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Greeks Told To Declare Cash “Under The Mattress”, Jewelry And Precious Stones

Greeks Told To Declare Cash “Under The Mattress”, Jewelry And Precious Stones

When earlier today we read a report in the Greek Enikonomia, according to which Greek taxpayers would be forced to declare all cash “under the mattress” (including inside) or boxes that contain more than 15,000 euros as well as jewelry and precious stones (including gold) worth over 30,000 euros, starting in 2016, we assumed this has to be some early April fools joke or a mistake.

After all, this would be merely the first step toward full-blown asset confiscation, conducted so many times by insolvent governments throughout history, once the government cracks down on those who made a “mistake” in their asset declaration form or simply refuse to fill such a declaration, thereby making all their assets eligible for government confiscation.

It was not a joke.

Here is the take of Keep Talking Greece, whose stunned response mirrors ours.

Cash “under the mattress” totaling more than 15,000 euro, jewelry and other valuable items such as diamonds and gemstones, should be declared to electronic system of tax authorities, Taxisnet, as of 1 January 2016. Next to properties and vehicles and shares, now the taxpayers will also have to declare their deposits. And not only that. They will have to fill if they rent bank lockers and if yes, also the name of the bank and the branch, even if abroad.

A joint ministerial decision issued by the Ministries of Justice and Finance indicates that taxpayers in Greece should add all their valuables into a new category of the tax declaration, the “Assets declaration.”

Specifically, the decision provides that:

“Assets declarations” are submitted electronically and mandatory via Taxisnet.
Starting date for the submission is 1.1.2016

Declared must be cash money if more than 15,000 euro and precious items if their total value exceeds 30,000 euro. These amounts apply cumulatively per household (husband, wife, underage children).

To facilitate the completion of the declaration, data from the income statements (E1 and E9) will be drawn automatically.

…click on the above link to read the rest of the article…

Puerto Rico Is About To Default: Your Complete Guide To An Island Debt Debacle

Puerto Rico Is About To Default: Your Complete Guide To An Island Debt Debacle

Last week, we brought you the latest from Puerto Rico’s debt debacle. The commonwealth is desperately trying to restructure some $72 billion in debt while staring down a $354 million bond payment due on December 1.

As we discussed at length on Friday, some $270 million of what’s due next week is GO debt guaranteed by the National Public Finance Guarantee Corp. Defaulting on that is bad news and as Moody’s warned earlier this month, a missed payment on the commonwealth’s highest priority obligations “would likely trigger legal action from creditors, commencing a potentially drawn-out process absent swift federal intervention.” 

Make no mistake, federal intervention is likely to be anything but “swift.”

A Senate judiciary committee headed by Iowa Republican Charles Grassley will meet on December 1 to discuss a legislative proposal to assist the Padilla government, but it’s hard to imagine that a decision will be made in time to avert at least a partial default.

Ultimately, the decision will be between paying bondholders and ensuring that the government can continue to provide public services, and just as Greece prioritized pensions over IMF payments last summer, Padilla isn’t likely to sacrifice the public interest at the altar of the island’s debtors. 

So, as the clock ticks, we bring you the following helpful guide courtesy of Bloomberg who has made a “list of the island’s debt, how much is outstanding, when major monthly payments are due, and the source of funds that back the securities.”

*  *  *

From Bloomberg

  • Puerto Rico Sales Tax Financing Corp.: $15.2 billion. The bonds, known by the Spanish acronym Cofinas, are repaid from dedicated sales-tax revenue. A $6.2 billion portion of the debt, called senior-lien, is repaid first. The remaining $9 billion, called subordinate-lien, get second dibs. $1.2 million of interest is due in February and again in May. Senior Cofinas maturing in 2040 last traded for an average yield of 9.5 percent, while subordinate ones yielded 18 percent.

…click on the above link to read the rest of the article…

50 Ways to Leave the Euro: Greece and the Global Crisis

50 Ways to Leave the Euro: Greece and the Global Crisis

A sticker reads “No” on the palm of a protester during a demonstration calling for a ‘No’ vote in the upcoming referendum in Athens on Jul 3, 2015. (Photo: AFP/Aris Messinis)

The problem is all inside your head, I told the Greeks
The answer is easy, you need only stop the leaks
The power is yours to claim the freedom that you seek
There must be fifty ways to leave the Euro
          (Apologies to Simon and Garfunkel)

Following the resounding “NO” vote by the Greek people on the bailout conditions in the July referendum, the negotiations between the Greek government and “the institutions” resumed with the expectation that a better deal for Greece would ensue. The outcome was quite the contrary. Greek negotiators ended up agreeing to a bailout deal that was far more onerous than the one the voters had rejected. Why?

The harsh reality is that the Greek government is insolvent. Having been lured into the debt-trap and the shared euro currency by western oligarchs using a combination of measures, including outright fraud, Greece was forced to accept the onerous conditions attached to the first two bailouts. Now it has been bludgeoned into accepting a third. The weapon of choice is the euro currency itself which is being wielded by the European Central Bank (ECB). By throttling the flow of euro currency into the country, the ECB last summer created near chaos in the Greek economy. This, and the threat of even more severe punishment in the future, was enough to bring the Greek government to heel.

With sovereign debt up around 180% of GDP, there is no way that the Greek government will ever be able to grow its way out of the current mess. The draconian measures demanded by the creditor institutions will just make it worse. Even the IMF has acknowledged (with apparent reluctance) that some debt relief is necessary for the Greek economy to recover.

…click on the above link to read the rest of the article…

“Social Explosion” Begins In Greece As Massive Street Protests Bring Economy To A Fresh Halt

“Social Explosion” Begins In Greece As Massive Street Protests Bring Economy To A Fresh Halt

One thing that became abundantly clear after Alexis Tsipras sold out the Greek referendum “no” back in the summer after a weekend of “mental waterboarding” in Brussels was that the public’s perception of the once “revolutionary” leader would never be the same. And make no mistake, that’s exactly what Berlin, Brussels, and the IMF wanted.

By turning the screws on the Greek banking sector and bringing the country to the brink of ruin, the troika indicated its willingness to “punish” recalcitrant politicians who pursue anti-austerity policies. On the one hand, countries have an obligation to pay back what they owe, but on the other, the subversion of the democratic process by using the purse string to effect political change is a rather disconcerting phenomenon and we expect we’ll see it again with regard to the Socialists in Portugal.

After a month of infighting within Syriza Tsipras did manage to consolidate the party and win a snap election but he’s not the man he was – or at least not outwardly. He’s obligated to still to the draconian terms of the bailout and that means he is a shadow of his former self ideologically. As we’ve said before, that doesn’t bode well for societal stability.

On Thursday, we get the first shot across the social upheaval bow as the same voters who once came out in force to champion Tsipras and Syriza are staging massive protests and walkouts. Here’s Bloomberg:

As Greek workers took to the streets in protest on Thursday, Alexis Tsipras was for the first time on the other side of the divide.

…click on the above link to read the rest of the article…

Merkel Must Call Highest Level UN Emergency Summit Over Refugees

Merkel Must Call Highest Level UN Emergency Summit Over Refugees

German Chancellor Angela Merkel needs to do something, urgently, that should have been done months- if not more- ago. There has to be a UN emergency summit on the European refugee crisis, it has to involve leaders at the very highest levels, and it has to take place within weeks at the latest. Or else.

Of course any leader could call for the summit, and if Merkel waits too long -as she is wont to do- someone else should. But she is the best person for the job. No-one else who leads an entire continent looks ready to take this on, and moreover it’s her own country that quite possibly faces the gravest consequences of the crisis.

That is to say, for now Germany still comes in way after Greece in that regard, but if Alexis Tsipras would attempt to call such a summit, his appeal would fall on deaf ears, and at best lead to lots of international Merkel-style diddling (or ‘Merkeln’, as the Germans put it). And there’s already been far too much of that.

The renewed urgency comes from a number of directions. First, the continuing drownings of refugees in the Aegean sea. The lack of urgency with which those drownings have been met has become a huge and immediate threat to Merkel, if only because the entire European project has already died with the babies washing up on the shores of Greece.

Even if it will take a long time for people to recognize that, given the ideological ‘union’ blindness that pervades Brussels and European capitals. Angela’s legacy risks being not only her responsibility for thousands of deaths, but also the very demise of the EU. And that’s just for starters.

Secondly, It was Merkel herself last week who warned of renewed military conflicts in the Balkans if the approach to the refugee crisis wouldn’t change, and rapidly.

…click on the above link to read the rest of the article…

Venezuela Default Countdown Begins: After Selling Billions In Gold, Caracas Raids $467 Million In IMF Reserves

Venezuela Default Countdown Begins: After Selling Billions In Gold, Caracas Raids $467 Million In IMF Reserves

In late October, when describing Venezuela’s desperate steps to keep itself afloat for a few more months, we reported that in order to fund $3.5 billion bond payments in early November, Maduro’s government had engaged in something that is the very definition of insanity: selling the country’s sovereign (and pateiently repatriated by his deceased predecessor) gold to repay creditors.

Specifically, in the past several months, Caracas has quietly parted with 19% of its gold holdings: “Central bank financial statements posted this week on its website show monetary gold totaled 91.41 billion bolivars in January and 74.14 billion bolivars in May.  At the strongest official exchange rate of 6.3 bolivars per U.S. dollar, which the bank uses for its financial statements, that decline would be equivalent to $2.74 billion.”

But while ridiculous, Venezuela’s decision to liquidate some of its gold is perhaps understandable under the circumstances: Venezulea relies on crude oil for 95% of its export revenue, and with prices refusing to rebound, the only question is when do all those CDS which price in a Venezuela default finally get paid.

What is even more understandable is what Venezuela should have done in the first place before dumping a fifth of its gold, but got to do eventually, namely raiding all of the IMF capital held under its name in a special SDR reserve account. 

Recall that this is precisely what Greece did in July when everyone was speculating when it would default. Now its Venezuela’s turn.

The details: Reuters reports that Venezuela withdrew some $467 million from an IMF holding account in October, according to information posted on the fund’s web-site, as the OPEC nation seeks to improve the liquidity of its reserves amid low oil prices and a severe recession.

…click on the above link to read the rest of the article…

 

2.1 Million Greeks Face Blackout As Public Power Company Unpaid Bills Soars

2.1 Million Greeks Face Blackout As Public Power Company Unpaid Bills Soars

Greece’s Public Power Company is angry. The amount of unpaid bills by its customers has reached the astronomic EUR 2.5 billion. The PPC is so angry that it plans to cut the power to those without outstanding debts as soon as possible – a whopping 2.1 million Greeks face darkness.

 

As KeepTakingGreece reportsmany Greeks cannot afford to pay the bi-monthly bill mostly because the amount to be paid doubles due to added extra fees like emissions, green-whatever, municipality fees, state tv fees,  etc.

For example bi-monthly electricity consumption is estimated by DEH to be €52 but i am asked to pay €100 becausee of the extra charges. The bill includes 13% Value Added Tax but also “interest” of €0.44 although I pay per monthly bank order and I am never late. Every 4 months I receive a bill based on my real consumption – and not just an ‘estimation’ – and then I find my self in a state of passing out. Summer months are more expensive due to the use of A/C, winter months are also expensive due to the use of electric devices like A/C to heat the apartment. Bills explode to several hundred euros.

I am not alone in my struggle to pay the bill. But many cannot even afford it.

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According to Greek media reports, 2.1 million consumers have outstanding debts to the Greek PPC. They are private households, businessmen of small and medium enterprises, merchants, craftsmen.

Now the PPC plans to “turn the power off” and leave them in the dark. Not without previous notice, though. It will send consumers a warning and if they won’t comply, they will desperately seek to turn on the lights in the evening, cook for their kids, keep the cheese in the fridge, use their wireless phone, watch tv, heat their homes opr complain about their situations on the internet.

The business debts are reportedly 1.8 billion euro.

…click on the above link to read the rest of the article…

 

Vladimir Putin Speaks Honestly

Vladimir Putin Speaks Honestly

Russia’s president is a refreshing contrast to the liars who inhabit Western governments and Western media. The agenda of the Russian government is peace and international cooperation under the rule of law. Washington’s agenda is hegemony.

President Putin endeavors to lead the world to peace, while the neoconservatives who control Washington’s foreign policy try to drive the world to war. Contrast the crazed statements that flow from Washington comparing President Putin to Hitler, suggesting his assassination, and calling for shooting down Russian military aircraft with President Putin’s appeal that Washington abandon its hegemonic agenda and submit to international law and international cooperation. As President Putin has emphasized, for Washington “international cooperation” means submission to Washington’s will.

President Putin repeatedly states that governments must govern in accord with the people and not function as a decree-issuing body in accord with interest groups disrespectful of the people.
Throughout the West we see the increasingly unresponsive behavior of government. In the United States careful studies conclude that, despite elections, the American people have essentially zero input into the policies decided in Washington. In Greece, the government is coerced to impose on the Greek people policies dictated by large German banks supported by the German and EU governments. In Portugal, the socialists who won the election were told by the conservative president that they would not be permitted to form a government. In the UK, a senior military official stated that the military would not permit Jeremy Corbyn to form a Labour government should the Labour Party win the election. The United States government threatens the governments of Venezuela, Ecuador, Bolivia, and Argentina for representing the interests of the voters who put them in office instead of Washington’s interests. The United States government has destroyed American civil liberty with its unconstitutional mass surveillance, indefinite detention without charges, and murder of US citizens without due process of law. Dissent itself is in the process of being criminalized.

…click on the above link to read the rest of the article…

First Sovereign Debt Default 4th Century BC

First Sovereign Debt Default 4th Century BC

QUESTION: Mr. Armstrong; I read this time its different by Rogoff. While it is interesting about sovereign defaults, he clearly does not go back into ancient times or more than a few hundred years. If anyone would know when the first such default took place it must be you. Any idea?

ANSWER: Yes. The first such default that is definitively recorded took place at least in the 4th century B.C., when ten out of thirteen Greek municipalities in the Attic Maritime Association defaulted on loans from the Delos Temple of Apollo.

Athens-Emergency

You must understand that historically, most fiscal crises were resolved through either war where the loser’s debt evaporates as Germany after WWI or the Confederate States in USA as two examples, or by currency debasement by either inflation or devaluation. This is demonstrated by numerous city debasements or reduction in weight of gold and silver coinage. One of the earliest debasements was during 404BC in Athens in the war with Sparta. The silver coinage was reduced to bronze and silver plated.

Lydia-Debasement

Lydia, which is where coins were invented, reduced the weight of their Stater due to war with the Persians, Cyrus the Great. This is how money supply still increased even if it was gold or silver. It never matters what is money, economic forces always conspire to create the natural course of inflation (assets rise and money declines). There is a cycle as we are going through right now of the opposite trend deflation because no single trend can be sustained without change. Hold your arm straight up above your head. Now keep it there. You will run out of energy and your arm will feel tremendously heavy causing you to put it back down. Everything works that way yet people try to deny cycles. Nothing but nothing can be sustained without change – N O T H I N G!

Byzantine-Debasement

…click on the above link to read the rest of the article…

Greek Bad Debt Rises Above 50% For The First Time, ECB Admits

Greek Bad Debt Rises Above 50% For The First Time, ECB Admits

It was almost exactly one year ago, on October 26, 2014, when the ECB concluded its latest European Stress Test. As had been pre-leaked, some 25 banks failed it, although the central bank promptly added that just €9.5 billion in net capital shortfall had been identified. What was more surprising is that to the ECB, the Greek banks – Alpha Bank, Eurobank Ergasias, National Bank of Greece, and PiraeusBank had entered Schrodinger bailout territory: they had both failed and passed the test at the same time. To wit:

These banks have a shortfall on a static balance sheet projection, but will have dynamic balance sheet projections (which have been performed alongside the static balance sheet assessment as restructuring plans were agreed with DG-COMP after 1 January 2014) taken into account in determining their final capital requirements. Under the dynamic balance sheet assumption, these banks have no or practically no shortfall taking into account net capital already raised.

Got that? According to the ECB, last October Greek banks may have failed the stress test, but under “dynamic conditions” they passed it. What this meant was unclear at the time, although as we explained this was nothing more than an attempt to boost confidence in Europe’s banking sector. This was the key quote from the ECB’s Vítor Constâncio: “This unprecedented in-depth review of the largest banks’ positions will boost public confidence in the banking sector. By identifying problems and risks, it will help repair balance sheets and make the banks more resilient and robust. This should facilitate more lending in Europe, which will help economic growth.”

It didn’t.

…click on the above link to read the rest of the article…

 

When conspiracy is not a theory: an example of a false flag operation in the Italian invasion of Greece in 1940

When conspiracy is not a theory: an example of a false flag operation in the Italian invasion of Greece in 1940

 
The Italian attack against Greece, that started in October of 1940, was one of the greatest military blunders of history and it may be argued that it cost the axis powers the whole war. Here, I discuss how the attack provides is one of the few documented cases of a  strategic “false flag” operation designed in order to create a pretext for a military attack. (Image: Italian infantryman of the Italo-Greek war, from the front cover of “Storia della Guerra di Grecia” by Mario Cervi)

False flag attacks are a popular item, nowadays: secret operations carried out by governments to place the blame on their political or military enemies. However, If you try to examine the question in any depth, you immediately find yourself facing an incredible variety of claims and counter-claims. On one side, there are those who simply laugh at the conspiracy theorists and at their funny antics, and, on the other, those who list case after case of presumed false flag attacks, including everything from the sinking of the Titanic to the blowing up of a tire of uncle Joe’s truck. So, do strategic false flag attacks exist? And, if so, how common they are?

There are several cases of strategic false flag that are almost certain or, at least, very probable. Perhaps the best example of a documented false flag attack is that of the “Gleiwitz incident” of Aug 31, 1939, when Nazi forces posing as Poles attacked a German radio station, performed in order to justify the German attack on Poland. A more recent case is that of  “Operation Northwood” which, however, was never actually carried out. There are many more examples where false flag attacks are claimed, but cannot be proven. The best example, here, is the the Reichstag fire, in Berlin, in 1933; for which many details are not completely clear.

…click on the above link to read the rest of the article…

Schäuble’s Gathering Storm

Schäuble’s Gathering Storm

Europe’s crisis is poised to enter its most dangerous phase. After forcing Greece to accept another “extend-and-pretend” bailout agreement, fresh battle lines are being drawn. And, with the refugee influx exposing the damage caused by divergent economic prospects and sky-high youth unemployment in Europe’s periphery, the ramifications are ominous, as recent statements by three European politicians – Italian Prime Minister Matteo Renzi, French Economy Minister Emmanuel Macron, and German Finance Minister Wolfgang Schäuble – have made clear.

Renzi has come close to demolishing, at least rhetorically, the fiscal rules that Germany has defended for so long. In a remarkable act of defiance, he threatened that if the European Commission rejected Italy’s national budget, he would re-submit it without change.

This was not the first time Renzi had alienated Germany’s leaders. And it was no accident that his statement followed a months-long effort by his own finance minister, Pier Carlo Padoan, to demonstrate Italy’s commitment to the eurozone’s German-backed “rules.” Renzi understands that adherence to German-inspired parsimony is leading Italy’s economy and public finances into deeper stagnation, accompanied by further deterioration of the debt-to-GDP ratio. A consummate politician, Renzi knows that this is a short path to electoral disaster.

Macron is very different from Renzi in both style and substance. A banker-turned-politician, he is President François Hollande’s only minister who combines a serious understanding of France’s and Europe’s macroeconomic challenges with a reputation in Germany as a reformer and skillful interlocutor. So when he speaks of an impending religious war in Europe, between the Calvinist German-dominated northeast and the largely Catholic periphery, it is time to take notice.

Schäuble’s recent statements about the European economy’s current trajectory similarly highlight Europe’s cul-de-sac. For years, Schäuble has played a long game to realize his vision of the optimal architecture Europe can achieve within the political and cultural constraints that he takes as given.

Read more at https://www.project-syndicate.org/commentary/germany-versus-france-italy-by-yanis-varoufakis-2015-10#BYuW6MBRmDtgTE3W.99

 

Treasury Warns Of “Humanitarian Crisis” In Puerto Rico If Congress Does Not Agree To Bailout

Treasury Warns Of “Humanitarian Crisis” In Puerto Rico If Congress Does Not Agree To Bailout

“Puerto Rico is not Greece“… but it increasingly looks like it will be in a few weeks, thanks to US taxpayers who are about to foot the bill for yet another creditor bailout.

As we reported last night, creditors of the insolvent commonwealth, hoping to get a bailout and the highest possible return on their bond investment courtesy of the US taxpayer, have been pushing to portray the fiscal situation in Puerto Rico as beyond repair, hoping to force the administration and Congress to act. As The NY Times reported, on Wednesday, Puerto Rico took the unusual step of announcing that talks over restructuring about $750 million of the island’s debt had broken off, a move that some creditors saw as posturing to Washington for help.

Then, all day today, Puerto Rico’s leadership, realizing its interests are suddenly alligned with those of its creditors as a bailout is in everyone’s best interest, took the rhetoric up a notch when the island’s Governor Alejandro Garcia Padilla said in written testimony for Senate Energy Committee that Puerto Rico will have negative cash balance of $29.8 million in November 2015, and then added that the Puerto Rico Government Development Bank may be unable to make its $355 million debt service. “These GDB bonds are supported by a guarantee from the Commonwealth, and the GDB, which faces its own liquidity crisis, is not expected to be able to make the payment on its own based on current information.”

Others quickly chimed in: Puerto Rico Senate President Eduardo Bhatia said he would be in favor of “including everything” in a broad, comprehensive restructuring of the debt.

In short: bail us out now or face the consequences of a domino effect of defaults which puts not only the creditors, but the island itself, in dire straits.

…click on the above link to read the rest of the article…

 

Visualizing The Demise Of The Once Mighty Euro

Visualizing The Demise Of The Once Mighty Euro

The European Union has always been primarily a political project. The idea of the union was to take peoples that had long and complicated histories, and to place them in a situation where they must work together and shed their differences in order to achieve success.

From the political angle, it can be argued that this objective has been achieved. War and conflict within Western and Central Europe has mostly been stymied. Considering the continent’s lengthy history in these areas, this is great news.

However, it’s particularly the countries that adopted the euro as common currency that put themselves into a more precarious economic position. The problem is simple: countries maintain certain political and fiscal responsibilities, but do not control the fate of their common currency.

The result is that eurozone politicians have very different fiscal policies, but don’t have the flexibility of monetary policy to help accompany them. Some countries are trying to spend their way out of trouble, while others are maintaining strict austerity. Either way, the European Central Bank (ECB) controls the plight of the currency and can make unilateral decisions that have a big impact on every country. For example, in the beginning of June 2015, the ECB announced the minimum of a $1.14 trillion quantitative easing program that will add new currency units that together are larger than the economies of Ireland, Greece, Portugal, Finland, Luxembourg, and Slovenia combined.

There has been an array of other problems plaguing the eurozone as well. The most notable of these was that Greece was admitted into the monetary union in the first place after fudging numbers on the Greek economy. Even though Greece makes up about 2% of the overall eurozone, the country has been in constant trouble that has threatened to undermine the entire union. (For a primer on this, read The Origin of the Greek Crisis)

…click on the above link to read the rest of the article…

 

Leaving the Eye of the Hurricane

Leaving the Eye of the Hurricane

In the early 2000’s, there were those economists and investors who believed that the U.S. was headed for an economic fall – that the repeal of the Glass-Steagall Act in 1999 would allow the financial institutions to enter into widespread reckless loan practices that would lead to a housing crash. And that that crash would lead to a stock market crash that would herald in The Great Unravelling – The Greater Depression.

Most of us who made these predictions hypothesized that the initial collapse would be significant, but not severe – that the governments of the world would come to the rescue with bailout programmes that would stave off the symptoms of the problem, but would do nothing to cure the disease itself – that of massive debt.

We suggested that there would be a false recovery, resulting in the easing of symptoms. There would be repeated claims by both governments and the media that “recovery is nigh.” However, underneath all the folderol, the disease would worsen considerably, eventually reaching the point at which the patient (the economy) could not be saved. At some point, public confidence in the leaders’ abilities to resuscitate the body would fade. This would be triggered by some event or events, such as a crash in the stock or bond market, a dumping of debt back into the U.S. by creditor nations, debt default by Greece or some other nation, commodity price spikes, backlash from sanctioned nations, the imposition of protective tariffs – any one of a dozen possible triggers would do the trick. From that point on, each of the other triggers would eventually occur, as toppling dominoes, fulfilling the prediction of Depression.

Only in this latter period would the dreaded “D-word” be acknowledged by the governments and media.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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