Monday , December 16 2019
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Peter Schiff: The Fed Is Not Done Cutting Until It Gets to Zero

2 hours ago

Peter Schiff recently appeared on Kitco news with Daniela Cambone to talk politics, the economy and the Fed. He said that no matter what Jerome Powell is saying, the Fed central bank isn’t finished with rate cuts. [embedded content]Lisa started out the interview asking Peter what he thought about the impeachment hearings and Trump’s prospects for reelection. Peter said it certainly looks like the House will impeach Trump. He doesn’t think it’s likely the Senate will remove him from office, but he also doesn’t think the president will be reelected in 2020 unless the economy can hold together.I thought it was far more likely that he was elected originally, but I don’t think his prospects are as great now as they were then, although the conventional wisdom is the opposite. Most people

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Fun on Friday: The Tacky Jesus Phone

3 days ago

Remember a few weeks ago, I told you about earbuds that are covered in 18-karat gold? Well, I’ve found just the thing to plug them into.  And it would also make a great Christmas gift. Or something. It’s the gold-and-diamond encrusted “Jesus phone.”No. I’m not making this up. Honestly, I kind of wish that I was.But no, this is a real thing.The phone is offered by Caviar Royal Gift and you can get one for just $129, 770.The Christmas-themed iPhone 11 is covered in 18-karat gold. It features a bas-relief with the scene of Jesus Christ’s birth. In the center of the phone, there is a shining 3-carat diamond symbolizing the Star of Bethlehem guiding the Magi to Christ’s birthplace. The Caviar website calls it “an expression of special respect to this holy day.”Or maybe it’s ostentatious

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Color Me Skeptical: SchiffGold Friday Gold Wrap Dec. 13, 2019

3 days ago

We have a trade deal! Maybe. Meanwhile, the Fed wrapped up its last FOMC meeting of the year this week and did nothing. But Powell and Company did give us some indication about what we should expect next year. The week’s news played tug-o-war with gold. In this episode of the Friday Gold Wrap, host Mike Maharrey breaks it all down and says there’s a lot to be skeptical about, both with the trade deal and the rhetoric coming out of the Fed.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.Tune in to the Friday Gold Wrap each week for a recap of the week’s economic and political news as it relates to gold and silver, along with some insightful

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Peter Schiff: Powell Said A Lot of Foolish Things Today

4 days ago

The Federal Reserve held rates steady during the final FOMC meeting of the year, but the messaging turned out to be more dovish than markets anticipated, with the Fed signaling it will not raise rates at all in 2020. Stocks and gold both moved up on the news.Peter Schiff appeared on Fox Business’ Claman Countdown along with National Alliance Security’s Andy Brenner and former Dallas Fed chief economist Michael Cox to talk about the Federal Reserve. Peter said Fed Chair Jerome Powell said “a lot of foolish things” during the post-meeting press conference.[embedded content]Brenner kicked off the segment saying that uncertainty about a trade deal is the biggest factor, particularly in pushing bond yields lower.Cox said the reason we don’t have inflation is because we live in the “knowledge

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The Fed “Out-Doves” Expectations While Doing Nothing

4 days ago

The Federal Reserve wrapped up its final Federal Open Market Committee meeting of 2019 on Wednesday doing pretty much what was expected — nothing. But in the processing of doing nothing, the central bank said a lot and managed to out-dove expectations.After cutting interest rates three times in 2019, the FOMC stood pat during its final meeting of the year, holding the interest rate steady at 1.5%.Despite the lack of action, the signals coming out of the Fed were pretty dovish. The so-called “dot-plot” that projects policy over the next three years anticipates no rate hikes 0r cuts in 2020 and just one increase of 25 basis points in 2021.Jerome Powell also reiterated that it would take “a meaningful and persistent rise in inflation” before the central bank moved to push rates up.  This

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The Wealthy Are Hoarding Physical Gold

5 days ago

The world’s rich are hoarding gold – this according to data buried in a recent Goldman Sachs note to clients.In the note published over the weekend, Goldman recommended diversifying long-term bond holdings with gold, citing “fear-driven demand” for the yellow metal.Hedge funds and other large speculators boosted their bullish bets on gold by 8.9% through the week ended Dec. 3, according to government data released last Friday. That represents the biggest gain since the end of September.The Goldman note cited political uncertainty and recession fears as the catalyst for the move toward gold. It also mentioned worries about a wealth tax, increasing interest in Modern Monetary Theory (essentially money-printing) and the current loose central bank monetary policy.Data buried in the note

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New Debt Record; Americans Propping Up the Economy With Money They Don’t Have

5 days ago

American consumers are still propping up the economy spending money they don’t have. But how long can it last?After a slowdown last month, consumer borrowing jumped again and set another new record in October, according to the latest data released by the Federal Reserve.Consumer debt grew by $18.9 billion in October. That represents an annual growth rate of 5.5%. Total consumer debt outstanding now stands at a record $4.165 trillion. (Seasonally adjusted)The Federal Reserve consumer debt figures include credit card debt, student loans and auto loans, but do not factor in mortgage debt.After falling in August and holding steady in September, revolving credit – primarily credit card debt – increased by $7.9 billion in October, an 8.8% increase. Americans now owe $1.09 trillion on their

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Quantitative Easing By Any Other Name…

6 days ago

Stocks have pushed to record highs in recent weeks. If you read the headlines, you’d think it was all about optimism for a trade deal. Or maybe just some general bullishness on the US economy. But Peter Schiff has said that’s not the real reason stocks have continued to climb. In fact, there are a  lot of things that should be causing them to go down, but only one thing causing them to go up — the Federal Reserve.For a while, people were worried about rate hikes. Nobody is worried about rate hikes. The Fed has taken all rate hikes off the table. The Fed has made it clear that the only direction rates can go is down. They’re either going to stay the same, or they’re going to go down. And QE4 is now on autopilot into perpetuity. So, that’s what the markets want. They know they’re never

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Central Banks Keep Right on Buying Gold

6 days ago

Globally, central bank gold reserves charted another healthy gain in October as they continue their quest to diversify reserves away from the US dollar.Central banks added another net 41.8 tons of gold to their reserves in October, according to the latest data from the World Gold Council.The World Gold Council bases its data on information submitted to the International Monetary Fund.Turkey led the pack for the second straight month, purchasing 12.8 tons of gold. The Turks have leapfrogged the Russians as the number-one gold-buyer in 2019 with 144.8 tons added to their reserves so far this year.Russia added 10.2 tons of gold to its hoard in October. That brings its total gold purchases to 139 tons so far in 2019. Russia’s quest for gold has paid off in a big way. The Russian Central

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Peter Schiff: A Trumped Up Jobs Report

7 days ago

Friday’s employment report from the Labor Department far exceeded expectations. Mainstream analysists called the report “stellar.” Some pundits even called it the best jobs report in history. According to the Labor Department, the US economy added 266,000 jobs in November. Economists had projected an increase of around 187,000. The unemployment figure dropped to 3.5%.Peter Schiff talked about it in his latest podcast. He called it a “Trumped-up” jobs report.[embedded content]Pundits keep saying the unemployment rate is at a 50-year low. Peter explained that this is not true. Fifty years ago, the methodology for calculating unemployment was much different than it is today.If we had to calculate unemployment using the same statistical measure that they were using 50 years ago, the

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Top Slovak Party Leader Wants the Country to Bring Its Gold Home

7 days ago

A top Slovak political party official said his country should bring its gold home because even its allies cannot be trusted with it.Ex-Premier Robert Fico chairs the biggest party in Slovakia. Last week, he called for a special parliamentary session on the country’s gold. He said the country’s gold reserves are not safe in England because of Brexit and the possibility of a global economic crisis.Fico said you can hardly trust even your closest allies after the Munich Agreement, referring to the 1938 pact that allowed Hitler to annex part of Czechoslovakia. I guarantee that if something happens, we won’t see a single gram of this gold. Let’s do it as quickly as possible.”The National Bank of Slovakia holds 31.7 tons of gold valued at around $1.4 billion.Slovakia could follow the lead of

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Inflation? What Inflation? Friday Gold Wrap Dec. 6, 2019

10 days ago

We’ve seen new records in the stock market in recent weeks. The headlines tell us it’s all because of a potential trade deal, but Friday Gold Wrap host Mike Maharrey doesn’t buy it. He says it’s really all about Fed money printing. That may juice the stock market, but there’s a downside – inflation. In this episode of the podcast, Mike talks about it along with the week’s gold news.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.Tune in to the Friday Gold Wrap each week for a recap of the week’s economic and political news as it relates to gold and silver, along with some insightful commentary.LISTEN[embedded content]You Can Also Listen on

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The Lurking Inflation Monster

11 days ago

Where’s the inflation?The Federal Reserve printed money for nearly a decade, and yet, inflation – as measured by the government – has been “muted.”What gives?There are a number of explanations. For one thing, as economist Edward Stringham pointed out in a recent Interview with Mike Maharrey, the Fed has incentivized banks to hold cash. As a result, a lot of the newly minted dollars never made it into the broader economy.But the truth of the matter is, there been increasing inflation. As Harris Kupperman pointed out in a recent article on , there has actually been dramatic inflation over the last decade. It’s just hasn’t shown up in the core consumer goods that the government uses as its inflation measuring stick.When a country prints money, no one knows where within the economic

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Gold Set to Join the “All-Time Highs Club” — Bloomberg Intelligence

11 days ago

Gold is poised to join the “all-time-highs” club in the upcoming decade.No, this isn’t the musing of some gold-bug. It’s analysis from a pretty mainstream source — Bloomberg Intelligence.Stocks have set new records over the last several weeks and the dollar hit 2-year highs this fall. But writing in the commodity outlook, Bloomberg Intelligence senior commodities strategist Mike McGlone made the obvious point that stocks and the dollar can’t go up forever. When the tide turns, the reversal could boost gold to all-time highs.It’s a new year and decade and gold is poised to follow the dollar and equities to new highs, in our view. When, should be the primary question, particularly when the stock market and greenback succumb to some normal mean reversion.”McGlone noted that gold has been

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Peter Schiff: Will the Grinch Steal Wall Street’s Santa Claus Rally?

12 days ago

The Dow Jones was down over 280 points yesterday, marking the third straight day of declines. Sudden pessimism about a trade deal has tanked stocks. In his latest podcast, Peter Schiff talked about it.Typically, December is a strong month for stocks with the so-called “Santa Claus rally.” Peter said maybe the Grinch is going to steal that rally this year.[embedded content]Peter noted that one of the reasons the stock market is up so much in 2019 is because last December was the worst December since the Great Recession.Now, I don’t know if this December can take out that one. But, hey, it’s possible, given that there’s no reason for the stock market to up where it is. The only reason the stock market has gone up, I think, is because of the Fed.”Peter said all of the teasing about a trade

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Peter Schiff: This House of Cards Will Come Crashing Down on Consumers

12 days ago

Stocks closed out November on a high note with the hope of a trade deal fueling Wall Street. But is this warranted? And are consumers really doing a well as the mainstream would have us believe? Peter Schiff appeared on last week to talk about it. He said it’s all a house of cards and it’s going to come crashing down on American consumers.Peter started out the interview talking about Hong Kong. The territory became a focal point in trade talks between the US and China after President Trump signed the Hong Kong Human Rights and Democracy Act supporting pro-democracy protestors. Peter said US criticism is a bit hypocritical.If you look at the index of economic freedom that the Heritage Foundation puts out every year, Hong Kong ranks number one. Today, it’s the freest economy in the

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Do We Even Need the Fed? It’s Your Dime Interview With Economist Edward Stringham

13 days ago

Do we even need the Federal Reserve?Whether on the political left, right, or in the middle, virtually everybody thinks we do. After all, without the Fed, we’ll have wild economic swings and crashes.Economist Edward Stringham disagrees. In this It’s Your Dime Interview, he talks about it with host Mike Maharrey and makes the case that the economy would function just fine without a central bank pulling strings. In fact, as he explains, the Fed actually stirs up economic chaos.In this interview, Mike and Edward talk about how the Fed messes up our money, the Fed-induced business cycle, and the economic impact of the current easy-money policy. We also talk about the idea of private governance. Is that even possible?WATCH[embedded content]Edward Stringham is Davis Professor of Economic

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The Skyscrapers Are Warning Us!

13 days ago

Did you now skyscrapers can predict economic crashes?And the skyscraper index is flashing red.As economist Mark Thronton explained in his book, , the so-called Skyscraper Index has a remarkably accurate record signaling economic downturns dating back to the late 19th century.Thornton explained the Skyscraper Index in detail during a SchiffGold It’s Your Dime Interview.In an article published at LewRockwell.com, Thornton makes the case that the index is signaling the next big downturn.Zero Hedge reports “China’s Skyscraper Boom Comes Crashing Down Amid Developer Default,” noting reports that construction work was recently halted on the nation’s potentially tallest skyscraper, after the developer defaulted on a payment to the construction company.They then invoked the Skyscraper Index

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Updated and Revised Report: The Student Loan Bubble – Gambling With Your Future

14 days ago

Have you heard? The Democrats are going to fix the student loan mess! They’ve brought up the issue in almost every  Democratic Party presidential debate. All we need is a good government program and we can easily solve this $1.64 trillion problem.Never mind that government programs caused the problem in the first place.Just how big is the problem? And how did we get here? And most importantly, why should you care? You can get all of the details in SchiffGold’s fully updated report “The Student Loan Bubble: Gambling with America’s Future.“The student loan bubble continues to inflate. Student loan balances jumped by $32.9 billion in the third quarter this year, pushing total outstanding student loan debt to a new record. Student loan balances have grown by 5.1% year-on-year.Over the last

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WeWork IPO Disaster Reveals the Danger of the Fed’s Easy Money Policy

14 days ago

On several podcast episodes, Peter Schiff has talked about the warning signs we’re seeing on Wall Street through the struggles of so-called unicorn companies.Unicorns are privately held companies valued over $1 billion. Companies like Lyft, Chewie, Uber and WeWork were the darlings of WallStreet. Their IPOs were much-anticipated by investors. They are also the poster children for easy-money induced market mania, and their IPOs were crucial for maintaining the bubble.In particular, the demise of WeWork’s much-anticipated IPO provides a good object lesson revealing the problems of the Federal Reserve’s easy-money policy.Markets seemed to really wake up to the plight of the unicorn when WeWork aborted its IPO, but the air started coming out of the unicorn bubble long before WeWork’s IPO

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Fun on (Black) Friday: Be Careful Out There!

17 days ago

So, did you go Black Friday shopping this morning?I didn’t. In fact, I have never gotten up to join the Black Friday hordes. There isn’t a Walmart deal that can entice me to go shopping at 5 a.m. I like to sleep more than I like saving a few bucks. Not only that, I worked at Toys R Us in my younger days and once had to break up a fist-fight over a Power Ranger on Black Friday. It’s scary out there. You need to be careful.But a lot of people do the Black Friday thing. In fact, I know people who make it an annual tradition complete with a pre-shopping-frenzy meal at some ungodly hour like 3 a.m. If this is you, more power to you. You do you. I’m going to take a hard pass.My Black Friday tradition is to stay in my house as far away as possible from the mall and the mass of angry shoppers.

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Delicious Irony from the Fed: SchiffGold Friday Gold Wrap Nov. 29, 2019

17 days ago

Stock markets hit new highs again this week. If you believe the headlines, the bullishness on Wall Street is mostly a function of trade deal optimism. But there’s another factor driving stocks higher – easy money courtesy of Federal Reserve (not) quantitative easing. In this episode of the Friday Gold Wrap, host Mike Maharrey talks about the impact QE4 is having on the markets and some delicious irony courtesy of a paper published by the central bank that admits its own policy might just be a problem.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.Tune in to the Friday Gold Wrap each week for a recap of the week’s economic and political news as it relates

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Peter Schiff: If They Were Smart, They Wouldn’t Be in the Stock Market

19 days ago

Peter Schiff hit a number of subjects in his most recent podcast, including bitcoin, the stock market, wealth inequality, the Fed and the voting age. He also said we should be thankful for capitalism.[embedded content]Stock markets hit record highs again this week. Some of it was due to more optimism about a trade deal. Peter said he underestimated the impact of QE4 on the markets.I mean, I knew QE4 was coming. I was 100% sure of that. I knew the Fed was going to cut rates, and they’ve been doing that. I just kind of underestimated how much upward pressure it was going to put on the US stock market. I actually thought that the dollar would be falling as a result of the Fed surprising everybody by doing exactly what I expected, which was cutting rates and going back to QE. Well, they did

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Recession Early Warning? Spending By the Wealthy Is Slowing

20 days ago

America’s economy is built on consumption. Average Americans have been pushing the US economy along, spending money they don’t have. But as we’ve reported, there are signals that the credit cards might be close to maxed out. Now there appears to be another warning sign – the wealthy are reining in their spending.In August, Spencer Schiff wrote an article noting the importance of consumer spending to the US economy and the consequences that will follow if Americans suddenly tighten up their wallets. The mainstream has also taken notice. During a CNBC interview, economist Jim O’Neill said the US economy is becoming “riskily dependent” on the “overleveraged consumer.”The economy’s strength … depends so much on consumption, which is fine unless financial conditions tighten unexpectedly when

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Poland Brings Gold Home; Calls It a Symbol of Strength

20 days ago

Poland has repatriated 100 tons of gold from England. National Bank of Poland Governor Adam Glapiński announced the yellow metal’s return home on Monday.“The gold symbolizes the strength of the country,” Glapiński told reporters.He noted that the country could generate multi-million dollar profits if it sold its gold reserves, although there are no plans to do so.Glapiński said the Polish central bank will continue to bring its precious metal home if the “reserve situation is favorable.”Poland has also been aggressively increasing its gold reserves. The National Bank of Poland added 100 tons of the yellow metal to its hoard through the first half of 2019. In a statement announcing the plans earlier this year, Glapiński said he was “proud” of the moves.We managed to increase the

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Is the Auto Loan Bubble Nearing Its Popping Point?

21 days ago

How much more can the auto loan bubble blow up before it pops?Total auto loans and leases outstanding for new and used vehicles increased by another 4.3% year-on-year in the third quarter, according to the latest data from the Federal Reserve. This was a factor in pushing total American consumer debt to a new record of $4.15 trillion in September.Meanwhile, auto loan delinquencies are surging.Vehicle loans and leases outstanding have soared to a record of $1.19 trillion. Since Q3 2009, auto loan balances have grown by 62%. That compares to a 19% increase in CPI with a population growth of 8%. In other words, the overall burden of auto loans has increased in real terms.Over the last decade,  auto-loan balances have ticked up from 5.1% of GDP in 2009 to 5.6% of GDP today.Digging deeper

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Who Produces the World’s Gold?

21 days ago

Which countries produce most of the world’s gold?Gold mine output has flatlined over the last several years and that trend appears to be continuing in 2019. Gold production rose fractionally in 2018 by about 1% totaling 3,346.9 tons. That compared with 3,318.92 tons mined in 2017  — a modest 28-ton increase year-on-year. According to the World Gold Council’s Gold Demand Trends Q3 report, on a year-to-date basis, mine production ended the third quarter at 2,583 tons. That’s virtually identical to production levels at this point in 2018.Looking at general the trend, we see signs of plateauing mine output over the last four years. According to the WGC, production was up 77.72 tons between 2015 and 2016, 33.92 tons between 2016 and 2017, and 28 tons between 2017 and 2018 and we’re on pace

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Fun on Friday: What Ever Happened to that Stolen Toilet?

24 days ago

Remember a couple of months ago when I told you about the stolen toilet? Well, they still haven’t found it.For those of you who missed that one, you’re probably wondering why on earth anybody would steal a toilet. Well, it was made out of gold. Eighteen-karat gold to be precise. The golden potty was valued at about $6 million. Theives stole it from the Blenheim Palace in England.Like I said, the toilet is still MIA and this raises some questions. Namely, what do you do with a stolen $6 million commode? I mean, it’s not like you can walk into Joe’s Pawn and Swap and get a few bucks for it. I’m pretty sure a gold potty would raise some eyebrows and most likely the curiosity of the local po-po. So, what did our intrepid thieves do with their booty? (Get it? Booty? There’s a subtle joke

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A Silver Lining: SchiffGold Friday Gold Wrap Nov. 22

24 days ago

It’s been a pretty dreary week on Wall Street with another round of trade war pessimism. Otherwise, there hasn’t been a lot of economic news to roil markets and precious metals have remained pretty much rangebound. But host Mike Maharrey has a silver lining for you on this episode of the Friday Gold Wrap podcast, along with a little Fed analysis.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.Tune in to the Friday Gold Wrap each week for a recap of the week’s economic and political news as it relates to gold and silver, along with some insightful commentary.LISTEN[embedded content]You Can Also Listen on SoundCloud[embedded content]SHOW NOTESThis Is Silver

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Market Review: Improving Investor Sentiment Will Drive Silver Prices Higher

25 days ago

Improving investor sentiment will drive silver prices higher.This was the conclusion drawn from the Metals Focus/Silver Institute Interim Silver Market Review. Metals Focus director Philip Newman presented the data during the Annual Silver Industry Dinner hosted by the Silver Institute. His presentation featured historical supply and demand statistics and provisional estimates for 2019.According to the report, even with the recent modest pull-back in the silver price, the last few months have seen a major improvement in investor sentiment toward silver. The white metal rallied to a three-year high of $19.65 in early September. This was accompanied by a decline in the silver/gold ratio to a one-year low.Silver has given up some of those gains in recent months, along with gold, primarily

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