of the numbers are here at the government site-they have apparently identified 279 dead. They say less but you will get different numbers in different places. The government said on Thursday the death toll, previously reported as 802, was unclear due to confusion over who was missing. Officials said they had identified 279 dead people, but were not sure how many bodies were unidentified.

I hate it that politics as usual as entered into this catastrophe so quickly.The Chilean earthquake hit just days before the landmark transition from outgoing President Michelle Bachelet to conservative President-elect Sebastian Piñera, and that is reopening old political fault lines that would better remain closed, says Peter M. Siavelis, director of Latin American Studies at Wake Forest University....“Beneath Chile’s vaunted market economy is the perseverance of a historically powerful state,” Siavelis says. “Chile’s effective regulatory power, especially in the area of construction, prepared and built the capacity to both withstand and respond to such a catastrophic disaster in a way that a minimalist state could never have.” ...Of course the opposition and incoming government believe the opposite, that lives would have been saved had they been in power. Certainly, it is in the incoming government's coalition best interests to discredit President Bachelet because they do not want to run against her again in four years-she has been the most popular president in the history of Chile with over 80% approval ratings. The mayor of Concepcion has been the most vocal critic but it should be noted she is of the far-right UDI party(the party of Pinochet).

And the WSJ credits Friedman and laizze faire economics-what has happened to the Wall Street Journal???? Oh yeah, that's a Murdoch newspaper now.... the Huffingtonpost does a piece refuting the myth of Friedman's self named "miracle" a little. Friedman-style economic policies actually had Chile on a steep, downward path into Haitian-style privation. This is all ably documented by James Petras and Steve Vieux in "The Chilean 'Economic Miracle': An Empirical Critique". Under the guidance of the Chicago Boys, Pinochet concentrated wealth in the hands of the upper class, while wages and social services budgets declined. The authors similarly document a massive unemployment crisis in Chile during the Friedman period, which rose as high as 30%. Chileans generally credit Pinochet for putting more people in homes, but as a 1985 Mother Jones article points out, this was largely due to effective PR -- the housing rate under Pinochet "was actually slower than it was under" the two previous governments.

And wow, the banks. Greg Palast documents the carnage wrought by gangster speculators...

And Chile had the largest earthquake ever in 1960 which "took more than 2,000 lives and caused property damage estimated at $550 million (1960 dollars)." This happened in a much less populated Chile. Truly, I was unable to get what might be a real count-estimates of the dead in 1960 went as high as 5000. And I wonder if they counted the indigenous population.

But the above link has some nice historical photos, information and stories about the 1960 earthquake-it was caused by the same geological movement as the 2010 earthquake, so much of the information pertains as well.

Life is surprisingly normal here, although the isolated areas are still reeling from the quake. There are no longer even long gas lines or long lines at the grocery stores. The images you see are from the worst areas. It reminds me of effects from a from a really bad hailstorm we had in Denver back in the 80s.

A few random thoughts. people here get paid once a month on the first so because the quake hit just at the end of the month, people tend to be very low on food and supplies-hence the rush to the grocery stores afterwards. Always there are long lines on the first, worsened after the quake. But they also tend to stand very patiently in normally long lines to pay bills on the first too.

And one more link. "Chile has seen many earthquakes both before the 1960 record-setting temblor and after. Two very large contenders have happened on March 3, 1985, and another on July 30, 1995. These earthquakes both had a magnitude of about 8. Chilean earthquakes are not rare, nor are they small. Large earthquakes in Chile seem, through history, to occur about every 25 to 100 years. They'll continue as long as the Pacific plate continues subducting."

Things are normal here... except for those of us are a little more nervous with every aftershock(I hate the aftershocks and small earthquakes that I used to ignore). I'm glad I'm not on the coast....

Chile Earthquake 2010

As you know by now...

SANTIAGO, Chile (AP)-- A massive 8.8-magnitude earthquake capable of tremendous damage struck central Chile early Saturday, shaking the capital for a minute and a half and setting off a tsunami. Buildings collapsed and phone lines and electricity were down, making the extent of the damage difficult to determine.

The quake hit 200 miles (325 kilometers) southwest of the capital, Santiago, at a depth of 22 miles (35 kilometers) at 3:34 a.m. (0634 GMT; 1:34 a.m. EST), the U.S. Geological Survey reported.

The epicenter was just 70 miles (115 kilometers) from Concepcion, Chile's second-largest city, where more than 200,000 people live along the Bio Bio river, and 60 miles from the ski town of Chillan, a gateway to Andean ski resorts that was destroyed in a 1939 earthquake.

We are about 40 miles SE of Santiago in the country and our area (according to El Mercurio) experienced an 8.0 magnitude.

We have had no power or phones or internet really until now. Here is my best recollection of my experience. The well pump went out the day before because of worn ball bearings so we still have no water except bottled. Can't believe that timing...

Friday night we went to sleep as usual around 12:30 but (as is not usual) I awoke in the middle of the night to the bed moving. Having experience the usual small tremors here in Chile from time to time (this is usual every few months), i knew this was different as the tremors grew stronger instead of quickly disappearing as is usual...In the past a small amount of shaking and some rattling that is over in seconds. But this one grew ever louder and stronger and it was as if the earth was undulating and vibrating at an increasing pace.This went on and I was waiting for it to stop-they always stop you see. But it didn't and by the time I knew this was the big one, the house and the ground were moving violently, not slowing, the noise was louder, a roaring of the earth and some of our many books falling, some glass breaking...many noises that I couldn't grasp in my non-Chilean gringa half asleep state. We stayed in bed by that time, knowing it was too late and hanging on to each other for dear life. It was pitch black (we have black out drapes so the nearly full moon won't interrupt our sleep) and the bed was wildly shaking, pitching...and there was so much noise I couldn't take in.And I was terrified but not just of this earthquake but truly I knew for those minutes the untapped, the unleashed power of the earth, of nature. Some will say "God" and "God's will" a lot but I don't see I was better to be "saved" over the over 700 that have died or the millions that are homeless. "There but for the grace of God go I.." -ha I say. It is luck. I hear of the old man clutching his dead wife and I know like the other Chilean older women, she probably went to church and was deeply religious. Chile is 80% or so Catholic-you commonly see people crossing themselves as they pass a church. We were just very, very lucky.

Some irony here, I had wished we lived in Santiago, where the "action" is...or on the coast. It turns out, this was a better place to be.

The house that was built here a couple years ago is perfect, no damage whatsoever. It is cement and brick design with heavy re bar throughout. Now we know how it will fare in an earthquake at least. we had only books toppled (but not the bookcase), the wine bottle on my bedside crashed to the floor(hey, nothing like a glass of good Chilean red wine before sleeping!) and some things scattered to the floor. A little clean up in the morning but really less than you would imagine. I keep my plates and glasses in the upper cabinets and not a one broke so (even though Chileans told me not to), it's okay after all.

There are many people looking for people and cell phones were mostly knocked out. Yes, cell phones and most people here use only cell phones. Google has a people finder here and Allchile is helping with the location of the missing here

Many messages like this... "am searching for info about my father Joop Wisse in Chillan.I am very worried about him, and want to know if he is alright." followed by messages of those looking and then....

"Thanks, the only thing i can do is sit and wait...and thats not easy.

I hope that my dad is allright and that i soon will hear from him.."

Some other assorted bits from stories:

President Michelle Bachelet said Sunday that the death toll had reached 708 and was likely to rise. She also issued an order that will send soldiers into the streets in the worst-affected areas to both keep order and speed the distribution of aid.She called the magnitude-8.8 earthquake “an emergency unparalleled in the history of Chile.”

I saw her speak on TV here and she looked so tired and sad.

Some 100 aftershocks were recorded in Chile of magnitude 5 or larger, according to the NEIC. The largest had a 6.9 magnitude. The Chile temblor's aftershock zone—the length of the affected faultline—stretches for 375 miles, far longer than the 37-mile aftershock zone in Haiti.

The aftershocks, although we haven't felt the 100 but there are many, are still frightening. A rumble, a slight trembling and I stop and wait...and hope...

Earthquakes are caused by friction between tectonic plates, which are essentially shards of the earth's crust. They slip-slide past each other, very slowly but inexorably. Sometimes they get stuck, then jerk forward again, producing a quake. The last big earthquake near this point on the faultline occurred in 1835—when Charles Darwin was sailing nearby—and had an estimated 8.5 magnitude. Since then, the plates at this location have been trying to move past each other, but have been locked in place. Over the ensuing 175 years, the stresses and strains gradually built up.

Some say the stress has been relieved now. Some say other parts will be more stressed. Some say volcanoes (Chile has hundreds) will become more active.

And finally, even though the earthquake in Chile was much stronger in terms of magnitude than Haiti's, it was not as bad for a couple reasons. The ground here in Chile is simply more stable and the shaking experienced was not as violent. the ground beneath Haiti "shook like jello". And what makes modern quakes particularly devastating are megacities located near seismically active zones. "Earthquakes don't kill people, buildings kill people," says David Wald of the National Earthquake Information Center of the USGS. And Chile is prepared to a much larger extent. "

We are organized and prepared to deal with a crisis, particularly a natural disaster," Rodriguez said. "Chile is a country where there are a lot of natural disasters."Calais, the geologist, noted that frequent seismic activity is as common to Chile as it is to the rest of the Andean ridge.

If you know Chileans, you know they have that inner warning system that made them jump out of bed and run outside as we shivered in our bed...

Fall is coming to Chile as I Muse

I notice I haven't posted anything for quite a while so I will-although I'm not quite sure where this is going yet. Fall is in the air here-no rain yet but a few cloudy days. A friend farther south in Valparaiso tells me it is raining a lot. Only a few weeks ago, she was boasting about the lovely rain they have every afternoon while there was none here. And it was hot, in the 90s for days. The weather may dictate what part of Chile you like and it can vary a lot....here in central Chile, it is hot, very hot days and no rain for months. It's a Mediterranean climate but know what that really means...I really didn't imagine it meant no rain. But the nights are still cool, maybe the best sleeping I have ever done has been in Chile. Central Chile has a nice long growing season but you better make sure you have accessible water or everything will die. Water rights are not automatic here-they are bought and sold separately so make sure you have them. Don't assume that because your neighbor has utilities, you have access-research carefully. The way everything works is completely different here and common sense may not apply-Rule #1 This Is Chile.

Anyway, I feel that slight crispness that says fall is coming. I see red maple trees starting to turn red. The US is experiencing snow in 49 states I hear. Spring should be there in another month or so-I hope. For many reasons, we are returning to the US for spring and summer at least. I hate winter and am not fond of it here either. It is rainy and humid cold that permeates through your clothes right to your bones. The local folks are not fond of heat-I have yet to see central heating. People commonly wear coats inside and the women wear pantyhose under their jeans (and that works btw). There is rarely snow but a frost covers the ground every morning in winter. People are frugal here and we in the US could learn something about that. Some sort of middle ground would be nice. I have been told by Chileans that brag of a once a week shower(I'm assuming a "spit" or whore's bath in between) and am tired of feeling apologetic of my American ways of desiring frequent showers. I love showers. They make me feel good and perky and ready to take on the day. I really tried to adjust but....so those are a couple of things that a big adjustment. Calefons are common here and are a great idea-instant hot water heater on your wall-a real space saver and endless hot water! The US has taken them and improved them. Definitely think its time has come.

The perfect life is to spend the warmer seasons in each country and that is my fervent hope. Chile is a second home but it will always be not quite home. When I go to the US, part of my heart stays in Chile. but I am US-made and part of me is always there. If only we could take the good ideas of both countries.

Pinera's Not Quite Insider Trading and he's Still a Billionaire

Pinera, who was a senator for eight years and ran unsuccessfully for president in 2005, ranked 701st among the world's billionaires in March with a net worth of $1 billion.. Yes, he still seems to be worth the same $1 billion for the past 5 or so years I've been able to track. Oddly, that doesn't square well with the fact that his LAN shares are worth around $1.5 billion. And with common sense finance that tells us our money doubles every 7 years or so("The easiest way to think of it is with the rule of sevens," said Jonathan Berk, assistant professor of finance at the Haas School of Business at the University of California at Berkeley. "If you put $100 into an account and compound it, it doubles every seven years." ) with simple interest compounding. So, how much is Pinera worth?It's obviously a well kept secret-Forbes has no idea either. I think they must call and ask "so, what can we put you down for this year Sebastian?" Research would be difficult and include adding up his stakes in television network Chilevision and his reported 13% of soccer club Colo-Colo.

Not to mention, it's still difficult because I'm sure he has become as clever at creating holding and shell companies as any wealthy American. But here's one. And from a 1999 article, I saw this "Through his investment holding Inversiones Bancard, Chilean businessman Sebastian Pinera increased his stake in Entel to 4.7%. Pinera is also expected to unite support from enough partners to be elected to the Entel board." And here's a little more: Chile, May 13, 2002Bancard, the investment company from Sebastian Pinera, has been purchasing shares in the stock market, pursuing a strategy to reinforce positions in the companies where it is already a shareholder. In 2001 Bancard has acquired a 2,79% stake in the electric company Colbun. It has stakes in Lan Chile and Parque Arauco, while it is appointed board members in Pampa Calichera, and Antarchi...

Here's the deal-this is one wealthy guy and his companies all have "stakes" in each other.
It's not only an extremely tangled web of holding companies within companies within companies owning each other, it's in English and Spanish!

So, about insider trading or as Mr. Pinera might put it "it just looks like it but really it's not"-sort of 'looks like a duck, quacks like a duck but no it's not" . On July 24, 2006, Chilean businessman, ex-senator and right-wing presidential candidate Sebastian Piñera bought three million shares of Lan Airlines, the company he partly owns. The following day, Lan released its first semester earnings: profits went up by 6.4 percent. The Superintendent’s Office for Assets and Securities (SVS) found Piñera’s activity suspect, and yesterday charged him with violating a law that would have precluded him from acquiring shares, after the agency concluded its six month investigation.

According to the SVS, the regulatory body charged with overseeing financial transactions in the stock and securities markets, Piñera’s purchase of the shares the day before the company revealed its good news breached Article 165 of a 1981, which prohibits anyone with privileged information from making trades on the basis of it.

Here's the part I love: "For his part, Piñera flatly denies any wrongdoing. He defended the purchase by arguing that it was not inconsistent with market tendencies; that the share price raised because it was known that Piñera had bought more stock; and that the actual date of the transaction was decided by a foreign broker."

So the share price didn't go up because earnings were up(and that is the general consensus in the financial biz-when earnings are way up, so goes the stock but never mind) the stock went up because Pinera bought more stock. All these years and we have had it backwards-just buy what "they" buy. And his other defense was that the stock was bought by a "foreign broker". How interesting but I don't guess we'll ever know where the stock was held. And because he is Chilean, the SEC can't touch him, I'd guess. And their Chilean counterpart has to keep track of holdings here and there. Not even possible.

So, he bought 3 million shares but I can't find how much he made. Was it the Chilean stock market or the US market? So I can't research the price he paid or the price history after the earnings report came out. The fine was $680,000 to $700,000 USD depending on the account you read. The fine would be in Chilean pesos(chp) so you have the currency exchange rate to contend with.

And how are international companies and their holding companies dealt with at all? I think abolishing holding companies would be a start so we can see who owns what-for real.

Note: I see when I published. I somehow lost all my links-and there are many! I will work to get them back on.

The 2010 Chile Presidential Election-More Thoughts

First, my opinions in regards to some interesting questions from a commenter-and ones that others may also have.

"Why do you think the current candidate Frei isn't running with high poll numbers like Bachelet's?"

Michelle Bachelet is extremely smart and likable, a good politician. Frei is...well. pretty boring and was President before(from 1994 to 2000) Look for Bachelet to run again after this 4 year term(you can run again but not consecutively here). Frei will continue policies put forth by Bachelet. So it's the old Frei but with someone else's good ideas. And President Bachelet has been fairly quiet in her support until recently, which is her character-she has never mentioned in public(to my knowledge) the well known fact that her father was killed under Pinochet-as was Frei's father and MEO's father.

"Why is the conservative Pinera doing so well?"

People want change even when they don't know what that change might be. And I think many think a wealthy man like Pinera as President means this translates to their own future wealth. I have heard comments that a wealthy man doesn't need money and therefore won't be greedy(in that case they should look to the US and Pinera's insider trading-and maybe the bank of Talca)Pinera's best issue was crime(and Bachelet's weakest). They are trying to change the system here-rights to trial etc that is a difficult transition. Also, I think most don't understand that the president's hands are tied largely because the constitution created under Pinochet is in force still and very, very difficult to change. And you still have Pinochet supporters, I think about 20%. Hard to believe but true. Pinera has distanced himself from many right wing policies knowing that he has the support of the right no matter what he says, picking up those votes in the middle.

"Also - what do you think is the effect of a rule that all must vote? Does that produce more conservative results, or more left-liberal?"

Good question. Many still don't vote at this time in spite of so-called mandatory voting. And the young voters aren't turning out in large numbers. And they recently changed the rule. People of voting age will automatically be registered in the future but it will no longer be mandatory to vote. Also Chileans that live out of the country will be able to vote absentee in future elections. The voting issue was a change due to MEO influence. And absentee voters will include leftists that expatriated during the Pinochet years(ie Isabelle Allende-the writer) as well as right wingers (Jose Pinera-famous for privatization "reforms" he instigated under Pinochet). Note: I love Isabelle Allende's books notably "My Invented Country" and really, really think Jose and his supporters should mention that these "reforms" took place under a dictatorship and are, therefore, not democratic as likes to pretend.

Pinera has made some mistakes recently. He avoided a question in the last debate when a reporter asked him if he would ask MEO to join his government-MEO came out only days later and endorsed Frei. From the NYT: "In recent weeks, the government of Michelle Bachelet, Concertación’s popular president, agreed to fast-track some initiatives espoused by Mr. Enríquez-Ominami, in the hope of helping Mr. Frei’s chances. The initiatives include education and water reforms, and a measure to make voting registration automatic but voting voluntary, reversing the current system in which voting is mandatory for life once a voter is registered. Mr. Enríquez-Ominami had blamed that system for a sharp decline in new voter registration." In other words, the Concertacion is willing to listen, the right not so much. I think Pinera thought he had this won and became complacent.

Pinera also came out against José Miguel Insulza, Secretary-General of the Organization of American States (OAS). Whatever Chilean politics, left or right, Chileans love Chileans and there is a lot of pride and patriotism-and that includes Insulza. And communist left wing poets(see Pablo Neruda). Or Victor Jara, the singer and songwriter.

I read of MEO's 20% of 1st round votes (that both candidates want) a poll found that 44 percent of those who voted for Mr. Enríquez-Ominami said they would vote for Mr. Frei while 20 percent would vote for Mr. Piñera; 21 percent said they would vote for neither candidate. With MEO's endorsement of Frei, there is a possibility of wresting some the 21% that say they won't vote as well as a real possibility that Pinera will lose some of that 20%.

And the voting has begun. I hear polls close at 4 pm.

Edit: Looks like Frei conceded. Pinera took 51.87 percent of the vote with 60.3 percent of polling stations counted, compared to 48.12 percent for Frei.

The 2010 Chile Presidential Election

Tomorrow is the day-the runoff between Center left Eduardo Frei and Sebastian Pinera on the right.

Results from the first round of Chile’s presidential election—held on Dec. 11—placed Piñera ahead with 44.05 per cent of all cast ballots, followed by Frei with 29.60 per cent, independent candidate Marco Enríquez-Ominami with 20.13 per cent, and left-wing candidate Jorge Arrate with 6.21 per cent.

Sebastián Piñera holds a slight edge as in Chile’s presidential run-off, according to a poll by MORI. 50.9 per cent of decided voters would support the candidate of the centre-right Coalition for Change (CC) in tomorrow’s election.Former president Eduardo Frei Ruiz Tagle of the centre-left Agreement of Parties for Democracy (CPD) would finish a close second with 49.1 per cent.

The race is now dead even, for all practical purposes as the difference lies within the 3% margin of error. It has been a race to see who can garner MEO's 20% and MEO announced that he would support Frei.

"Given the uncertainty that the right could block Chile's march toward the future, it is my responsibility to contribute what I can so it doesn't happen," Enriquez-Ominami, the son of a leftist guerrilla leader slain during General Augusto Pinochet's 1973-1990 dictatorship, told a news conference in parliament.

"So I formally declare my decision to support the people's candidate who won 29 percent of the vote on December 13," he said, referring to Frei, whom he had until now refused to endorse despite repeated appeals and concessions by the ruling coalition.

http://www.reuters.com/article/idUSN1313013020100113

You'll find the candidates promises here:

I see the main issue of privatizing CODELCO(Chile's state owned copper mine) further as Pinera would like to do and CODELCO filled Chile's treasury nicely in the past few years. Frei will keep things the way President Bachelet has or a continuation of her policies. She enjoys record high approval ratings of 80% or so. MEO's support is late but big news because the race is so tight already-a small percentage could swing things.

I have googled and read a million articles, watched debates in spanish and now know an unbelievable amount about Chilean elections. I guess I like politics.