The Dirty Truth the Commercial Investment Industry Doesn’t Want You to Know About HFTs

October 2nd, 2015
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For years, we’ve been stating that HFT algorithmic software is merely a criminal tool that allows bankers to fleece naive clients. Vanguard Group Founder John Bogle exposed this criminality earlier this year in a Time magazine interview:

“The job of finance is to provide capital to companies. We do it to the tune of $250 billion a year in IPOs and secondary offerings…What else do we do? We encourage investors to trade about $32 trillion a year. So the way I calculate it, 99% of what we do in this industry is people trading with one another, with a gain only to the middleman. It’s a waste of resources. It’s a lot of money, $32 trillion. Nearly double the entire U.S. economy moving from one pocket to another, with a toll-taker in the middle. Most people refer to them as stock brokers”.

I left a Wall Street firm more than a decade ago in disgust to start my own company due to excessive fleecing of clients, and this was before the widespread use of HFT algorithms. Back then there were the “old timers” that would excessively churn clients accounts to pocket fees, and in one weekly meeting, we were informed of one financial consultant in our office that churned a $35,000 account to generate more than $30,000 in fees as ridiculous as this sounded for back then. But today, thanks to HFT algos controlling nearly all trading, there are nearly no accounts at large global investment firms, even those with a managed fee structure that is not sheared for the sole purpose of generating fees and skimming money from clients. Remember, Jon Bogle revealed that bankers churn USD $32 trillion, nearly TWICE the amount of the entire US economy, is churned in US stock markets EVERY YEAR, with a gain ONLY to the middleman – the financial consultant, private wealth manager and ultimately the Commercial Investment Firm.

Today, Zero Hedge posted another scathing indictment of commercial bankers’ use of HFT algorithms as a criminal tool to perpetually steal money from all clients.

HFTs Have Devolved To Two-Bit Criminals Straight Out Of “Office Space”

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Booming Physical Gold & Silver Demand Still Won’t Significantly Boost Fake Paper Derivative Prices in the Immediate Term

October 2nd, 2015
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Despite the fact that there were record Q3 American Silver Eagle sales by the US mint, bankers have still been able to suppress spot and paper silver prices, creating enormous premiums of 34% for current year BU silver eagles and up to an astonishing 51% or more for BU silver eagles just a few years old (source:



The US mint is not the only global mint reporting record physical demand. The Perth Mint, as evident in the chart below, also reported exploding demand for gold and silver coins and bullion for this past September.


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The S&P 500 is Now Down -8.6% YTD. What’s Next?

September 29th, 2015
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Yesterday, US stock markets fell heavily, with the DJIA falling -1.92%, the S&P 500 falling -2.55% and tech stocks being the huge loser, with NASDAQ falling -3.04%. Yesterday, in this newsletter, we warned you to turn off the TV and put the Wall Street Journal, Forbes and Fortune down, as there is literally almost nothing but pure propaganda in mainstream publications today. Here is a sampling off propaganda being spouted in the mainstream media the past few weeks.

29septprop Read the rest of this entry »

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SKU_Vlog_009: Why It’s Such a Struggle to Make Ends Meet, Explained in 8 Minutes

September 28th, 2015
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In the past week, we’ve released a couple of vlogs on our SmartKnowledgeU YouTube channel that clearly illustrate the perpetual propaganda churned out by Central and Commercial Bankers all over the world. We’ve illustrated with facts how simple observation skills and basic logic can be used to overcome the false conclusions embraced by many of us that accept this propaganda. Today, Central and Commercial bankers continue to discuss ludicrous notions of near zero inflation and near full employment when neither economic state is even close to existence anywhere in the world, simply to deceive us into believing that our situations are much better than they truly are today. Many among us, unfortunately have embraced such ludicrous lies due to the repetitive nature of such lies being told hundreds of times. Unfortunately, the brute force of this repetition eventually convinces many of us to accept these lies, and our acceptance of such ludicrous lies only serves to confuse and befuddle us regarding the true reasons why, in every subsequent year since this global economic crisis manifested in 2008, we’ve been struggling more and more to make ends meet. In the below vlog, we again discuss, in a very easy-to-understand manner, the true reasons why economic struggles have multiplied for the common Joe and Jane, and why Central Bankers have tricked us into becoming the proverbial hamster that is running on the wheel to nowhere.


Based on the all Wall Street/ global Commercial banker narrative that all news is awesome news, even terrible news, it should not be long before the Mainstream Media reports that global heavy equipment giant Caterpillar’s announcement to lay off at least 10,000 workers and Deutsche Bank’s announcement to lay off 23,000 workers is awesome news and a definitive sign of just how strongly the global economy is performing right now! Just look at the below headlines to understand how desperate the banker propaganda is becoming.



skuvlog9click the above image to play the video

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Two Simple Ways to Immunize Yourself From Central Banker Propaganda & Lies

September 25th, 2015
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At the current time, Central and Commercial bankers are propagating a mountain of lies through their control of mass media distribution channels. In our next two vlogs, we will discuss narratives that show how easily some of us have been thoroughly brainwashed with banker propaganda. There are two simple ways to immunize ourselves from Central and Commercial Banker propaganda and lies. Simply apply common sense and observation of our own daily lives, and through the application of these basic methods, one can easily dispel many banker narratives as complete lies. A few hours ago, I posted a video of  a very sickly Janet Yellen making a speech at University of Massachusetts at Amherst, in which she stated if “economic growth continues to be strong enough to return the economy to full employment”and if she and her fellow Central Bankers succeed in “keeping inflation below [the Fed’s] goal [of 2%]” then she would consider raising the Fed Funds interest rate. If one cannot figure out on his or her own that these statements are deliberate and flat-out lies if one is living inside the United States, then one really needs to question one’s common sense. Read the rest of this entry »

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The Hype Surrounding Today’s Federal Reserve Interest Rate Decision is Way Overblown

September 17th, 2015
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Today the Federal Reserve will meet and announce at 2PM NY time whether or not they are hiking rates. The fact that there is so much mainstream media attention being placed on this announcement as one that could tank the US stock markets if they announce a rate hike versus cause it to soar if they announce further delays is absurd if one pauses for a rational second to consider the following. The US Federal Reserve cut interest rates to 0.00% to 0.25% on 16 December 2008, and it has been at this level for more than 6½ years now! Furthermore, starting in about the last quarter of 2009, the mainstream media has been speculating that the Feds would raise interest rates. This means that for 23 consecutive quarters, the mainstream media has speculated that the Feds would raise interest rates, and for 23 straight quarters, the Feds have issued a bunch of rambling nonsense about “subdued inflation trends” and low US unemployment imbedded within a non-wavering statement that they will maintain a fed funds rate at 0% to 0.25%. Just check out the consistency of the statements they have released every few months for the past 6½ consecutive years below (I have only posted their decision from one statement per year though all FOMC statements every year for the past 6½ years state the same basic nonsense.) Read the rest of this entry »

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You Must Plan for the Next Financial Crisis BEFORE it Happens, Not While it is Happening

September 11th, 2015
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On 23 April 2008, I stated in this article that an “imminent disaster [ ] await[ed] US stock markets”, and that “people seem[ed] to [have forgotten] one central and critical point. Most people seem to believe that they have to lose a great deal of money when crises materialize and forget that it is absolutely possible to prosper during crises as well. Thus, because they feel they must suffer during a crisis, the ‘shoot the messenger of bad news’ syndrome commences.” Many people laughed off my article back then, calling it idiotic, stating that they were happily “all in” and gladly would make tons of money in a rising US stock market while I stayed on the sidelines. Bu now, of course we all know that a US market crash started just a couple of weeks later after I wrote this article, and didn’t stop falling until its valuation had been cut in half. This year, on July 25th, I vlogged here that US crony bankers had shut down the NYSE to prevent a stock market crash that had started to materialize that very day. Again, my vlog elicited some that said they were “not buying” what I believed at the time to be the most plausible explanation, based upon facts, of why bankers shut down the NYSE, which by the way, was an unprecedented move. Just one month later, in case people remained skeptical of my warning on July 25th, I followed up my previous warning with a much more urgent tweet that the bankers would not be able to stop the US stock market crash that they had stopped on July 25th. I released this more urgent warning on August 20th, just one day before the Dow Jones Industrial Index plummeted by more than 1,600 points in the following two days.


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We’re in a Raging Bear Market for Honor & Integrity Today

September 10th, 2015
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Today, we’re running a huge deficit in honor and integrity in everything affiliated with the banking industry, from falsified Enron-like accounting of financials by banks, to banker rigging of global stock markets, commodity futures contracts, forex and LIBOR rates in the US, Europe, Japan & China, to billionaires that have no ethics & principles when it comes to making a buck, and a misguided penchant of society to exclusively define success based upon the accumulation of vast material wealth. Last week, I spoke of 6 and 7-sigma events that statistically should be occurring with extreme rarity that have now been occurring with alarming frequency. The reason for this is largely due to the fact that global financial services has no foundation in honor and integrity and instead is rooted in fraud, deceit and thievery.  Consider that just since 25 August 2015, the Tokyo Nikkei Index, due to incessant BOJ (Bank of Japan) meddling and manipulation, has yo-yo’d from short-term lows to short-term highs more than an astounding 6,600 points, down another 776 points today as I type this after soaring by its largest one-day point gain in 7 years the preceding day. No wonder, as no mainstream media publication or TV “news” show ever discusses the true reasons behind what is causing such instability in global financial markets, that very few people in this world truly know what to do with their money and believe that every day in the global financial world is nothing more than just a wild crap shoot. But you can make sense of these seemingly rudderless price movements if you understand that it is all driven by fraud. At SmartKnowledgeU we’ve been moving in and out of markets for the past several weeks, shorting most markets with great success this year based upon our understanding of this fraud. Read the rest of this entry »

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SmartKnowledgeU_Vlog_005: Understand 6 Sigma Events to Predict Financial Market Behavior Accurately

September 2nd, 2015
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In today’s vlog, we discuss why an intelligent investment strategy is impossible without incorporation of market fraud analysis, something we have incorporated heavily into our strategies since we launched our company in mid-2007 and the key factor that is responsible for our outperformance of our benchmark yields by more than 127%+ from 2007 to August 2015. Our subscription CIO newsletter has even outperformed the soaring US S&P500 index (at least until August of 2015) by nearly 28% over this same investment period.


SKU_Vlog_005Click on the above image to play the video


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How We’re Beating the Market Riggers During This Period of Extreme Volatility in Global Stock Markets

August 27th, 2015
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Recently the volatility in US stock markets has been extreme to say the least, with intra-day volatility in the Dow Jones index an astounding 2,588 points on Monday and experiencing another intraday rollercoaster of more than 1,246 points yesterday (up 434 points at market open, down 313 points, then up 499 points). Number one, is there any way to actually play these markets without losing your shirt? Number two, is there any way to make sense of this extreme volatility?  First, start by turning off your television and putting down the New York Times and Wall Street Journal, because I haven’t heard one talking head or read one author of any mainstream media article that has been within 100 kilometers of the truth in their attempts to explain the source of the extreme volatility in US markets. The reality is that all of this extreme volatility is the direct result of Central Banker market manipulation and Commercial Banker HFT (High Frequency Trading) algorithms. If you understand anything about statistics and the 5-sigma, 6-sigma and 7-sigma events that have been happening in gold markets, stock markets and forex markets with regularity over the past 5-years, then you understand that such events would have only the most minute of chances of ever materializing were free markets to exist. For those that understand nothing about statistics, don’t worry, I’ll make a vlog about this concept and post it so next time anyone tries to tell you that the extreme volatility in US stock markets is due to a natural “correction”, you can call them out for knowing nothing about the next to zero probability of these events happening without massive manipulation. Just subscribe to my YouTube channel here to be informed of when I release this video. In fact, all of our current YouTube channel subscribers were well aware that a US stock market crash was coming well before it happened, as we posted a video on our channel on 25 July 2015 titled, “Bankers’ NYSE Shutdown to Stop US Stock Market Crash Will Eventually Fail”. Consequently, we hope that many of you that subscribe to our YouTube channel were able to earn some of the similar yields we earned this month by positioning yourself short in US stock markets sometime this month, as we provided adequate warning of what happened in US stock markets in the above video.


Here are two ways to remain profitable in this market:

(1) Disregard the commentary of big bank analysts and the mainstream media about the causes of this extreme volatility; and

(2) Make decisions based upon understand the fraud that is being exercised in these markets and have strategies to lock in profits and to prevent significant losses when banker manipulation causes huge reversals like the kind that happened yesterday.


In the meantime, even with all US markets rebounding by about 4% yesterday (on the backs of more Central Banker manipulation), as of market close yesterday, here is the performance of every asset we hold in our CIO (Crisis Investment Opportunities) newsletter this month since our last newsletter was released at the beginning of this month. +16.04%, +13.15%, +11.14%, +5.93%, +5.27%, +2.75%, -2.43%. And we closed out four positions that soared +36.54%, +18.19%, +16.40% and +21.01% in this past month. So with mainstream media commentary so wrong in saying that gold and silver advocates are all the same and always claim that it’s time to buy gold and silver stocks 24 hours a day, 7 days a week, 365 days a year, and in a year that our benchmark Philadelphia Gold & Silver Index is down -35.50% YTD, the yield of our CIO newsletter is positive YTD as of 26 August 2015. In fact, we told all of our clients two weeks ago that bankers were going to smash gold and silver prices once again, and last week, we opened up some short gold and short silver positions in preparation of the smash we knew was coming. Currently, our only two gold and silver stocks that we hold are among the positive yields above for this month. All of our other gains above came from shorting the US stock market into the huge fall that has occurred.


Remember, even though we released our Vlog_004: 8 Charts that Illustrate the Necessity of Owning Physical Gold and Silver earlier this week, if you read the video description in our YouTube channel we posted this disclaimer the same day we posted that vlog: “This video is not an endorsement of buying gold and silver right at these prices today, as specific guidance of when to buy gold and silver is provided only through our subscription services. However, this video should adequately outline the necessity of owning physical gold and silver to all viewers.” And indeed this is still true. We still strongly believe in the necessity of owning physical gold and silver, especially as prices become ridiculously cheap in these assets.


In the end, the best guidance we can provide to you is to learn the true drivers (Central Bankers) of what is making these stock markets (in the US and China) move so erratically and to expect massive volatile swings up and down and to have adequate strategies to deal with them. Stick to these two principles, and you will emerge from the rubble of these collapsing global stock markets fine. If you need some help with your strategies, please feel free to come by and read our fact sheets regarding our available strategic services.

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8 Charts that Illustrate the Necessity of Owning Gold & Silver

August 25th, 2015
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Welcome to SmartKnowledgeU_Vlog_004. Today we illustrate the necessity of owning gold and silver by discussing plunging fiat currencies, and in particular, 8 forex charts. Please note that today’s vlog is not an endorsement of buying gold and silver at today’s prices as we only provide specific price guidance in buying and selling to members of our subscription services. With crashing Chinese and US stock markets, and with crashing Asian RE markets one the way soon (especially in SE Asia), the necessity to own REAL money over FIAT currencies becomes even stronger.


please click on the above image and then click the link “watch this video on YouTube”

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The Key to Earning Positive Yields During Uncertain Global Markets & Stock Market Crashes

August 24th, 2015
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Many people think that being a contrarian investor is the key to earning positive yields because most of the time, most of the herd is wrong. However, being contrarian in it of itself is not sufficient in such times of fragile global economies and even more fragile financial markets. Last week, we warned that the US stock market was “ripe to break” and most people were shocked at how quickly the sell-off accelerated last Thursday and Friday. Certainly people would say being a gold and silver believer in the past four years was a contrarian view that hasn’t worked. However, we’ve been contrarian within a contrarian view at times, assuming short gold and short silver positions right before banker raids on gold and silver occurred, when most of the gold and silver community was expecting further rises in price. Furthermore, in a deceptive financial world in which distortion rules and truth is marginalized over and over again,  often times the truthful outlook is wrongly mislabeled and scorned as a “doomsday” outlook, especially in light of banker cheerleaders that attempt to sell every dip as a “buying opportunity” instead of as a warning of further larger drops as they may be. We’ve seen this narrative play out twice just within the past three months.


A few months ago, we were inundated with quite a few requests to consider adding Chinese stock market ETFs to our portfolio as Chinese stocks were rising in a seemingly unstoppable move higher. At least, the rise appeared to be “unstoppable” on the surface level, given that every Chinese banker was selling the move higher as a “get in now or be left behind” opportunity. But as we stated many times in this very newsletter, “things are fine [in structurally shaky markets] until they’re not”, meaning that when things go south, the selling could accelerate very quickly in a stock market crash. This is exactly what happened when the Chinese stock market crashed in June and the Shanghai composite collapsed by -35% and the CHINEXT index collapsed by -40% in a month’s time. Furthermore, as you will see from some of the mainstream media headlines below, the mainstream financial industry  is often quick to sell every pullback in the US stock markets in recent times as wonderful “buying opportunities”, even though anyone that actually bothers to look beyond the rhetoric could have easily spotted the numerous warning signs of impending structural collapse in both the Chinese stock market and US stock market that preceded both of their sell-offs and a potential US stock market crash.


Given our recent spot-on calls to short the US stock markets before they happened, quite a few of the positions we hold in our Crisis Investment Opportunities portfolio performed incredibly well last week. In fact, here is the performance of every single asset we hold in our CIO portfolio just this month thus far since we released our last newsletter: +27.27%, +17.30%, +10.80%, +21.01%, +4.80%, +2.67%, +5.61%, +0.35% and -0.42%. We hold the rest of our allocation outside of these returns in cash.


Again, many of you have heard us discuss the necessity of patience as an investing tactic when you have done your homework and are certain that your strategies are correct, even when the mainstream media is flooding the public with opposite strategies! For example, here is the massive difference between Mainstream Media (MSM) analysis and the real analysis we provide at SmartKnowledgeU. The one promise we have always kept to our clients is that we will always provide the truth to them, as ugly as it may be. Notice that we posted a warning on our Twitter account on 19 August 2015 of an imminent crash in US markets.



What has happened since then? The US S&P 500 tanked by -5.2% over the next two days, part of its worst one week performance in four years, and the Dow Jones Industrial Average (DJIA) tanked an absolutely massive -888.98 points the next two days on 20 August and 21 August completing a stock market crash of over 1000 points in just three days. Even the Chinese stock market crashed another -12.2% last week after so many investors in Chinese markets had been misled to believe that the Central Bankers in China were going to be able to successfully reinflate the Chinese markets and pump them higher again.  Look below as to what the MSM media was saying.



Incredibly they were saying to buy US stocks just one day after we warned that US stock markets were “ripe” for a selloff. And certainly, there were no shortage of headlines in the mainstream financial media about all the “opportunities” to go long Chinese stocks again when Chinese stocks temporarily rebounded from their initial crash. Investors in Chinese stock markets that tried to “buy the dip” discovered how wrong these headlines were as well, after Chinese markets crashed another -12.2% last week.  As you can see from the above returns of various hedges we took to guard against the very US stock market fall we stated was “imminent”, the very shorts that were not performing at all for us earlier in the month paid off in a big way this month due to our patience. Due to our patience, our yields are slightly positive for the year (though we are still holding a lot of cash at this point) at a time when the S&P500 is down -4.27% ytd and our benchmark XAU Philadelphia Gold & Silver Index is down -23.48% ytd.


Furthermore, check out another MSM headline below, disseminated by Credit Suisse called “No Hope for Gold Bugs?” on 11 August 2015.



Quite appropriately, since Credit Suisse declared gold “dead” as a safe-haven asset, gold has had its best run in over six months, moving higher by more than 5%+ in US dollars from $1,103.88 an ounce to $1,159 an ounce. These two headlines should prove to you that beyond doubt, the mainstream media is not interested in disseminating truth, but only in influencing your investment decisions to align perfectly with the wishes of big banks, whose wishes often are out of alignment with what is best for you. Furthermore, for those that were able to see through the banking industry’s “buy the dip” propaganda as it pertained to stock markets, US, Chinese, or otherwise, and actually exited US markets before last week’s huge sell-off and China’s stock markets before its huge crash that began in June, the tremendous volatility in all global financial markets this year has still scared many into holding cash only and taking zero action to protect their savings. This is NOT an intelligent strategy either as a hedge against the Central Bankers’ escalating global currency wars. Why? A strategy of holding your savings all in cash is 100% guaranteed to yield considerable real losses every year to your wealth. If you don’t understand this statement, then just subscribe to our YouTube channel and watch the upcoming vlogs that we will be posting over the next couple of weeks.


For now, remember that during phase 2 of this global economic crisis (that never really ended in 2008), inaction will be a disastrous strategy. For the most part, there are only two strategies that will yield positive yields during these uncertain times. 

(1) Understand the long-term trends that are in play and to have the courage of your convictions to be patient enough for them to turn profitable.

(2) Understand that the extreme volatility of financial markets this year will necessitate constant tweaking to your long-term strategy, and that, at times, you will have to exercise caution and exit positions as Central Bankers interfere in markets to introduce short-term volatility that may go against your positions in the short-term.  After this artificial short-term volatility passes, then you will need to  re-enter your positions with the understanding that your assessment of long-term trends are still intact and correct.

Stick to the above two strategies, and you will be fine. Want to know if gold and silver will continue to rise, or if we are now due for a pullback in price again? Want to know if this pullback in US markets is likely to accelerate now, or if the Feds can once again interfere and re-inflate them? Or need some assistance with managing the two above strategies? Then come by and learn how to protect and preserve your wealth during global times of financial uncertainty and volatility. How have these two strategies have worked out for us during the past 8 years? Click here to view SmartKnowledgeU portfolio yields from the date of our launch in June 2007 until year-end 2014.

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Have Gold & Silver Finally Bottomed?

August 20th, 2015
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Have gold and silver finally bottomed? As all of our clients know and those that follow us religiously on our blog and on this newsletter, I’ve been bearish on gold and silver now for nearly the entire year to date. At SmartKnowledgeU, we’ve only been long in gold and silver mining stocks for 40 days this year and in cash the rest of the time regarding our allocation to mining stocks. I’ve also been providing many warnings regarding the great fragility in US stock markets, Asian RE markets and emerging market currencies, and the last time I’ve issued so many warnings about the overall fragility of the global financial system was in 2008, right before the global financial crisis hit, so please take heed of these warnings. All my look fine on the surface, but if you look beneath the surface of the incessantly propped up US stock market indexes, for example, you will discover collapsing breadth that is flashing all kinds of warning signals for a coming major correction, if not crash. Banker committed market fraud is only sustainable until it is not.

tsx15yr Read the rest of this entry »

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