Peak Inflation’ Keeps Peaking Progressive economic policies are crushing low-wage workers.

West Dundee Hawkeye

HR All-American
Gold Member
Sep 28, 2003
2,659
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Peak Inflation

The economists predicting “peak inflation” have been right in one sense: Inflation does keep peaking, with Friday’s Labor Department report showing the consumer-price index at a 40-year high of 8.6% on an annual basis. What progressive spending gave to Americans in welfare and new entitlements, it has taken away in a lower standard of living.

Energy and food prices made up much of the May increase, but this is cold comfort for consumers. Americans used to be able to substitute lower-cost protein when beef prices rose. But everything at the supermarket has become more expensive in the past year—eggs (32.2%), chicken (16.6%), milk (15.9%), even soup (13.9%). Lower-wage workers are getting crushed by Bidenomics.

Economists who claimed inflation was transitory and driven by increases in select categories such as used cars are belatedly admitting they were wrong. What else can they do? Prices for some goods have moderated in recent months, but inflation is broadening. That’s why the so-called core inflation index that excludes energy and food is up 6% over the past 12 months and 0.6% from April.

Rents have risen 5.2% over the last year, though housing websites estimate they’re up double digits in most places. Travel has become much more expensive, as hotel (22.2%), airline (37.8%) and restaurant (9%) prices increase. Americans are often paying more for less as businesses scale back services—e.g., no daily room-cleaning—amid labor shortages.

A historically tight labor market has pushed up nominal wages, but worker pay isn’t keeping up with prices. Real average hourly wages have fallen 3% over the last year, with two-thirds of that decline in the last four months.

One lesson is that progressive welfare spending and expanded child-tax credits in the name of aiding workers contributed to inflation that erased the value of those benefits. Workers would be far better off now if Congress hadn’t passed $2.8 trillion in Covid “relief” in late 2020 and early 2021. The federal government has $6.7 trillion more debt than before the pandemic, and inflation isn’t abating.
Once inflation sets in, it acquires its own momentum and isn’t easy to break. The personal savings rate in April fell to 4.4%, the lowest since September 2008, as consumers spend more on almost everything. Inflation has battered consumer economic confidence, and one risk is that it will cause Americans to reduce purchases and slow the economy.

The May inflation report shows how much catching up the Federal Reserve still has to do to reduce inflation. That means higher interest rates, which means greater risks to asset prices and the economy. Markets took a header on Friday, with equities down nearly 3% and the tech-heavy Nasdaq off 3.5%. Has anyone other than green-energy subsidy firms benefited from the Biden economy?

Democrats owe West Virginia Sen. Joe Manchin thanks for saving them from worse inflation had they passed $4.5 trillion in Build Back Better spending. The May report ought to kill BBB’s last desperate vestiges.
 

bhawk24bob

HR Legend
Jul 8, 2001
17,236
4,880
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It takes two to tango to create this mess but the onus is on Biden to get it under control as he is the Commander in Chief. All he does is talk; congratulations, that won't fix anything.
 
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Sooner-Be-Dead

HR Heisman
Sep 2, 2003
9,545
2,743
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Reducing discretionary spending and lower asset prices isn’t the problem as much as it is the solution.
 
Dec 31, 2014
11,989
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Energy controls inflation. It’s baked into everything.

Every major energy producer on Earth hates American imperialism, openly or clandestinely.

Russia - Check
Iran - Check
Venezuela - Check
Saudis - Check

We need to end western civilization’s dependence on these regimes. Sooner rather than later.

Drill in US oil/nat gas, fine.
Nuclear powered plants.
Renewables.

All of it, locally. Pronto.
 

Chishawk1425

HR Legend
Nov 27, 2019
43,849
74,105
113
Peak Inflation

The economists predicting “peak inflation” have been right in one sense: Inflation does keep peaking, with Friday’s Labor Department report showing the consumer-price index at a 40-year high of 8.6% on an annual basis. What progressive spending gave to Americans in welfare and new entitlements, it has taken away in a lower standard of living.

Energy and food prices made up much of the May increase, but this is cold comfort for consumers. Americans used to be able to substitute lower-cost protein when beef prices rose. But everything at the supermarket has become more expensive in the past year—eggs (32.2%), chicken (16.6%), milk (15.9%), even soup (13.9%). Lower-wage workers are getting crushed by Bidenomics.

Economists who claimed inflation was transitory and driven by increases in select categories such as used cars are belatedly admitting they were wrong. What else can they do? Prices for some goods have moderated in recent months, but inflation is broadening. That’s why the so-called core inflation index that excludes energy and food is up 6% over the past 12 months and 0.6% from April.

Rents have risen 5.2% over the last year, though housing websites estimate they’re up double digits in most places. Travel has become much more expensive, as hotel (22.2%), airline (37.8%) and restaurant (9%) prices increase. Americans are often paying more for less as businesses scale back services—e.g., no daily room-cleaning—amid labor shortages.

A historically tight labor market has pushed up nominal wages, but worker pay isn’t keeping up with prices. Real average hourly wages have fallen 3% over the last year, with two-thirds of that decline in the last four months.

One lesson is that progressive welfare spending and expanded child-tax credits in the name of aiding workers contributed to inflation that erased the value of those benefits. Workers would be far better off now if Congress hadn’t passed $2.8 trillion in Covid “relief” in late 2020 and early 2021. The federal government has $6.7 trillion more debt than before the pandemic, and inflation isn’t abating.
Once inflation sets in, it acquires its own momentum and isn’t easy to break. The personal savings rate in April fell to 4.4%, the lowest since September 2008, as consumers spend more on almost everything. Inflation has battered consumer economic confidence, and one risk is that it will cause Americans to reduce purchases and slow the economy.

The May inflation report shows how much catching up the Federal Reserve still has to do to reduce inflation. That means higher interest rates, which means greater risks to asset prices and the economy. Markets took a header on Friday, with equities down nearly 3% and the tech-heavy Nasdaq off 3.5%. Has anyone other than green-energy subsidy firms benefited from the Biden economy?

Democrats owe West Virginia Sen. Joe Manchin thanks for saving them from worse inflation had they passed $4.5 trillion in Build Back Better spending. The May report ought to kill BBB’s last desperate vestiges.
Nice work epic Trump failure. Cut taxes for the 1% and couldn't of handled 2020 any worse. Then the **** attempted an insurrection to steal power beginning of 2021. Get a CLUE
 
Sep 23, 2011
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Running the money printing press while holding interest rates at record lows has its consequences.

The global argument is idiotic, we control the supply and value of our currency through our financial actions.

Inflation is rampant now in all countries that threw out financial responsibility for immediate gratification.
 
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Bonerfarts

HR Heisman
Gold Member
Nov 15, 2015
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We just ignoring the trillions of dollars Trump printed and injected into circulation? No could have predicted inflation after the money printer goes brrrrr.
 

BioHawk

HR Legend
Sep 21, 2005
38,605
39,307
113
It takes two to tango to create this mess but the onus is on Biden to get it under control as he is the Commander in Chief. All he does is talk; congratulations, that won't fix anything.
I'd like to hear the Republican plan to reduce inflation. I mean, clearly they have all the ideas here. So let's here it. I'm sure they are just waiting for the right time to get that legislation written.
 

West Dundee Hawkeye

HR All-American
Gold Member
Sep 28, 2003
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I'd like to hear the Republican plan to reduce inflation. I mean, clearly they have all the ideas here. So let's here it. I'm sure they are just waiting for the right time to get that legislation written.
Simple. Pass a Balanced Budget Amendment.

Then raise taxes and cut spending like Bill Clinton in 1993. Truman, Ike and Clinton each had 3 Balanced Budgets. The econ took off after the 14 million soldiers & sailors came home after WW2 and the 1990's boomed as well.
 

Urohawk

HR Heisman
Sep 30, 2001
6,987
8,429
113
Simple. Pass a Balanced Budget Amendment.

Then raise taxes and cut spending like Bill Clinton in 1993. Truman, Ike and Clinton each had 3 Balanced Budgets. The econ took off after the 14 million soldiers & sailors came home after WW2 and the 1990's boomed as well.
You mean like the Republican plan where Trump gave a huge tax cut to corporations?
 
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West Dundee Hawkeye

HR All-American
Gold Member
Sep 28, 2003
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You mean like the Republican plan where Trump gave a huge tax cut to corporations?
I am talking old fashion root canal Republicanism.

Raise the SS Rate, the Medicare Rate, Cap Gains Tax, the Estate Tax and the Marginal Income Tax Rate. Make it fricking hurt and not just those making above $400K. Raise rates for couples making $70K and above.

In 1993, for every $1 Clinton raised in taxes, he cut spending by $1.
 
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seminole97

HR Legend
Jun 14, 2005
16,564
16,690
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I am talking old fashion root canal Republicanism.

Raise the SS Rate, the Medicare Rate, Cap Gains Tax, the Estate Tax and the Marginal Income Tax Rate. Make it fricking hurt and not just those making above $400K. Raise rates for couples making $70K and above.

In 1993, for every $1 Clinton raised in taxes, he cut spending by $1.
2021 tax receipts were 18.1% of GDP.

1999 federal outlays were 18% of GDP.

The problem is the spending.
 

IaHawk44

HR MVP
Feb 20, 2006
1,266
1,309
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Peak Inflation

The economists predicting “peak inflation” have been right in one sense: Inflation does keep peaking, with Friday’s Labor Department report showing the consumer-price index at a 40-year high of 8.6% on an annual basis. What progressive spending gave to Americans in welfare and new entitlements, it has taken away in a lower standard of living.

Energy and food prices made up much of the May increase, but this is cold comfort for consumers. Americans used to be able to substitute lower-cost protein when beef prices rose. But everything at the supermarket has become more expensive in the past year—eggs (32.2%), chicken (16.6%), milk (15.9%), even soup (13.9%). Lower-wage workers are getting crushed by Bidenomics.

Economists who claimed inflation was transitory and driven by increases in select categories such as used cars are belatedly admitting they were wrong. What else can they do? Prices for some goods have moderated in recent months, but inflation is broadening. That’s why the so-called core inflation index that excludes energy and food is up 6% over the past 12 months and 0.6% from April.

Rents have risen 5.2% over the last year, though housing websites estimate they’re up double digits in most places. Travel has become much more expensive, as hotel (22.2%), airline (37.8%) and restaurant (9%) prices increase. Americans are often paying more for less as businesses scale back services—e.g., no daily room-cleaning—amid labor shortages.

A historically tight labor market has pushed up nominal wages, but worker pay isn’t keeping up with prices. Real average hourly wages have fallen 3% over the last year, with two-thirds of that decline in the last four months.

One lesson is that progressive welfare spending and expanded child-tax credits in the name of aiding workers contributed to inflation that erased the value of those benefits. Workers would be far better off now if Congress hadn’t passed $2.8 trillion in Covid “relief” in late 2020 and early 2021. The federal government has $6.7 trillion more debt than before the pandemic, and inflation isn’t abating.
Once inflation sets in, it acquires its own momentum and isn’t easy to break. The personal savings rate in April fell to 4.4%, the lowest since September 2008, as consumers spend more on almost everything. Inflation has battered consumer economic confidence, and one risk is that it will cause Americans to reduce purchases and slow the economy.

The May inflation report shows how much catching up the Federal Reserve still has to do to reduce inflation. That means higher interest rates, which means greater risks to asset prices and the economy. Markets took a header on Friday, with equities down nearly 3% and the tech-heavy Nasdaq off 3.5%. Has anyone other than green-energy subsidy firms benefited from the Biden economy?

Democrats owe West Virginia Sen. Joe Manchin thanks for saving them from worse inflation had they passed $4.5 trillion in Build Back Better spending. The May report ought to kill BBB’s last desperate vestiges.
Low wage workers, lol - quit voting for politicians who fight to keep the federal minimum wage at $7.25.
 
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IaHawk44

HR MVP
Feb 20, 2006
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The last 1.9 trillion give away that was not needed. No GOP support
It prevented a depression and lifted a lot of Americans out of poverty. How did you spend yours?

US bailouts prevented 1930s-style Great Depression say economists​

New study by economists Mark Zandi and Alan Blinder says US economic stimulus averted a worse downturn

 
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ihhawk

HR Legend
Gold Member
Feb 4, 2004
20,342
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Fort Lauderdale
It prevented a depression and lifted a lot of Americans out of poverty. How did you spend yours?

US bailouts prevented 1930s-style Great Depression say economists​

New study by economists Mark Zandi and Alan Blinder says US economic stimulus averted a worse downturn

The last one wasn’t needed at all. The economy was already coming back. Just look at the job gains in the last 6 months of Trumps term.
 

ihhawk

HR Legend
Gold Member
Feb 4, 2004
20,342
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113
Fort Lauderdale
It prevented a depression and lifted a lot of Americans out of poverty. How did you spend yours?

US bailouts prevented 1930s-style Great Depression say economists​

New study by economists Mark Zandi and Alan Blinder says US economic stimulus averted a worse downturn

You do realize that article is from 2010
 

mnole03

HR Legend
Mar 20, 2005
21,759
56,271
113
The last one wasn’t needed at all. The economy was already coming back. Just look at the job gains in the last 6 months of Trumps term.
Yup, and both Presidential candidates supported the third round of checks. That was squarely on the American people who voted for themselves more money and then complained about the consequences.
 

ihhawk

HR Legend
Gold Member
Feb 4, 2004
20,342
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Fort Lauderdale
Yup, and both Presidential candidates supported the third round of checks. That was squarely on the American people who voted for themselves more money and then complained about the consequences.
Trump was pushing for it but the GOP was against it. It would have been an interesting debate in the senate if Trump got elected and he pushed for it.

Also, if Trump was POTUS right now I have a feeling your thoughts would be different on inflation
 

BioHawk

HR Legend
Sep 21, 2005
38,605
39,307
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Simple. Pass a Balanced Budget Amendment.

Then raise taxes and cut spending like Bill Clinton in 1993. Truman, Ike and Clinton each had 3 Balanced Budgets. The econ took off after the 14 million soldiers & sailors came home after WW2 and the 1990's boomed as well.
I disagree with a balanced budget amendment for a lot of reasons, but it's an idea.

The idea that Republicans would raise taxes on anyone but the poor and middle class is....unrealistic. But I appreciate you posting an idea.

Unfortunately, no Republican in a position of power has proposed anything like this. Not even bad ideas.
 
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ihhawk

HR Legend
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Feb 4, 2004
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Fort Lauderdale
I disagree with a balanced budget amendment for a lot of reasons, but it's an idea.

The idea that Republicans would raise taxes on anyone but the poor and middle class is....unrealistic. But I appreciate you posting an idea.

Unfortunately, no Republican in a position of power has proposed anything like this. Not even bad ideas.
I’m as conservative as it gets with fiscal policy. I do however think the GOP is stuck in the 1980s mindset when it comes to tax policy. I look back at what Bush senior did with raising taxes. We needed to.

The mindset today is cutting taxes but doing nothing to curb spending is just stupid.
 
Dec 31, 2014
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So why haven’t gas prices come down 30%?
It’s almost as if gasoline refiners and suppliers are keeping their prices artificially high to maximize their profit.

 

RileyHawk

HR Legend
Gold Member
Aug 21, 2002
34,337
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I’m as conservative as it gets with fiscal policy. I do however think the GOP is stuck in the 1980s mindset when it comes to tax policy. I look back at what Bush senior did with raising taxes. We needed to.

The mindset today is cutting taxes but doing nothing to curb spending is just stupid.
Tax cuts are just republican speak for more stimulus. One that disproportionally benefits the rich.
 

Joes Place

HR King
Aug 28, 2003
121,334
113,971
113
Peak Inflation

The economists predicting “peak inflation” have been right in one sense: Inflation does keep peaking, with Friday’s Labor Department report showing the consumer-price index at a 40-year high of 8.6% on an annual basis. What progressive spending gave to Americans in welfare and new entitlements, it has taken away in a lower standard of living.

Energy and food prices made up much of the May increase, but this is cold comfort for consumers. Americans used to be able to substitute lower-cost protein when beef prices rose. But everything at the supermarket has become more expensive in the past year—eggs (32.2%), chicken (16.6%), milk (15.9%), even soup (13.9%). Lower-wage workers are getting crushed by Bidenomics.

Economists who claimed inflation was transitory and driven by increases in select categories such as used cars are belatedly admitting they were wrong. What else can they do? Prices for some goods have moderated in recent months, but inflation is broadening. That’s why the so-called core inflation index that excludes energy and food is up 6% over the past 12 months and 0.6% from April.

Rents have risen 5.2% over the last year, though housing websites estimate they’re up double digits in most places. Travel has become much more expensive, as hotel (22.2%), airline (37.8%) and restaurant (9%) prices increase. Americans are often paying more for less as businesses scale back services—e.g., no daily room-cleaning—amid labor shortages.

A historically tight labor market has pushed up nominal wages, but worker pay isn’t keeping up with prices. Real average hourly wages have fallen 3% over the last year, with two-thirds of that decline in the last four months.

One lesson is that progressive welfare spending and expanded child-tax credits in the name of aiding workers contributed to inflation that erased the value of those benefits. Workers would be far better off now if Congress hadn’t passed $2.8 trillion in Covid “relief” in late 2020 and early 2021. The federal government has $6.7 trillion more debt than before the pandemic, and inflation isn’t abating.
Once inflation sets in, it acquires its own momentum and isn’t easy to break. The personal savings rate in April fell to 4.4%, the lowest since September 2008, as consumers spend more on almost everything. Inflation has battered consumer economic confidence, and one risk is that it will cause Americans to reduce purchases and slow the economy.

The May inflation report shows how much catching up the Federal Reserve still has to do to reduce inflation. That means higher interest rates, which means greater risks to asset prices and the economy. Markets took a header on Friday, with equities down nearly 3% and the tech-heavy Nasdaq off 3.5%. Has anyone other than green-energy subsidy firms benefited from the Biden economy?

Democrats owe West Virginia Sen. Joe Manchin thanks for saving them from worse inflation had they passed $4.5 trillion in Build Back Better spending. The May report ought to kill BBB’s last desperate vestiges.

If "supporting Ukraine" against Russia is a "Progressive Economic Policy", could me IN.
 

Tom Paris

HR Legend
Gold Member
Oct 1, 2001
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The last 1.9 trillion give away that was not needed. No GOP support
Your 2nd sentence is correct. No GOP support ever in what Democrats try to do. 400 bills were on Moscow Mitch’s desk. Not ONE of those was good for us? Your party is trying really hard to make Biden fail. If the country goes down to remain in power, so be it.
 
Nov 28, 2010
79,055
32,298
113
Maryland
Peak Inflation

The economists predicting “peak inflation” have been right in one sense: Inflation does keep peaking, with Friday’s Labor Department report showing the consumer-price index at a 40-year high of 8.6% on an annual basis. What progressive spending gave to Americans in welfare and new entitlements, it has taken away in a lower standard of living.

Energy and food prices made up much of the May increase, but this is cold comfort for consumers. Americans used to be able to substitute lower-cost protein when beef prices rose. But everything at the supermarket has become more expensive in the past year—eggs (32.2%), chicken (16.6%), milk (15.9%), even soup (13.9%). Lower-wage workers are getting crushed by Bidenomics.

Economists who claimed inflation was transitory and driven by increases in select categories such as used cars are belatedly admitting they were wrong. What else can they do? Prices for some goods have moderated in recent months, but inflation is broadening. That’s why the so-called core inflation index that excludes energy and food is up 6% over the past 12 months and 0.6% from April.

Rents have risen 5.2% over the last year, though housing websites estimate they’re up double digits in most places. Travel has become much more expensive, as hotel (22.2%), airline (37.8%) and restaurant (9%) prices increase. Americans are often paying more for less as businesses scale back services—e.g., no daily room-cleaning—amid labor shortages.

A historically tight labor market has pushed up nominal wages, but worker pay isn’t keeping up with prices. Real average hourly wages have fallen 3% over the last year, with two-thirds of that decline in the last four months.

One lesson is that progressive welfare spending and expanded child-tax credits in the name of aiding workers contributed to inflation that erased the value of those benefits. Workers would be far better off now if Congress hadn’t passed $2.8 trillion in Covid “relief” in late 2020 and early 2021. The federal government has $6.7 trillion more debt than before the pandemic, and inflation isn’t abating.
Once inflation sets in, it acquires its own momentum and isn’t easy to break. The personal savings rate in April fell to 4.4%, the lowest since September 2008, as consumers spend more on almost everything. Inflation has battered consumer economic confidence, and one risk is that it will cause Americans to reduce purchases and slow the economy.

The May inflation report shows how much catching up the Federal Reserve still has to do to reduce inflation. That means higher interest rates, which means greater risks to asset prices and the economy. Markets took a header on Friday, with equities down nearly 3% and the tech-heavy Nasdaq off 3.5%. Has anyone other than green-energy subsidy firms benefited from the Biden economy?

Democrats owe West Virginia Sen. Joe Manchin thanks for saving them from worse inflation had they passed $4.5 trillion in Build Back Better spending. The May report ought to kill BBB’s last desperate vestiges.
Did we really need yet another reminder how awful and childish the WSJ Opinion department is?
 

onlyTheObvious

HR Heisman
Jan 3, 2021
5,931
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Freeze all federal wages except active military. If they leave for a better job in private sector great.

hammer the super rich.
 
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Nov 28, 2010
79,055
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Maryland
I don't understand why rents are higher. Can somebody explain that?

With such good employment rates, is it just that kids are moving out; people who were forced to share abodes are now bidding up the prices?

We ought to be able to look at pre-pandemic rents when unemployment was also low to get a feel for that.
 

Joes Place

HR King
Aug 28, 2003
121,334
113,971
113
Your 2nd sentence is correct. No GOP support ever in what Democrats try to do. 400 bills were on Moscow Mitch’s desk. Not ONE of those was good for us? Your party is trying really hard to make Biden fail. If the country goes down to remain in power, so be it.

Why would they care if "the country goes down in flames" to retain power?

They certainly have shown no concern over whether "democracy goes down in flames" in maintaining control.

They are "consistent".
 

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