Quotulatiousness

March 22, 2019

Understanding the Great Depression

Marginal Revolution University
Published on 23 May 2017

In this video, we examine the causes behind the Great Depression with the help of the aggregate demand-aggregate supply model.

In 1929, the stock market crashed and an air of pessimism swept across America — making bank depositors nervous. What would you do if you thought your money might not be safe with the bank? You’d probably want it back in your own hands. What happened next? A run on the banks.

Along with the Stock Market Crash of 1929, it’s one of the iconic moments of the early days of Great Depression. However, the Great Depression was an incredibly complex downturn in which the economy experienced a series of aggregate demand shocks. By the end of this video, you’ll walk away with a better understanding of the many factors behind the Great Depression and how to apply the AD-AS model to a real-world scenario.

March 9, 2019

QotD: “Scientific” urban planning versus messy, unscientific, evolved town growth

Filed under: Architecture, Environment, Government, History, Quotations — Tags: , , — Nicholas @ 01:00

Natural organically-evolved cities tend to be densely-packed mixtures of dark alleys, tiny shops, and overcrowded streets. Modern scientific rationalists came up with a better idea: an evenly-spaced rectangular grid of identical giant Brutalist apartment buildings separated by wide boulevards, with everything separated into carefully-zoned districts. Yet for some reason, whenever these new rational cities were built, people hated them and did everything they could to move out into more organic suburbs. And again, for some reason the urban planners got promoted, became famous, and spread their destructive techniques around the world.

Ye olde organically-evolved peasant villages tended to be complicated confusions of everybody trying to raise fifty different crops at the same time on awkwardly shaped cramped parcels of land. Modern scientific rationalists came up with a better idea: giant collective mechanized farms growing purpose-bred high-yield crops and arranged in (say it with me) evenly-spaced rectangular grids. Yet for some reason, these giant collective farms had lower yields per acre than the old traditional methods, and wherever they arose famine and mass starvation followed. And again, for some reason governments continued to push the more “modern” methods, whether it was socialist collectives in the USSR, big agricultural corporations in the US, or sprawling banana plantations in the Third World.

Traditional lifestyles of many East African natives were nomadic, involving slash-and-burn agriculture in complicated jungle terrain according to a bewildering variety of ad-hoc rules. Modern scientific rationalists in African governments (both colonial and independent) came up with a better idea – resettlment of the natives into villages, where they could have modern amenities like schools, wells, electricity, and evenly-spaced rectangular grids. Yet for some reason, these villages kept failing: their crops died, their economies collapsed, and their native inhabitants disappeared back into the jungle. And again, for some reason the African governments kept trying to bring the natives back and make them stay, even if they had to blur the lines between villages and concentration camps to make it work.

Why did all of these schemes fail? And more importantly, why were they celebrated, rewarded, and continued, even when the fact of their failure became too obvious to ignore? Scott gives a two part answer.

The first part of the story is High Modernism, an aesthetic taste masquerading as a scientific philosophy. The High Modernists claimed to be about figuring out the most efficient and high-tech way of doing things, but most of them knew little relevant math or science and were basically just LARPing being rational by placing things in evenly-spaced rectangular grids.

But the High Modernists were pawns in service of a deeper motive: the centralized state wanted the world to be “legible”, ie arranged in a way that made it easy to monitor and control. An intact forest might be more productive than an evenly-spaced rectangular grid of Norway spruce, but it was harder to legislate rules for, or assess taxes on.

The state promoted the High Modernists’ platitudes about The Greater Good as cover, in order to implement the totalitarian schemes they wanted to implement anyway. The resulting experiments were usually failures by the humanitarian goals of the Modernists, but resounding successes by the command-and-control goals of the state. And so we gradually transitioned from systems that were messy but full of fine-tuned hidden order, to ones that were barely-functional but really easy to tax.

Scott Alexander, “Book Review: Seeing Like a State”, Slate Star Codex, 2017-03-16.

March 1, 2019

Dune – Wandering in the Desert – Extra Sci Fi – #3

Filed under: Books, Environment — Tags: — Nicholas @ 04:00

Extra Credits
Published on 26 Feb 2019

Dune is an ecological novel. Nature isn’t just the background setting, but firmly integrated into the science and systems of the world. Frank Herbert explores big ideas around environmental conservation, through the spice that must flow.

February 25, 2019

QotD: Defining mineral reserves

Filed under: Economics, Environment, Quotations, Science — Tags: , , — Nicholas @ 01:00

The European chemists organisation – EuChemS – has just added to the torrent of environmental drivel with their new periodic table. They’re trying to tell us which elements are going to run out when and thus tell us all that we’ve got to recycle. The entire process is bunkum because they’ve not understood the first thing about the supply of minerals. They simply do not know the meaning of mineral reserve that is.

Just for the edification of anyone who does drool when contemplating their own nasal effluvia – you know, a member of Greenpeace, that sort of person – a mineral reserve is something we’ve proven, yes proven, that we can extract from using today’s technology, at today’s prices, and make a profit. It costs a lot of money to prove these facts. Thus we only prove for what we’re likely to use in the next few decades. Mineral reserves are, to a reasonable level of accuracy, just the working stock of current mines.

There is no relationship, no relationship at all, between our mineral reserves and how much of that element or mineral is available to us to use. Really do grasp this point. It’s not that the amount is larger. It’s not that the multiple is high. It’s that there is no relationship at all. There are, for example, absolutely no mineral reserves of hafnium anywhere on the planet. Nothing, absolutely nada. At current rates of usage we might run out some few billion years after the Sun goes Red Giant. The European Chemical Society tries to tell us that there’s a serious risk of running short of Hafnium in the next 100 years. This is so gibberingly stupid that it would get a laugh from German geologists – I know because I told some this once and they giggled. Seriously, German – German – geologists, giggling.

Tim Worstall, “More Environmental Drivel With New Periodic Table – We’re Going To Run Out Of Helium”, Continental Telegraph, 2019-01-23.

February 23, 2019

How a statistical error became the key argument in the “everyone must turn vegan” movement

Filed under: Economics, Environment, Food, Health, Politics, USA — Tags: , , , — Nicholas @ 05:00

At The Conversation, Frank M. Mitloehner explains how a flawed statistic — comparing numbers derived from non-parallel bases — evolved into one of the most widely quoted arguments for governments forcing people to give up meat in their diet:

As the scale and impacts of climate change become increasingly alarming, meat is a popular target for action. Advocates urge the public to eat less meat to save the environment. Some activists have called for taxing meat to reduce consumption of it.

A key claim underlying these arguments holds that globally, meat production generates more greenhouse gases than the entire transportation sector. However, this claim is demonstrably wrong, as I will show. And its persistence has led to false assumptions about the linkage between meat and climate change.

[…]

Global livestock production by region (milk and eggs expressed in protein terms).
Source: United Nations Food and Agriculture Organization.

Setting the record straight on meat and greenhouse gases
A healthy portion of meat’s bad rap centers on the assertion that livestock is the largest source of greenhouse gases worldwide. For example, a 2009 analysis published by the Washington, D.C.-based Worldwatch Institute asserted that 51 percent of global GHG emissions come from rearing and processing livestock.

According to the U.S. Environmental Protection Agency, the largest sources of U.S. GHG emissions in 2016 were electricity production (28 percent of total emissions), transportation (28 percent) and industry (22 percent). All of agriculture accounted for a total of 9 percent. All of animal agriculture contributes less than half of this amount, representing 3.9 percent of total U.S. greenhouse gas emissions. That’s very different from claiming livestock represents as much or more than transportation.

Why the misconception? In 2006 the United Nations Food and Agriculture Organization published a study titled “Livestock’s Long Shadow,” which received widespread international attention. It stated that livestock produced a staggering 18 percent of the world’s greenhouse gas emissions. The agency drew a startling conclusion: Livestock was doing more to harm the climate than all modes of transportation combined.

This latter claim was wrong, and has since been corrected by Henning Steinfeld, the report’s senior author. The problem was that FAO analysts used a comprehensive life-cycle assessment to study the climate impact of livestock, but a different method when they analyzed transportation.

For livestock, they considered every factor associated with producing meat. This included emissions from fertilizer production, converting land from forests to pastures, growing feed, and direct emissions from animals (belching and manure) from birth to death.

However, when they looked at transportation’s carbon footprint, they ignored impacts on the climate from manufacturing vehicle materials and parts, assembling vehicles and maintaining roads, bridges and airports. Instead, they only considered the exhaust emitted by finished cars, trucks, trains and planes. As a result, the FAO’s comparison of greenhouse gas emissions from livestock to those from transportation was greatly distorted.

No matter which “global crisis” they cry up, their answer is always “more government”

Filed under: Environment, Government, Media, Politics — Tags: , , , — Nicholas @ 03:00

Alex Noble on the remarkable consistency of the proffered solution to any and all “global” problems:

Climatechangers are really just watermelons – green on the outside but red on the inside. You’ll notice that none of their ideas about how to prevent climate change involve anything other than bigger government.

For them, climate change is just a pretext – an irrefutable argument (“if you disagree that we need to save the planet you must want people to die!”) that enables them to demand more taxes and more power for them and their friends so they can set the world to rights.

And out here in the real world, they have their army of useful innocents – voters fearful of tackling the real world on their own without help from a cosseting State, all too ready to swallow any argument for bigger government.

Climate change largely consists of menacing them with stories about rising water and melting ice and starving polar bears, so they will allow our civil rights to be ridden over to keep us all safe. They demand it, in fact.

As H.L Mencken said, “The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary”

February 12, 2019

QotD: Weather

Filed under: Environment, Humour, Quotations — Tags: — Nicholas @ 01:00

[W]ho wants to be foretold the weather? It is bad enough when it comes, without our having the misery of knowing about it beforehand.

Jerome K. Jerome, Three Men in a Boat (To Say Nothing of the Dog), 1889.

February 9, 2019

The price tag for Alexandria Ocasio-Cortez’s renewable energy dream

Filed under: Economics, Environment, Politics, USA — Tags: , — Nicholas @ 03:00

At Reason, Ronald Bailey looks at how much it would cost to implement Alexandria Ocasio-Cortez’s post-fossil-fuel plans:

There’s a lot to consider in this resolution, but let’s for the time being focus on the goal of “meeting 100 percent of the power demand in the United States through clean, renewable, and zero-emission energy sources” by 2030. The resolution is light on fiscal details, so let’s consider the question of how achieving this goal would cost.

As it happens, a team of Stanford engineers led by Mark Jacobson outlined just such a plan back in 2015. Jacobson’s repowering plan would involve installing 335,000 onshore wind turbines; 154,000 offshore wind turbines; 75 million residential photovoltaic systems; 2.75 million commercial photovoltaic systems; 46,000 utility-scale photovoltaic facilities; 3,600 concentrated solar power facilities with onsite heat storage; and an extensive array of underground thermal storage facilities.

Assuming steep declines in the costs of each form of renewable electric power generation, just running the electrical grid using only renewable power would still cost roughly $7 trillion by 2030. The Information Technology and Innovation Foundation calculated that the total cost of an earlier version of Jacobson’s scheme would amount to $13 trillion. And based on how fast it has taken to install energy generation infrastructure in the past, Jacobson’s repowering plan would require a sustained installation rate that is more than 14 times the U.S. average over the last 55 years and more than six times the peak rate.

The cost — $7 trillion — would be spent to save … how much?

    ..global warming at or above 2 degrees Celsius beyond preindustrialized levels will cause— (A) mass migration from the regions most affected by climate change; (B) more than $500,000,000,000 in lost annual economic output in the United States by the year 2100;

$500 billion a year isn’t a lot in the context of the US economy. It’s currently around $20 trillion in size, so we’re talking about 2.5% of the economy being lost. But of course we’re also predicting that the economy will grow between now and then. Actually, we think the US economy will be about $100 trillion a year by 2100. So we’re talking about 0.5% of that economy. Or about the change in size of the US economy between September and December last year. Think how much richer we did feel over those few months. And how much poorer we’d be if it hadn’t happened, that growth.

Oh, and to avoid that loss AOC is suggesting that we spend $7 trillion now? That just doesn’t pass the cost benefit test. It doesn’t even pass at the Stern Review’s special discount rate.

Which is, of course, what all the economists have been trying to tell us all about dealing with climate change. Don’t do it by central planning, do it by using market incentives. Have a carbon tax. Don’t try and do it too quickly – William Nordhaus gained his Nobel in part for saying this – but do it more gradually over time. Don’t junk what we’ve got that already works, instead when the normal time comes to replace it then make sure it’s non-carbon emitting. Finally, don’t do it the expensive way, do it the cheap way. For the cheaper we make it to solve it then the more of the problem we’ll solve. You know, humans usually doing less of the expensive things and more of the cheap?

QotD: The global utility of a national carbon tax

Filed under: Economics, Environment, Government, Quotations — Tags: , , , — Nicholas @ 01:00

James Griffin [of] Texas A&M’s Bush School of Government […] is a carbon-tax advocate who begins by acknowledging what everyone knows but hardly anyone says: that, absent subsidies and mandates, renewables and so-called green energy could not begin to compete with oil and coal, and the market would be entirely dominated by fossil fuels.

The carbon tax is one of those policy ideas that is largely sound in theory but runs up hard upon the shoals of reality. I am not convinced that a national carbon tax would change U.S. consumer behavior to such an extent that it would have positive effects on what is after all a global phenomenon, nor am I convinced that the U.S. government would use the revenue from a carbon tax to invest in real climate-change mitigation. That makes the carbon tax a very expensive way of demonstrating good intentions, which does not seem to me like a very fruitful way to work. And compared to more direct programs, such as clearing the way for the development of new, modern, nuclear-power facilities, a carbon tax is even less attractive.

Kevin D. Williamson, “The Case for a Carbon Tax”, National Review, 2017-03-08.

February 6, 2019

The “Green New Deal” of Alexandria Ocasio-Cortez won’t work

Filed under: Economics, Environment, Politics, USA — Tags: , , — Nicholas @ 03:00

Tim Worstall predicts — well in advance of hearing any details of Alexandria Ocasio-Cortez’s Green New Deal — that it won’t work:

Alexandria Ocasio-Cortez speaking at the Reardon Convention Center in Kansas City, on 20 July 2018.
Photo by Mark Dillman via Wikimedia Commons.

Alexandria Ocasio-Cortez is to reveal the details of her Green New Deal in the next few days – the one thing we absolutely know about this being that it won’t work. This isn’t a commentary upon climate change nor the desirability of doing something about it. This is just a simple statement of fact about the universe we inhabit. As with the climate the economy is a complex, even chaotic, thing. Plans to substantially reform it therefore don’t work, no matter how egghead the planners nor pure in motive the instigators.

All of this being why the very reports which tell us we should do something about climate change – say, the Stern Review – tell us that we shouldn’t try to have those detailed plans for what we’ll do and how we’ll do it. Instead we’ve got to use the only management technique we’ve got for something this complex, markets and prices. Which is why near every economist who has even thought about the problem advocates either cap and trade or a carbon tax.

This is, of course, just a rerun of Friedrich Hayek’s point in his Nobel Lecture, “The Pretence of Knowledge”. That universe out there is a complicated place. There’s just no manner that the planner can gain enough information about it, in anything like real time, to be able to plan it. We’ve thus got to use other methods to bend that reality to our will. We can jam a crowbar into prices with a carbon tax for example, but we can’t start planning who should be taking how many car journeys in what sort of vehicles powered in what manner.

So, the Green New Deal from Alexandria Ocasio-Cortex, it fails at this first and basic hurdle. She’s using the wrong method to try to solve the agreed upon problem. Central planning just doesn’t work.

[…]

The reason we want cheap solutions to climate change is that this justifies producing more of a solution. Again, the justification of doing something about climate change is that it will be expensive. So, we should spend up to the amount of the damage to prevent it. Say it will cost $100, then we’re willing to spend up to $99.99 to stop it. This makes us one cent better off. We’re not willing to spend $200 to stop those $100 damages, that would make us poorer.

And more – we should spend that $99.99 as efficiently as we can because that means we’ll stop more climate change for our dollars. That also makes us richer.

Don’t forget, we’ve all already agreed that we’re going to have some climate change. Our arguments are over how much and how much are we willing to do to stop how much of it?

January 31, 2019

Lord of the Rings – The Two Towers – Extra Sci Fi – #2

Filed under: Books, Environment, Media — Tags: , — Nicholas @ 04:00

Extra Credits
Published on 29 Jan 2019

Tolkien’s writing was majorly influenced by the world he lived in — the concerns of World War II and the aftermath thereof were reflected in the themes of industrialization, more highly nuanced good-and-evil, and “questing” that The Two Towers emphasizes.

The Two Towers presents one big theme that impacted science fiction: industrialization. Isengard really brought into popularity the whole idea of “if you don’t treat nature with respect, you’ll be doomed by nature’s wrath.”

January 19, 2019

The Lancet‘s new guidelines are a great leap forward … to worse-than-WW2 rationing

Filed under: Britain, Environment, Food, Health, Media — Tags: , — Nicholas @ 13:17

A new initiative by The Lancet and EAT, a billionaire’s pro-starvation advocacy group, involves new food guidelines that may leave Britons feeling a tiny bit … hungry:

The Lancet has got into bed with EAT to transform the global food supply. EAT is a campaign group run by a Norwegian billionaire who flies around the world in a private jet telling people to eat less meat to save the planet. The Lancet‘s interest is in getting people to live off lentils for the good of their health.

How much less meat do these people think we should be eating? Much, much less. Less than a sausage a week would be the pork ration in their brave new world.

As “Captain Nemo” commented on David Thompson’s blog:

“It appeared that there had even been demonstrations to thank The Lancet for raising the sausage ration to seven grams a week. And only yesterday, he reflected, it had been announced that the ration was to be REDUCED to seven grams a week…”

My apologies to Orwell.

January 12, 2019

The role of tyche in the fall of the Roman empire

Filed under: Environment, Europe, History — Tags: , , — Nicholas @ 03:00

Williamson Murray posted this review at The Strategy Bridge back in August, but I don’t recall seeing it linked anywhere. He emphasizes the role of tyche both in the small events and the greater flow of history (tyche is a Greek word meaning luck, chance, or random events that change the course of human activity). In his review, he makes it clear that he feels earlier historians have failed to emphasize just how much tyche impacted the Roman world:

The approximate extent of the Roman empire circa 395AD, when the empire was formally divided into eastern and western zones with joint emperors in Rome and Constantinople.

In The Fate of Rome: Climate, Disease & the End of an Empire, Kyle Harper has presented us with a case study, namely the collapse of the Roman world in the period between the third and sixth centuries CE. Here tyche, in the largest sense, created a perfect storm of disastrous natural events and happenings that brought about the complete collapse of the Western Roman Empire in the fifth century CE, and eventually the ability of the Eastern Roman Empire to control much of the Mediterranean world after the seventh century. These natural events created conditions the Roman world was incapable of understanding, but which nevertheless brought about the collapse of one of the greatest, longest lasting empires in history. What Professor Harper’s book underlines is that the military difficulties that Rome’s generals and soldiers experienced in the period from the third century on were only the surface manifestations of far deeper systemic changes that could not be predicted, but which in combination created a perfect storm. Thus, fate, or more accurately tyche, undermined the best efforts to prevent what turned out to be a disastrous collapse.

The slide to catastrophe began after a period of unparalleled prosperity that had seen the population of Rome grow from approximately 60 million under Emperor Augustus in 33 BC to 75 million in 165 AD. The historian Edward Gibbon would describe the period in the following terms: “If a man were called to fix a period in the history of the world, during which the condition of the human race was most happy and prosperous, he would without hesitation, name” that period. Significantly, archeological and scientific evidence indicates the period from 200 BCE through the mid-point of the second century CE was extraordinarily favorable in terms of its climate for agriculture and the development of an extensive and expansive civilization in the Mediterranean and Western Europe. Combined with the favorable weather was a period of general peace under the empire that, for the most part, removed the generally disastrous role played by war throughout history. Except for one short period of civil wars between the claimants to Nero’s throne (70-71 CE, the year of the three emperors) and the two Jewish rebellions (66-71 CE and 135 CE), Rome fought its wars on the frontiers: the Rhine, the Danube, and Syria.

All that changed in the midst of the rule of the emperor Marcus Aurelius. The traditional narrative suggests that in 165 CE Roman soldiers returning from the campaign against the Parthians in Mesopotamia brought a plague. In fact, the pathogen most probably came through the Red Sea, brought by traders. In the great urban centers of the empire, all closely linked, it found an ideal environment. Given the extent of trade among these urban centers, the smallpox pathogens spread rapidly from urban center to urban center. As Professor Harper points out, “[i]n one sense, the Antonine Plague was a creature of chance, the final unpredictable outcome of countless millennia of evolutionary experimentation. At the same time, the empire — its global connections and fast-moving networks of communications — had created the ecological conditions for the outbreak of history’s first pandemic.” We have no way of knowing how many died, but it was substantial, on the order most probably of what was to occur in the Black Death of the fourteenth century.

Had the Antonine Plague been the only major problem besetting the Romans, the empire would likely have weathered the initial storm without catastrophic results. It was, however, not the only major factor that would affect the long-term health of the empire, based as it was on the slight surpluses that subsistence agriculture produced. Almost concurrently with the Antonine Plague, the weather patterns across the Mediterranean and Europe, reaching into central Asia, began a slow, steady shift that resulted in an average drop in temperature and rainfall. That decline would continue through to the mid-fifth century, which was to see the beginning of an even colder period, what climatologists are now calling the “Late Antique Little Ice Age” — one that was even less favorable to agriculture.

November 27, 2018

Cutting back on ethanol makes financial and environmental sense

Craig Eyermann explains why President Trump’s push to expand the use of ethanol in cars is a bad call for many reasons:

For example, because ethanol packs less energy per gallon than gasoline does, vehicle owners can expect to get even lower fuel mileage from the expansion of E15 fuel (a blend of 15% ethanol with 85% gasoline) under the new mandate to include more ethanol in automotive fuels, which would be 4% to 5% less than they would achieve if they only filled their vehicles with 100% gasoline. Today’s vehicle owners already pay a fuel efficiency penalty of 3% to 4% lower gas mileage from the E10 ethanol-gasoline fuel blend mandated under the older ethanol content rules, where the new rules will require even more fill-ups.

Beyond that, to the extent that it diverts corn from food markets to fuel production, corn-based ethanol production also jacks up the price of food—the corn itself, plus everything that eats corn, like beef cattle. One review of multiple studies found that the U.S. government’s corn-based ethanol mandates added 14% to the cost of agricultural commodity prices from 2005 through 2015.

Last summer, the Environmental Protection Agency also found that burning increasing amounts of ethanol has made America’s air dirtier because it generates more ozone pollution, which contributes to smog formation. Worse, growing the additional corn to make more ethanol has also increased agricultural fertilizer runoff pollution in the nation’s rivers and waterways.

That runoff has been linked to the increased incidence of harmful algal blooms, which have been responsible for contaminating drinking water and contributing to red tide events in coastal regions, where fish and other aquatic organisms have been killed off.

There is a solution to these federal government-generated pollution problems: stop forcing corn-based ethanol to be used in the nation’s fuel supplies. There’s even a case study from Brazil, where the city of Sao Paulo found that its air became cleaner after it switched from ethanol-based fuels to gasoline in the years from 2009 to 2011.

November 19, 2018

“You call someplace paradise/kiss it goodbye”

Filed under: Environment, USA — Tags: , , , , — Nicholas @ 05:00

The Eagles song “The Last Resort” references a generic paradise, not the California town of that name, yet it fits disturbingly well, as Gerard Vanderleun describes:

Paradise is not a town on some flat land out on the prairies or deep in the desert. Paradise is a series of cleared areas and roads superimposed on an extremely rugged terrain composed of deep, narrow ravines and high and densely wood ridges. The Skyway is fed by hundreds of paved and unpaved roads that twist and turn and rise and dip and then, at their OFFICIAL ends, run deeper still and far off the grid. If you live in Paradise you know there are hundreds of people living back up in those ravines and ridges that would be hard to find before the fire. In those places, the poor are lodged tighter than ticks.

I’ve seen, before the fire this time, people in the outback of Paradise so abidingly poor they were living in trailers from the 70s resting on cinder blocks and at most only two winters away from a pile of rust. These people would have had no warning of a fire, no warning at all. Instead of “sheltering in place” they would have been “incinerated in place.”

In the ravines and forests of Paradise, cell reception was so spotty that AT&T gave me my own personal internet driven cell-phone tower. If those off the grid in Paradise actually owned cell phones they would have been lucky to get an alert. But most of those did not own cell phones, and landlines didn’t run that deep in the woods. When the fire closed over them they would have had no warning. No warning until the trailer melted around them. And then there was, out behind but still close to their trailer, their large propane tank.

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