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Rumors of New Bank Bailouts in Spain

Rumors of New Bank Bailouts in Spain

Just when the government touts its miracle economy!

Spain will hold do-or-die general elections on December 20. The Rajoy government hopes that recent improvements in economic performance will be enough to cast its gargantuan political scandals to the back of voters’ minds.

The economy is firing on all cylinders, it claims. To paraphrase Finance Minister Cristobal Montoro, Spain’s economy should serve as a shining example to the world. It is expected to grow by 3% this year, no mean feat in a region plagued by sub-par growth.

However, not everybody’s buying the government’s version of reality: poverty is growing at a startling rate, unemployment continues to hover on the wrong side of the 20% mark, and public debt is almost three times what it was at the beginning of the crisis [read: Six Nagging Facts About Spain’s Recovery].

To make matters worse, the European Commission has just pointed out, albeit as quietly as possible, that despite all the untold billions spent over the last four years trying to save Spain’s rickety financial system, the risk exposure of Spanish banks remains inordinately high. Many banks have been caught engaging in “abusive” mortgage lending practices and could end up having to pay back customers billions of euros.

But not until after the elections!

For years now, Spanish banks have been featuring so-called “floor clauses” in their variable-rate home mortgages, often without informing homebuyers. The variable rate is usually based on Euribor plus a differential. But these clauses set a “floor” or minimum interest rate that clients have to pay the bank, even if Euribor drops far below that figure. And in today’s zero-interest-rate environment, with Euribor at 0.05%, that can make a big difference.

…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…

 

21 Facts About The Explosive Growth Of Poverty In America That Will Blow Your Mind

21 Facts About The Explosive Growth Of Poverty In America That Will Blow Your Mind

Poverty In America - Public DomainWhat you are about to see is more evidence that the growth of poverty in the United States is wildly out of control.  It turns out that there is a tremendous amount of suffering in “the wealthiest nation on the planet”, and it is getting worse with each passing year.  During this election season, politicians of all stripes are running around telling all of us how great we are, but is that really true?  As you will see below, poverty is reaching unprecedented levels in this country, and the middle class is steadily dying.  There aren’t enough good jobs to go around, dependence on the government has never been greater, and it is our children that are being hit the hardest.  If we have this many people living on the edge of despair now, while times are “good”, what are things going to look like when our economy really starts falling apart?  The following are 21 facts about the explosive growth of poverty in America that will blow your mind…

#1 The U.S. Census Bureau says that nearly 47 million Americans are living in poverty right now.

#2 Other numbers from the U.S. Census Bureau are also very disturbing.  For example, in 2007 about one out of every eight children in America was on food stamps.  Today, that number is one out of every five.

#3 According to Kathryn J. Edin and H. Luke Shaefer, the authors of a new book entitled “$2.00 a Day: Living on Almost Nothing in America“, there are 1.5 million “ultrapoor” households in the United States that live on less than two dollars a day.  That number has doubled since 1996.

#4 46 million Americans use food banks each year, and lines start forming at some U.S. food banks as early as 6:30 in the morning because people want to get something before the food supplies run out.

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

‘Developed’ nations now $50 TRILLION in debt; literally, figuratively bankrupt for infrastructure, public services

‘Developed’ nations now $50 TRILLION in debt; literally, figuratively bankrupt for infrastructure, public services

I continue to factually assert that Benjamin Franklin already “discovered” government can operate without taxes, these superior mechanics were considered so important by Thomas Edison and Henry Ford that they dedicated their 1921 summer vacation as a media tour to communicate directly to the public, and Yale economist Irving Fisher found 86% of economics professors across the US in agreement that creating debt-free money for direct payment for public goods and services is superior to our system of creating what we use for money as debt owed to private banks.

I also factually assert that the US $18 trillion debt, and the so-called “developed” and “leading” nations have total central government debt pushing $50 trillion ($50,000,000,000,000; the linked graphic updated with 2015 data). This accelerating debt is directly connected to these “former” colonial nations creating what is used for money as debt through bank oligarchies. These mechanics are like adding negative numbers forever; causing ever-increasing and unpayable aggregate debt.

Two minute video for you to visualize the US national debt:

This system we have is literally and figuratively bankrupt.

It’s also literally irresponsible (unable to respond) in face of deaths from preventable poverty since 1995 being greater than all wars and violence in recorded human history.

Better read the above sentence twice.

Now, please experience the feeling of what kind of leadership would allow ongoing and staggering numbers of children to suffer slow and gruesomely painful deaths when solutions are known, easy to apply, and all for less than 1% of the so-called “developed” nations’ income.

Maybe that kind of “leadership” is expressed by three former US Treasury Secretaries interviewed by Sheryl Sandberg, a former Chief of Staff for a fourth former US Treasury Secretary in this one-minute exchange with grandiose laughter about their euphemism for poverty, “income inequality”:

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

Leaving Our Children Nothing

Leaving Our Children Nothing

Our generation has a unique opportunity. If we set our minds to it, we could be the first in human history to leave our children nothing: no greenhouse-gas emissions, no poverty, and no biodiversity loss.

That is the course that world leaders set when they met at the United Nations in New York on September 25 to adopt the Sustainable Development Goals (SDGs). The 17 goals range from ending poverty and improving health to protecting the planet’s biosphere and providing energy for all. They emerged from the largest summit in the UN’s history, the “Rio+20” conference in 2012, followed by the largest consultation the UN has ever undertaken.

Unlike their predecessor, the Millennium Development Goals, which focused almost exclusively on developing countries, the new global goals are universal and apply to all countries equally. Their adoption indicates widespread acceptance of the fact that all countries share responsibility for the long-term stability of Earth’s natural cycles, on which the planet’s ability to support us depends.

Indeed, the SDGs are the first development framework that recognizes a fundamental shift in our relationship with the planet. For the first time in Earth’s 4.5-billion-year history, the main factors determining the stability of its systems are no longer the planet’s distance from the sun or the strength or frequency of its volcanic eruptions; they are economics, politics, and technology.

For most of the past 12,000 years, Earth’s climate was relatively stable and the biosphere was resilient and healthy. Geologists call this period the Holocene. More recently, we have moved into what many are calling the Anthropocene, a far less predictable era of human-induced environmental change.

This fundamental shift necessitates a new economic model. No longer can we assume – as prevailing economic thinking has – that resources are endless. We may have once been a small society on a big planet. Today, we are a big society on a small planet.

Read more at https://www.project-syndicate.org/commentary/sustainable-development-future-generations-by-johan-rockstr-m-2015-09#jxJCG5Y1RGemoPRF.99

 

Special Thread: The Camp of the Saints

Special Thread: The Camp of the Saints

The Camp of the Saints is a novel about population migration and its consequences. In Calcutta India, the Belgian government announces a policy in which Indian babies will be adopted and raised in Belgium. The policy is reversed after the Belgian consulate is inundated with poverty-stricken parents eager to give up their infant children.

An Indian “wise man” then rallies the masses to make a mass exodus to live in Europe. Most of the story centers on the French Riviera, where almost no one remains except for the military and a few civilians, including a retired professor who has been watching the huge fleet of run-down freighters approaching the French coast.

The story alternates between the French reaction to the mass immigration and the attitude of the immigrants. They have no desire to assimilate into French culture but want the goods that are in short supply in their native India. Although the novel focuses on France, the rest of the West shares its fate.

Near the end of the story the mayor of New York City is made to share Gracie Mansion with three families from Harlem, the Queen of the United Kingdom must agree to have her son marry a Pakistani woman, and only one drunken Soviet soldier stands in the way of thousands of Chinese people as they swarm into Siberia. The one holdout until the end of the novel is Switzerland, but by then international pressure isolating it as a rogue state for not opening its borders forces it to capitulate.

 The novel was published 42 years ago but it is suddenly back in the news again, ‘Camp of The Saints’ Seen Mirrored In Pope’s Message.

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

 

 

Tackle Climate Change Now or Risk 720 Million People Sliding Back Into Extreme Poverty Report Warns

An astonishing 720 million people around the world face falling back into extreme poverty unless we tackle climate change immediately, warns a new report by the Overseas Development Institute (ODI).

The report was published as world leaders gathered this week at the United Nations General Assembly and agreed the Sustainable Development Goals(SDGs), among which is the eradication of extreme poverty by 2030.

This goal is achievable, according to the ODI, but not without a greenhouse gas (GHG) emissions peak in 2030, and a fall to near zero by 2100. “Climate change increases the probability that those who emerge from extreme poverty will be at risk of falling back into it,” it concludes.

Beyond 2030

Sustaining poverty reduction therefore relies on curbing climate change the report argues.“If the global community is serious about eradicating extreme poverty for good, it needs to think beyond 2030. Eradicating poverty by 2030 will be no great accomplishment if we are incapable of sustaining that achievement from 2030 onwards.”

It continues: “It is policy incoherent for big GHG emitting countries, especially industrialised ones, to support poverty eradication as a development priority, whether through domestic policy or international assistance, while failing to shift their own economy toward a zero net emissions pathway.”

As the report notes, progress on poverty eradication over the past two decades has reduced the percentage of people living on less than $1.25 a day in the developing world – defined as the extreme poor – from 43 percent in 1990 to about 17 percent as of 2011.


“In order to stop poverty, we must stop climate change.” – Jay Winter Nightwolf, Echota Cherokee nation.


Analysing data on the impact of climate change on food prices, the effects of childhood malnutrition and stunting, the productivity of primary sectors (such as agriculture or mining), and increased droughts, the ODI estimates that up to 720 million people are at risk of facing extreme poverty from 2030 to 2050 under a business-as-usual scenario.

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

 

Land Degradation Could Create 50 Million Climate Refugees Within a Decade

Land Degradation Could Create 50 Million Climate Refugees Within a Decade

  Anti-desertification sand fences in Morocco. (Anderson Sady / CC BY-SA 3.0)

Fifty million refugees fleeing hunger and poverty could be created in the next decade unless the world’s land degradation crisis is addressed, according to a new U.N.-backed study.

The report, titled “The Value of Land,” estimates that between $6.3 trillion and $10.6 trillion worth of resources—including agricultural products, soil quality and benefits in tackling climate change—are lost each year due to land degradation. This is equivalent to between 10 and 17 percent of global annual GDP.

From the International Business Times:

“Our lands are no longer able to keep up with the pressures placed on its limited resources. Increasing misuse and demands for its goods are resulting in rapidly intensifying desertification and land degradation globally—an issue of growing importance for all people and at all scales,” the report said.

Globally, 2.6 billion people depend directly on agriculture. According to the report, soil degradation—exacerbated by deforestation and pollution—drought and desertification affect approximately 52 percent of arable land. Over the next 25 years, this might reduce global food production by up to 12 percent, raising global food prices by as much as 30 percent.

However, the authors added, “the economics of land degradation is about a lot more than agriculture.”

Desertification also threatens water availability and quality—a phenomenon that is believed to have played a key role in pushing Syria toward a brutal, protracted civil war that has cost nearly 300,000 lives. According to a previous study, published in the Proceedings of the National Academy of Sciences, an unprecedented drought in Syria between 2007 and 2010 triggered an exodus of nearly 1.5 million farmers to cities in search of food and work—a “contributing factor” that eventually led to the civil war.

Additionally, desertification also jeopardizes global biodiversity. Some estimates suggest that our planet might currently be losing approximately 27,000 species every year, a number that is likely to escalate with increase in the rate of desertification.

 

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

Does Capitalism Cause Poverty?

Does Capitalism Cause Poverty?

Capitalism gets blamed for many things nowadays: poverty, inequality, unemployment, even global warming. As Pope Francis said in a recent speech in Bolivia: “This system is by now intolerable: farm workers find it intolerable, laborers find it intolerable, communities find it intolerable, peoples find it intolerable. The earth itself – our sister, Mother Earth, as Saint Francis would say – also finds it intolerable.”

But are the problems that upset Francis the consequence of what he called “unbridled capitalism”? Or are they instead caused by capitalism’s surprising failure to do what was expected of it? Should an agenda to advance social justice be based on bridling capitalism or on eliminating the barriers that thwart its expansion?

The answer in Latin America, Africa, the Middle East, and Asia is obviously the latter. To see this, it is useful to recall how Karl Marx imagined the future.

For Marx, the historic role of capitalism was to reorganize production. Gone would be the family farms, artisan yards, and the “nation of shopkeepers,” as Napoleon is alleged to have scornfully referred to Britain. All these petty bourgeois activities would be plowed over by the equivalent of today’s Zara, Toyota, Airbus, or Walmart.

As a result, the means of production would no longer be owned by those doing the work, as on the family farm or in the craftsman’s workshop, but by “capital.” Workers would possess only their own labor, which they would be forced to exchange for a miserable wage. Nonetheless, they would be more fortunate than the “reserve army of the unemployed” – a pool of idle labor large enough to make others fear losing their job, but small enough not to waste the surplus value that could be extracted by making them work.

Read more at http://www.project-syndicate.org/commentary/does-capitalism-cause-poverty-by-ricardo-hausmann-2015-08#ZHmOTir0drCVm34s.99

 

46 million Americans go to food banks, and long lines for dwindling food supplies begin at 6:30 AM

46 million Americans go to food banks, and long lines for dwindling food supplies begin at 6:30 AM

Children Orphans Eating - Public DomainThose that run food banks all over America say that demand for their services just continues to explode.  It always amazes me that there are still people out there that insist that an “economic collapse” is not happening.  From their air-conditioned homes in their cushy suburban neighborhoods they mock the idea that the U.S. economy is crumbling.  But if they would just go down and visit the local food banks in their areas, they would see how much people are hurting.  According to Feeding America spokesman Ross Fraser, 46 million Americans got food from a food bank at least one time during 2014.  Because the demand has become so overwhelming, some food banks are cutting back on the number of days they operate and the amount of food that is given to each family.  As you will see below, many impoverished Americans are lining up at food banks as early as 6:30 in the morning just so that they can be sure to get something before the food runs out.  And yet there are still many people out there that have the audacity to say that everything is just fine in America.  Shame on them for ignoring the pain of millions upon millions of their fellow citizens.

Poverty in America is getting worse, not better.  And no amount of spin from Barack Obama or his apologists can change that fact.

This year, it is being projected that food banks in the United States will give away an all-time record 4 billion pounds of food.

Over the past decade, that number has more than doubled.

And that number would be even higher if food banks had more food to give away.  The demand has become so crushing that some food banks have actually reduced the amount of food each family gets

Food banks across the country are seeing a rising demand for free groceries despite the growing economy, leading some charities to reduce the amount of food they offer each family.

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

 

 

Post-Development Discourse: Lessons for the Degrowth Movement (Part 1)

Is degrowth only conceivable in the context of “oversaturated” industrial societies while the global “South” remains dependent on growth? In two installments, this article questions such assumptions. In this first part it introduces positions critical of development which refuse to adopt the Western model of prosperity; the second part will focus on the analysis of these positions with a view to their relevance for the European degrowth movement and the growth debate here.

A common objection against visions of degrowth is raised with regard to the material needs of large parts of the global population – those who live in so-called “developing” or “underdeveloped” countries under conditions of extreme poverty. This group, so the argument goes, essentially depends on growth in order to improve their living conditions.

Interestingly, this argument is often brought forward in order to justify further growth in the global “North,” i.e., growth which in the first instance would benefit much more privileged groups. This line of argument has been easily refuted by the degrowth movement which emphasizes that in view of increasingly scarce natural resources, further material growth in richer industrial countries would rather diminish the prospects for development in poorer regions. The claim that wealth generated in the “North” would somehow “trickle down” to the “South” – the traditional argument of radical free-market theorists extrapolated to the global level – has been too thoroughly discredited over decades of empirical evidence to deserve further attention here.

But even explicit critics of growth, in pursuit of the laudable goal of global justice, often argue that economic development requires further growth in the “South.” Indeed, their demand for an end to growth in OECD countries is often motivated by the desire to enable “sustainable development” in poorer regions. From the perspective of post-development theory, however, the assumptions underlying such demands are quickly revealed to be rooted firmly in Western ideas of progress and growth.

 

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

12 Ways The Economy Is Already In Worse Shape Than It Was During The Depths Of The Last Recession

12 Ways The Economy Is Already In Worse Shape Than It Was During The Depths Of The Last Recession

Twelve - Public DomainDid you know that the percentage of children in the United States that are living in poverty is actually significantly higher than it was back in 2008?  When I write about an “economic collapse”, most people think of a collapse of the financial markets.  And without a doubt, one is coming very shortly, but let us not neglect the long-term economic collapse that is already happening all around us.  In this article, I am going to share with you a bunch of charts and statistics that show that economic conditions are already substantially worse than they were during the last financial crisis in a whole bunch of different ways.  Unfortunately, in our 48 hour news cycle world, a slow and steady decline does not produce many “sexy headlines”.  Those of us that are news junkies (myself included) are always looking for things that will shock us.  But if you stand back and take a broader view of things, what has been happening to the U.S. economy truly is quite shocking.  The following are 12 ways that the U.S. economy is already in worse shape than it was during the depths of the last recession…

#1 Back in 2008, 18 percent of all Americans kids were living in poverty.  This week, we learned that number has now risen to 22 percent

There are nearly three million more children living in poverty today than during the recession, shocking new figures have revealed.

Nearly a quarter of youngsters in the US (22 percent) or around 16.1 million individuals, were classed as living below the poverty line in 2013.

This has soared from just 18 percent in 2008 – during the height of the economic crisis, the Casey Foundation’s 2015 Kids Count Data Book reported.

#2 In early 2008, the homeownership rate in the U.S. was hovering around 68 percent.  Today, it has plunged below 64 percent.  Incredibly, it has not been this low in more than 20 years.  Just look at this chart – the homeownership rate has continued to plummet throughout Obama’s “economic recovery”…

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

 

 

Burning down the house

 

Burning down the house

Today is World Population Day (July 11)

Picture the street where you live. Now imagine that a building in your neighborhood bursts into flame and burns to the ground. Day after day, the calamity is repeated.

With safety and livelihoods at risk, people begin to argue about the best way to counter the threat. Some say that the fire department budget should be increased to support more trucks and firefighters. Others say that infrastructure is the problem to fix, that building codes should mandate construction with nonflammable materials.

No one bothers to ask, “What is causing the fires? Is there a gas leak or an arsonist on the loose?”

If this were the public response to a crisis in your neighborhood, you’d call it dangerous. It would be laughable to simply fight the fires without seeking and addressing their cause.

And yet even that superficial level of conversation is deeper than the typical response to the ecological and social conflagration engulfing the Earth — the great unraveling of nature and the unprecedented number of people living in crushing poverty.

Mostly, we just don’t talk about it, let alone ask, “What is causing the fire? The answer is too uncomfortable. Unintentionally, but in effect, humanity has become a planetary arsonist, burning down the houses (habitat) of our neighbors in the community of life. Our numbers and behavior are transforming the Earth, causing unnecessary suffering for people and for the other creatures with which we share the planet.

It’s time to talk about the size of the human family and the way we organize our economic activity (and not just today, on World Population Day), in language that is both honest and non-accusatory. It’s time to move beyond old arguments about whether population size or overconsumption is most culpable (both matter) and work urgently to expand rights, opportunity, and health for people in high fertility countries.

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

 

Food Security: a Hostage to Wall Street

Food Security: a Hostage to Wall Street

Imperialism and the Control of Agriculture
In October of last year, World Food Day celebrated ‘Family Farming: Feeding the world, caring for the earth’. According to the UN Food and Agriculture Organization’s website, the family farming theme was chosen to raise the profile of family farming and smallholder farmers. The aim was to focus world attention on the significant role of family farming in eradicating hunger and poverty, providing food security and nutrition, improving livelihoods, managing natural resources, protecting the environment, and achieving sustainable development, especially in rural areas.

Family farming should indeed be celebrated because it really does feed the world. This claim is supported by a 2014 report by GRAIN, which revealed that small farms produce most of the world’s food.

Around 56% of Russia ‘s agricultural output comes from family farms which occupy less than 9% of arable land. These farms produce 90% of the country’s potatoes, 83% of its vegetables, 55% of its of milk, 39% of its meat and 22% of its cereals (Russian Federation Federal State Statistics Services figures for 2011).

In Brazil, 84% of farms are small and control 24% of the land, yet they produce: 87% of cassava, 69% of beans, 67% of goat milk, 59% of pork, 58% of cow milk, 50% of chickens, 46% of maize, 38% of coffee, 33.8% of rice and 30% of cattle.

In Cuba, with 27% of the land, small farmers produce: 98% of fruits, 95% of beans, 80% of maize, 75% of pork, 65% of vegetables, 55% of cow milk, 55% of cattle and 35% of rice (Braulio Machin et al, ANAP-Via Campesina, “Revolucion agroecologica, resumen ejectivo”).

In Ukraine, small farmers operate 16% of agricultural land, but provide 55% of agricultural output, including: 97% of potatoes, 97% of honey, 88% of vegetables, 83% of fruits and berries and 80% of milk (State Statistics Service of Ukraine. “Main agricultural characteristics of households in rural areas in 2011″).

 

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

Pope Francis’ Encyclical Is A Sincere Call For Climate Action, Economic Justice

Pope Francis has released his long awaited encyclical, or teaching document, on climate justice and the environment, and it flies in the face of everything climate deniers stand for.

The encyclical is officially called “Laudato Si (Be Praised), On the Care of Our Common Home,” and it makes a compelling case for humanity’s moral responsibility to “protect our common home” by tackling the root causes of two of the greatest interlinked global crises of our time: climate change and poverty.

[T]he earth herself, burdened and laid waste, is among the most abandoned and maltreated of our poor,” Pope Francis writes. Echoing his earlier critique of capitalism and inequality, the Pope links the pollution and waste degrading our environment directly to our “throwaway culture” that, unlike nature, does not seek to reuse and recycle every resource as a valuable constituent of the circle of life.

“We have not yet managed to adopt a circular model of production capable of preserving resources for present and future generations,” the Pope writes. He faults this mode of consumption for creating global warming, and concludes: “Humanity is called to recognize the need for changes of lifestyle, production and consumption, in order to combat this warming or at least the human causes which produce or aggravate it.”

The Pope unequivocally embraces the science showing mankind is responsible for global warming:

“A number of scientific studies indicate that most global warming in recent decades is due to the great concentration of greenhouse gases (carbon dioxide, methane, nitrogen oxides and others) released mainly as a result of human activity.”

He specifically calls for policies to change the way we power human society:

…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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