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Ireland ‘could default on debt’.
The Sunday Times (UK) ^ | February 15, 2009 | Iain Dey

Posted on 02/15/2009 5:39:41 PM PST by PotatoHeadMick

FEARS are mounting that Ireland could default on its soaring national debt pile, amid continuing worries about its troubled banking sector.

The cost of buying insurance against Irish government bonds rose to record highs on Friday, having almost tripled in a week. Debt-market investors now rank Ireland as the most troubled economy in Europe.

Simon Johnson, the former chief economist of the International Monetary Fund, called for this weekend’s meeting of G7 finance ministers to put Ireland’s troubles at the top of the agenda.

Johnson said: “Don’t, please, tell me more about the basic principles of financial reform unless and until you have addressed the Irish problem. And don’t tell me the Irish have to sort this out for themselves. Eventually, the world always comes to help; check your notes on Iceland.

(Excerpt) Read more at business.timesonline.co.uk ...


TOPICS: Business/Economy; Foreign Affairs; Miscellaneous; News/Current Events
KEYWORDS:
Sadly the once roaring Celtic Tiger is looking a bit moth eaten these days.
1 posted on 02/15/2009 5:39:41 PM PST by PotatoHeadMick
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To: PotatoHeadMick

What the hell happened?


2 posted on 02/15/2009 5:41:34 PM PST by Army Air Corps (Four fried chickens and a coke)
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To: Army Air Corps

I think they went on the Euro.....


3 posted on 02/15/2009 5:45:01 PM PST by Trteamer ( (Eat Meat, Wear Fur, Own Guns, FReep Leftists, Drive an SUV, Drill A.N.W.R., Drill the Gulf, Vote)
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To: PotatoHeadMick
They (Irish) have run out of options. Unlike the US, they cannot fund their obligations in the Markets.

The bigger question is when do the Markets start refusing US borrowing? Or, at what interest rate will they accept them?

IMO we are headed for a day of reckoning. Higher interest rates, Global Inflation and skyrocketing Gold.

4 posted on 02/15/2009 5:45:14 PM PST by TCats
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To: PotatoHeadMick

Sadly, reading the comments indicates that the whole world is in panic mode, including the US.


5 posted on 02/15/2009 5:47:40 PM PST by richardtavor (Pray for the peace of Jerusalem in the name of the G-d of Jacob)
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To: TCats

Is this country going to sell treasuries to pay for the stimulus charade?We may find the answers to your questions pretty quickly.


6 posted on 02/15/2009 5:50:18 PM PST by Farmer Dean (168 grains of instant conflict resolution)
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To: PotatoHeadMick
They need to start selling hard assets like gold reserves or go bankrupt.

In either case, it might be a cheap place to vacation this summer....

7 posted on 02/15/2009 5:51:56 PM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: PotatoHeadMick

Oh...great. Now that the UNSINKABLE Titantic is sinking, the ship S.S.Californian has a fire on board, Arnold needs one more vote and the ship Mt. Temple, Ireland won’t be able to help. NO LIFE rafts are available, and the dogs in the kennel have been opened, no reason for them to die locked up in a cage when the ship goes down. Captain Obama wants to bring more WATER into the hull.


8 posted on 02/15/2009 5:53:20 PM PST by rovenstinez
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To: PotatoHeadMick
Failure To Save East Europe Will Lead To Worldwide Meltdown

The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point.

By Ambrose Evans-Pritchard If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung.

Austria's finance minister Josef Pröll made frantic efforts last week to put together a €150bn rescue for the ex-Soviet bloc. Well he might. His banks have lent €230bn to the region, equal to 70pc of Austria's GDP.

"A failure rate of 10pc would lead to the collapse of the Austrian financial sector," reported Der Standard in Vienna. Unfortunately, that is about to happen.

[snip]

9 posted on 02/15/2009 5:54:41 PM PST by blam
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To: PotatoHeadMick

I thought Ireland was a pillar of prosperity. Did Democrats win a couple of elections there, too?


10 posted on 02/15/2009 5:59:51 PM PST by Past Your Eyes (Some people are too stupid to be ashamed.)
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To: richardtavor
Roubini Tells Geithner To Nationalise US Banks

Tim Geithner must nationalise some of America's biggest banks and take the total toll of the US bail-out to around $2 trillion, according to one of the world's most prominent economists.

By James Quinn Wall Street Correspondent
Last Updated: 1:12AM GMT 16 Feb 2009

Nouriel Roubini – the man feted with having foreseen the financial crisis before almost any of his peers – has warned that the US Treasury Secretary must go significantly further than his detail-light bail-out plan delivered last week, and argues that the Obama administration should move swiftly to take public ownership of those major US banks which are failing.

Professor Roubini, who worked with Mr Geithner in the Clinton administration, told The Daily Telegraph: "Many US banks are insolvent, even the major ones." While nationalisation is "a politically- charged decision" which needs to handled carefully, he said it needs to take place "sooner rather than later" for the sake of the wider economy.

Professor Roubini calculated that, on top of the existing $700bn (£491bn) of American taxpayers' money allocated to solving the banking crisis, Mr Geithner may need to ask the US Congress for between $1,000bn and $1,250bn in extra funds. "Sooner rather than later, they'll need more money," he added.

[snip]

11 posted on 02/15/2009 6:00:23 PM PST by blam
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To: Army Air Corps

As in the US the Irish banks went on a crazy binge of lending to property developers and like all bubbles the Irish property bubble burst, rather spectacularly.

It’s actually worse than that though, there is an unmistakable stench of corruption reeking out of the near collapse of one of the banks, Anglo-Irish, where a golden circle of prominent businessmen and the directors of the bank were lending and re-lending each other sweetheart loans, the horrific scale of which is only now becoming clear (a wee bit too complex to go into in detail).

There is no actual hard evidence of criminality, yet, but the whole thing stinks to high heavens and the Irish people are in a state of shock at the cataclysm that has hit them.


12 posted on 02/15/2009 6:00:49 PM PST by PotatoHeadMick
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To: Farmer Dean
Like any respectable Ponzi Scheme, I expect a good portion of the increased borrowing will find its way to the Fed (i.e., Thinly concealed creation of money). And make no mistake about it, this whole Global Finance thing IS a Ponzi with one exception, the Perps cab actually print money!

Bernie is jealous I'll bet.

13 posted on 02/15/2009 6:03:50 PM PST by TCats
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To: TCats

Check it out come Tuesday morning when the markets got wind of this trillion dollar ‘bonus’ the government just gave itself.

I would not be surprised if we crashed on Tuesday.


14 posted on 02/15/2009 6:08:38 PM PST by autumnraine (Freedom's just another word for nothing left to lose- Kris Kristopherson)
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To: blam
Heilige scheiss! Das ist nicht gut!!!
15 posted on 02/15/2009 6:09:59 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: blam

And here will Sharia Financing come!

Duntduntaduuuuunnhhhh

Here I come to save the day!!

No problem, I’ll loan you some money, but just don’t loan any money for pork or porn!

Need some cash? Sharia Financing offers NO INTEREST! Yes, NO INTEREST! Fees are standard.


16 posted on 02/15/2009 6:11:08 PM PST by autumnraine (Freedom's just another word for nothing left to lose- Kris Kristopherson)
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To: Past Your Eyes

“I thought Ireland was a pillar of prosperity. Did Democrats win a couple of elections there, too?”

Yeah, me too. I thought Ireland was in fairly decent shape? They have the lowest corporate tax rate and a well educated work force.

My company is soon to open a new manufacturing facility there because of the economic advantages.


17 posted on 02/15/2009 6:13:08 PM PST by CapnJack
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To: blam
Nouriel Roubini is a genius. Think of it this way. Banks levered up to 40 to 1. Imagine a game of musical chairs where there are 40 people and only one chair. As long as the music is playing... nobody cares. But when the music stops, the 39 beat the crap out of the poor fool with the chair! Welcome to leveraged fractional banking. There is only 1 dollar for every $40 in debt. Better buy gold (but, can;t tomorrow... we need to celebrate presidents while the REST OF THE WORLD buys gold tomorrow.

Poop!

18 posted on 02/15/2009 6:14:08 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: Past Your Eyes

Apparently, those of us that thought that, were wrong.


19 posted on 02/15/2009 6:15:32 PM PST by stuartcr (If the end doesn't justify the means...why have different means?)
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To: autumnraine
Check it out come Tuesday morning when the markets got wind of this trillion dollar ‘bonus’ the government just gave itself. I would not be surprised if we crashed on Tuesday.

The rest of the world is OPEN tomorrow. I think we will be missing some opportunities to get into gold while the rest of the world scrambles. Gotta celebrate them presidents so the postal workers can practice animation.

20 posted on 02/15/2009 6:16:49 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: LibreOuMort
In either case, it might be a cheap place to vacation this summer....

Tha mi a'smaoineachadh... *\;-)

21 posted on 02/15/2009 6:17:32 PM PST by sionnsar (IranAzadi|5yst3m 0wn3d-it's N0t Y0ur5(SONY)|http://trad-anglican.faithweb.com/|TaglineSpaceForRent)
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To: blam
“...argues that the Obama administration should move swiftly to take public ownership of those major US banks which are failing.”

The moment any of the big banks are nationalized, people and institutions will move their money to these banks and there will be a MASSIVE run on every non-nationalized bank.
Think about it ... would you want your money in a non-gov’t backed bank? And the FDIC is bankrupt, so don't think they will reimburse you for your lost bank accounts.

22 posted on 02/15/2009 6:18:03 PM PST by CapnJack
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To: April Lexington
"Better buy gold (but, can;t tomorrow... we need to celebrate presidents while the REST OF THE WORLD buys gold tomorrow."

I already bought mine. I just bought (friday) 48 more old US silver (90%) dollars for $12.50 each.

23 posted on 02/15/2009 6:18:17 PM PST by blam
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To: CapnJack

Banks are closed tomorrow too.


24 posted on 02/15/2009 6:21:07 PM PST by blam
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To: TCats
Photobucket

http://www.amazon.com/Patriots-Surviving-James-Wesley-Rawles/dp/156384155X

25 posted on 02/15/2009 6:26:15 PM PST by frankiep (Ron Paul was right)
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To: blam

Boden-Kredit Anstalt anyone?????


26 posted on 02/15/2009 6:33:36 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: sionnsar

I think that’s Gaelic for “pass the cabage, we’re broke!”


27 posted on 02/15/2009 6:34:29 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: blam
Think about that! An American dollar for $12.50. Ever wonder why the US mint bothers to put $50.00 on each one-ounce American Eagle coin??? That's the new gold-backed dollar after the Federal Reserve Note is worthless. The gubmint has been preparing for a while now...
28 posted on 02/15/2009 6:36:57 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: PotatoHeadMick

If Ireland defaults....the outhouse bottom will realy hit the fan

Ireland had a growing economy....and they are now in trouble.

Get ready for the new Great Depression, its coming


29 posted on 02/15/2009 6:40:09 PM PST by UCFRoadWarrior (The Biggest Threat To American Soverignty Is Rampant Economic Anti-Americanism)
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To: April Lexington
I think that’s Gaelic for “pass the cabage, we’re broke!”

You are very close! It's actually (Scots) Gaelic for "Let's pass the cabbage, they're broke!"

(Our personal stimulus bill for Eire... *\;^)

30 posted on 02/15/2009 6:41:47 PM PST by sionnsar (IranAzadi|5yst3m 0wn3d-it's N0t Y0ur5(SONY)|http://trad-anglican.faithweb.com/|TaglineSpaceForRent)
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To: sionnsar
Given the Scottish propensity for frugality, I suspect they may have the last laugh! How are the Scottish widows doing these days?
31 posted on 02/15/2009 6:44:34 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: blam

Tim Geithner must nationalise some of America’s biggest banks
////////////////////
before he does that he needs to put their CEOs in jail with Barney Frank and some of his boyfriends.


32 posted on 02/15/2009 6:47:58 PM PST by TomasUSMC ( FIGHT LIKE WW2, FINISH LIKE WW2. FIGHT LIKE NAM, FINISH LIKE NAM)
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To: UCFRoadWarrior

Yes, UCFRoadWarrior, we are in a depression and it will become the greatest the world has seen.

The S&P is likely to see 650 by the 26th of this month and under 200 by the end of September. The die is cast.


33 posted on 02/15/2009 6:50:11 PM PST by northislander
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To: PotatoHeadMick
No big deal.

Argentina defaulted in 2001. Life goes on.

34 posted on 02/15/2009 6:54:15 PM PST by marshmallow ("A country which kills its own children has no future"- Mother Teresa of Calcutta)
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To: TCats

The bigger question is when do the Markets start refusing US borrowing? Or, at what interest rate will they accept them?

prez ZerO will fix it.
just hope and change, oh wait paying our bills would not be change, very confusing this hope and change.
For instance, i hope every rat gets some strange std- but i am not sure that would be change.


35 posted on 02/15/2009 6:54:34 PM PST by genghis
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To: richardtavor

"REMAIN CALM....ALL IS WELL!"

36 posted on 02/15/2009 6:56:33 PM PST by dfwgator (1996 2006 2008 - Good Things Come in Threes)
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To: marshmallow
Argentina defaulted in 2001. Life goes on.

Argentina was tied into the Euro.

37 posted on 02/15/2009 6:57:36 PM PST by Centurion2000 (01-20-2009 : The end of the PAX AMERICANA.)
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To: CapnJack
And the FDIC is bankrupt, so don't think they will reimburse you for your lost bank accounts.

The FDIC is neither more nor less solvent than the federal government as a whole.

38 posted on 02/15/2009 7:18:13 PM PST by meyer (The left is flooding the ship - let's quit bailing water. We are all John Galt.)
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To: meyer

Paper money is dying......no fiat money in the history of the world has ever lasted.......the FRN is next.....prepare.....do not believe our lying political or financial leaders.....prepare for the day after this happens.....when maybe we can return to honest money backed by something other than a wish and a prayer.....prepare


39 posted on 02/15/2009 7:37:05 PM PST by mick (Banker Capitalism is NOT Free Enterprise)
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To: PotatoHeadMick
Ukraine has headed a list of countries, which, according to United Nations economists, could run the risk of default in 2009. The UN experts drew the conclusion in their report entitled "World Economic Situation and Prospects 2009".

According to them, the situation is really difficult in Ukraine. The country dramatically loses the confidence of its investors. Ukraine has become No country in terms of its industrial production decline, inflation growth, devaluated national currency and a stock index fall. The experts predict that Ukraine's economic growth will slow down to 2.1% this year, unemployment rate will double, while inflation will remain unchanged at the level of 2008

Fears are growing that Ireland could default on its national debt after the cost to insure against possible losses on loans to the country rose to record highs at the end of last week.

Credit ratings agency Moody's recently followed rival Standard & Poor's in warning it might downgrade Irish debt, amid fears that one of Europe's former success stories is falling into a deepening recession. The cost to hedge against losses on Irish debt tripled last week to a record 355 basis points - meaning that for every £100 of debt, investors have to pay £3.55 to insure against default, according to data firm CMA Datavision. It was about 262 basis points at the end of January.

Moody's has warned there is a more than 50% chance Ireland will lose its triple A rating within 12 to 18 months.

The spread between Irish and German debt rose last week to 203 points, meaning Ireland has to pay 2% more interest than Germany to borrow in the financial markets because of its perceived higher risk.

http://www.guardian.co.uk/world/2009/feb/16/ireland-debt-recession

Meanwhile, Icelandic interest rates have been catapulted to 15.5 per cent, peaks not seen in Britain since Black Wednesday, in an attempt to rein in inflation. The krona's freefall on the international currency markets is surpassed only by the catastrophic failure of Zimbabwean currency. One of the country's three banks, Glitnir, has been nationalised; another wants money from its customers. Foreign currency is running out as international banks refuse pleas to lend money.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3147866/Financial-crisis-Icelands-dreams-go-up-in-smoke.html
40 posted on 02/15/2009 8:31:12 PM PST by HangnJudge
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To: autumnraine
"Check it out come Tuesday morning when the markets got wind of this trillion dollar ‘bonus’ the government just gave itself."

"I would not be surprised if we crashed on Tuesday."

Lingering Doubts Over Banks Weigh On Asian Stocks

By Kevin Plumberg

HONG KONG, Feb 16 (Reuters) - Asian stocks came under modest pressure on Monday, with dismal economic data and doubts about prospects for the financial industry outstripping investor relief that a U.S. economic stimulus bill had finally passed.

The British pound fell, particularly against the yen, after the Group of Seven rich nations meeting over the weekend passed without public mention of sterling's sharp weakness or the yen's persistent strength.

The yen remained firm despite a report showing Japan's economy shrank by the most since 1974 in the fourth quarter of 2008 compared with the previous three months, weighing on the Nikkei share index. The global economy fell off a cliff at the end of last year, further confirmed after a report last week showed a record contraction in the euro zone economy.

"There is negative sentiment as the U.S. and European financial sectors remain under strain. There is still a fair amount of negative news out there," said Dominic Vaughan, senior dealer at CMC Markets in Australia.

[snip]

41 posted on 02/15/2009 9:02:42 PM PST by blam
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To: April Lexington

Actually if Scotland were an independent nation now she’d be utterly bankrupt, the myth of the canny Scot is just that, a myth.

The UK’s economy has been wrecked by the actions of two Scottish banks, Royal Bank of Scotland and the Bank of Scotland both of whom have been bailed out by the UK central government to the tune of tens of billions of pounds. No surprise that this bailout by the Prime Minister, a Scot, and his Chancellor, another Scot has been met with dismay by the vast majority of English taxpayers who actually keep the UK afloat.

If Scotland had been independent it would be in a worse state than Iceland, a nation which, like the other basket case, Ireland the Scottish Nationalists wished to emulate.

Expect to hear very little about Scottish independence for the next couple of decades or so.


42 posted on 02/16/2009 4:00:49 AM PST by PotatoHeadMick
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To: blam

Thanks for that. I had a bad feeling. And being that we opened on Tuesday doesn’t bode well either because everyone is afraid to jump in the water first. And without our own markets to lead in confidence in this package, others are going to lag. If other’s lag, ours are going to be leary.


43 posted on 02/16/2009 4:07:01 AM PST by autumnraine (Freedom's just another word for nothing left to lose- Kris Kristopherson)
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To: autumnraine
European Shares Down In Thin Trade; Banks Fall

Mon Feb 16, 2009 7:08am EST
By Brian Gorman

LONDON, Feb 16 (Reuters) - European shares fell at midday on Monday in thin trading, after Japan's economy shrank at its fastest rate since 1974, with financial stocks suffering amid concern over losses and the potential need for more government bailouts.

At 1147 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.6 percent at 791.82 points. It fell 3.6 percent last week.

In the latest reaffirmation of the global downturn, Japan's economy shrank by 3.3 percent in the fourth quarter, marking three straight quarters of contraction and its worst result since the 1974 oil crisis, with demand for cars and electronics waning amid an unprecedented slump in exports.

[snip]

44 posted on 02/16/2009 5:29:43 AM PST by blam
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To: Past Your Eyes

they can always tax the heck out of the rich and all of the american companies that are moving there. That will fix it. yeah


45 posted on 02/16/2009 3:52:42 PM PST by virgil
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To: PotatoHeadMick
It seems this new breed of MBA trained "bankers" has destroyed the ancient banking culture of prudence and caution in its relentless money dance. Credit to only the most credit worthy. These bums have raped the world...

Where did the model break down? Who approved all of these crazy loans and investments ("assets") in bogus CDOs? Where were the regulators and bank examiners? This is the biggest global bank meltdown in history. How could they all think alike?

46 posted on 02/17/2009 7:34:15 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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