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Guest Post: Why Is Gasoline Consumption Tanking?
Zero Hedge ^ | 02/10/2012 | Tyler Durden

Posted on 04/03/2012 7:50:20 AM PDT by Mechanicos

Retail gasoline deliveries, already well below 1980 levels, have absolutely fallen off a cliff.

....

Deliveries in November 2011 were 30.9 MGD, a staggering 47% decline.

.....

What other plausible explanation is there for the decline from 42.4 MGD in July 2011 to 30.9 MGD in November 2011 other than a dramatic decline in discretionary driving? That 27% drop in a few months in unprecedented, except in times of war or sharp economic contraction, i.e. recession.

(Excerpt) Read more at zerohedge.com ...


TOPICS: Extended News; Front Page News; Government; News/Current Events
KEYWORDS: depression; economy; gasoline; government
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To: Mechanicos

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51 posted on 04/03/2012 9:10:02 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: lula; Thane_Banquo

Yes, but if consumption is down, then supply should be up. And if supply is up, then price should be dropping.

Hmmmmm.....

O’Reilly says the supply is constricted because refined gasoline is being shipped to China.

So, we hypothesize that the world demand and or supply is down while a US localized supply went up due to less consumption.


52 posted on 04/03/2012 9:13:24 AM PDT by xzins (Retired Army Chaplain and Proud of It! Pray Continued Victory for our Troops Still in Afghan!)
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To: Mechanicos

Yet the cost still goes up........


53 posted on 04/03/2012 9:13:30 AM PDT by Eagle of Liberty (We the People are coming!!)
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To: dirtboy

What, they built oil fired power plants or is the country running on generators, lol?

“Necessity” commodities are in a speculative bubble again just as in 2008. So is corn.

Short the living crap out of the greedy b-tards.


54 posted on 04/03/2012 9:13:37 AM PDT by RegulatorCountry
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To: Mechanicos
Why Is Gasoline Consumption Tanking?

Boy this is complex....

Lets see, the price of everything has doubled, food, fuel, etc, millions of private sector Americans are jobless, hours cuts, benefits eliminated, millions lost their homes, lost businesses, retirements/savings decimated...

And ya can't figure out why people are driving less?

lol..

55 posted on 04/03/2012 9:13:44 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: RegulatorCountry
What, they built oil fired power plants or is the country running on generators, lol?

I would imagine they are running their peak generators around the clock instead of just at peak consumption.

I agree there is a speculative bubble again. But there also is an oil demand factor here to offset much of the drop in US gasoline consumption.

56 posted on 04/03/2012 9:16:32 AM PDT by dirtboy
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To: Thane_Banquo

It’s amazing how little people understand this. Especially in the MSM.


57 posted on 04/03/2012 9:30:37 AM PDT by WKUHilltopper (And yet...we continue to tolerate this crap...)
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To: dirtboy

It’s a world-wide fungible market, and world demand for oil is soaring, due to China (now the leading manufacturer of autos), India, Brazil and other developing nations. Supply-and-Demand analysis needs to include within its scope the entire global market.


58 posted on 04/03/2012 9:37:49 AM PDT by cookcounty (Newt 2012: ---> Because he got it DONE.)
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To: Mechanicos

“...decline in discretionary driving”

It ain’t rocket science. The higher cost of gas amounts to a pay cut for people who are employed.

It is for me. Anyway, even IF I still drove as far and as often as before ... I wouldn’t have any money to spend once I got there!!! :)

So we stay put, hang on to our money and wait for the other shoe to drop!


59 posted on 04/03/2012 9:40:16 AM PDT by SMARTY ("The man who has no inner-life is a slave to his surroundings. "Henri Frederic Amiel)
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To: running_dog_lackey
People use a lot less gas when they don’t have to drive to work anymore.

And they don't have to use gas job-hunting. That's all done on the internet.

60 posted on 04/03/2012 9:42:03 AM PDT by Drew68
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To: Mechanicos

I’m doing my best to keep gas consumption up. I have an 82 mile commute to work every day. That’s each way.

I can get 40 MPG out of my Mazda 2, but once it hits $5 a gallon, I’ll be looking for a room/apartment to spend the week nights at.


61 posted on 04/03/2012 9:42:07 AM PDT by Jotmo (Whoever said, "The pen is mightier than the sword." has clearly never been stabbed to death.)
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To: cookcounty
It’s a world-wide fungible market, and world demand for oil is soaring, due to China (now the leading manufacturer of autos), India, Brazil and other developing nations. Supply-and-Demand analysis needs to include within its scope the entire global market.

Please show where global demand is soaring over the last year. Please show where oil demand over the last few months in the countries you mentioned is soaring.

We were told in 2008 that Asian oil demand was soaring. It wasn't. Which is why the bubble popped.

62 posted on 04/03/2012 9:45:08 AM PDT by dirtboy
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To: dirtboy

If you’re into oil stocks, now would be a great time to sell - Barry O isn’t going to be able to keep funding his deficits. When that happens, we should start to see deflation again as we saw in 2008.

The only reason why gas is going up and the dollar is worth less, is because of how much he is devaluing the dollar vs commodities.


63 posted on 04/03/2012 10:01:56 AM PDT by JCBreckenridge
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To: Mechanicos

There are 50 million Americans on food stamps.

It’s not that complicated.


64 posted on 04/03/2012 10:05:29 AM PDT by <1/1,000,000th%
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To: Mechanicos

Why Is Gasoline Consumption Tanking?

Because many things can be done online now.
Because if it takes all your party money for gas, no sense going anywhere to party.
Because people will buy MORE of something at a LOW PRICE, and LESS of something at MORE of a PRICE.

Because we are getting screwed in the behind by Commies and Homos who don’t even know where the filler nozzle is on the gas tank of the government vehicles they are chauffeured around in, on their way to accept the Pulitzer Prize.


65 posted on 04/03/2012 10:09:54 AM PDT by UCANSEE2 (Lame and ill-informed post)
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To: Bud Krieger

We have three vehicles, a Ford Focus, a Nissan Titan, and a 69 VW beetle. Guess which one now spends the most time in the driveway?

You guessed it, the Titan. At 13 MPG I can no longer afford to drive it unless I need a truck. The VW, my project car and my baby, is now my daily driver.

I won’t even talk about how the boat will probably not leave the yard this summer.


66 posted on 04/03/2012 10:10:40 AM PDT by fredhead (It's my Herbie year...check out the number on the side of the famous VW.)
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To: Buckeye McFrog
And from there, it’s only a short hop and a jump to the modern Leftist’s argument that “Capitalism has ceased to function, and it’s time it be replaced with something else”.

The Leftists make this argument because they BELIEVE that the 'something else' is THEMSELVES.

They are only the ENABLERS of the 'invasion' (by socialists/marxists/communists). During the 'normalization' phase of the invasion, these enablers will be purged. The NEW ORDER cannot trust them. After all, they turned against their own once already. They have proved they cannot be loyal.

67 posted on 04/03/2012 10:18:13 AM PDT by UCANSEE2 (Lame and ill-informed post)
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To: xzins
And if supply is up, then price should be dropping.

A statement that "the supply curve shifted up and to the left," doesn't indicate an increase in supply, but a decrease. It means that, at every possible price point, producers will respond by producing less gas at that point than they did before the curve shifted.

68 posted on 04/03/2012 10:21:12 AM PDT by Thane_Banquo (Support hate crime laws: Because some victims are more equal than others.)
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To: Buckeye McFrog

Leftists are also blind to the fact that Capitalism is the RULE around the world. ALL COUNTRIES participate in the capitalistic market. ALL.

The difference between THEM and US is that all citizens here are allowed to participate/profit in the procedure. In communist/socialist/dictator governments, only the ‘elite’ are allowed to participate/profit.


69 posted on 04/03/2012 10:24:06 AM PDT by UCANSEE2 (Lame and ill-informed post)
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To: dirtboy
I finally saw something that made sense as to why the price of oil is going up - namely, that Japan has just about all of their nukes shut down post-earthquake and has to buy oil to make up for much of the lost electrical generation capacity.

Add to that the fact that China is rapidly increasing it's import of basic fuels and oils, due to it's growing population and personally owned vehicles. Not to mention the fuel used to build all those dams.

70 posted on 04/03/2012 10:31:26 AM PDT by UCANSEE2 (Lame and ill-informed post)
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To: Thane_Banquo
A decrease in quantity consumed that occurs at the same time as an increase in prices (gas prices have risen), is easily attributable to a decrease in supply.

Is there a decrease in supply?

71 posted on 04/03/2012 10:36:48 AM PDT by UCANSEE2 (Lame and ill-informed post)
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To: UCANSEE2; dirtboy
In the past 6 weeks, these are just some of the reasons/excuses gas prices are quite suddenly burning up your income.

________________________________________________________

Iran is going to take over the world.

The refineries need maintenance

The speculators are doing it

We're running out of oil

We have plenty

Americans are driving less, so we need to raise prices

The Chinese have millions of mopeds to fuel

There is a leak in a pipe in Moose Jaw Alaska

A rodent chewed through a line at the main pump station in Texas.

Demand is down but we are producing more however, our refineries have been and are being shut down

Prices will go to 6.75, but 3 days before the election, Obama will lower prices to 1.40 to ensure reelection

A school of endangered blowfish have been sucked into a pipe, and it takes time to get them out.

Iran has nukes

Unstable markets worldwide.

A big refinery fire

A small refinery fire

A refinery fire could possibly happen

New gas additives are being developed to make Americans even more stupid

They forgot to build a pipe

They don’t like pipes

Rich liberals want the price even higher.

Obama hates the oil industry

The oil industry hates Obama and are hoping this kills his reelection

Liberals want everyone ridding donkeys and bicycles to work as a sacrifice for the planet

We moved more armaments to the gulf because Iran is taking over the world

Wild money printing and massive deficits

Americans love high gas prices

Refinery margins are tight…They hardly make any money at all.

The masses have no idea how free market works.

It is being exported because we are making more than we use.

Demand has fallen

We need refinery upgrades and expansion

We are making more than we use so we have to sell it to the Chinese, (They have 1 billion mopeds to fuel , and need to go to work so they can send us more Communist products .

We have plenty of oil, so much so, we need to sell it abroad to keep prices low.

We have plenty of oil, so much so, we need to sell it abroad to keep prices high.

Barry intentionally pissed off the oil companies and seriously limited their profit

The population has increased

The less people drive the higher the price, so you need to drive more.

This is caused by warm weather.

It’s caused by cold weather.

We are importing less crude oil and even become an exporter of refined products.

High gas prices have creates jobs and wealth in the US, so we need to export more oil.

High gas prices are good for the economy. When it reaches $6 per gallon, America will be back on track.

We're using less fuel, so they have to increase the prices.

72 posted on 04/03/2012 10:38:17 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: cookcounty; dirtboy
Supply-and-Demand analysis needs to include within its scope the entire global market.

Yeah, but that wouldn't help the Democrats and MSM (I know that's redundant) blame the Republicans for the high cost of gas.

73 posted on 04/03/2012 10:49:30 AM PDT by UCANSEE2 (Lame and ill-informed post)
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To: Buckeye McFrog; All
The general public will look at this vs. the skyrocketing cost of gas, and come to the conclusion that the Law of Supply and Demand is not working anymore.

I read a while back that we're exporting as much gasoline as we consume. If we keep it here, wouldn't this roughly cut the price by anywhere from 30% to 50%?

Here is a excerpt from the link below indicating what this terrible government intend to do:

Compared to a year ago, exports of gasoline have tripled – at a time when the price of gasoline is 42 cents a gallon more expensive at the pump.

http://www.csmonitor.com/USA/2012/0223/As-gas-prices-rise-should-US-oil-industry-stop-exporting

74 posted on 04/03/2012 10:55:57 AM PDT by melancholy (Professor Alinsky, Enslavement Specialist, Ph.D in L0w and H0lder)
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To: dragnet2

Excellent compilation.

Some of those excuses have been in use for a long time, and not just relating to oil/gas.


75 posted on 04/03/2012 11:00:29 AM PDT by UCANSEE2 (Lame and ill-informed post)
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To: Oldexpat

I would love to see registration and sales figures for these small cars. Have we seen a increase, yes. I doubt it is enough to cause this decrease. I believe the economy is the primary reason.


76 posted on 04/03/2012 11:20:04 AM PDT by matt04
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To: Thane_Banquo

Also, Demand is Global, so when Chinese and Indian people get their first motorcycle or car, they contribute to total global Demand, shifting that curf up and right.

That’s a price increase based on a Demand increase, even if the U.S. consumes less.


77 posted on 04/03/2012 11:34:13 AM PDT by Uncle Miltie (FOCUS ON FACTS: 0bamaCare Hated. Worst Recovery. Failed Stimulus. Worst Deficits.)
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To: rawcatslyentist

Creating inventory shortages for the Summer blend


78 posted on 04/03/2012 11:34:42 AM PDT by colonialhk (Put them in green jails doing green jobs)
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To: Mechanicos

Um…nobody has jobs to drive to. No money to drive to shopping centers and restaurants. People are skipping kid’s activities because it’s too expensive to get them there. At this rate, it’s going to be hard to avoid a deflationary spiral despite the inflation the high fuel prices and money printing is working to cause.


79 posted on 04/03/2012 11:59:07 AM PDT by riri (Plannedopolis-look it up. It's how the elites plan for US to live.)
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To: kabar

Young lib douchebags living in downtown lofts.


80 posted on 04/03/2012 12:50:31 PM PDT by steve8714 (The answer, surprisingly, is Carnahan.)
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To: Mechanicos

Gas demand down? I think I know the answer, more yoots staying home playing video games instead of looking for jobs?


81 posted on 04/03/2012 2:04:29 PM PDT by Bringbackthedraft ( WHO WE ELECT AS PRESIDENT IS NOT AS IMPORTANT AS WHO THEY APPOINT.)
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To: Thane_Banquo; dirtboy
A decrease in quantity consumed that occurs at the same time as an increase in prices (gas prices have risen), is easily attributable to a decrease in supply. I.E. the supply curve has moved up and to the left:
Japan has just about all of their nukes shut down post-earthquake and has to buy oil to make up for much of the lost electrical generation capacity.

11 posted on April 3, 2012 11:01:33 AM EDT by dirtboy

Maybe, globally, the demand didn’t drop . . .

82 posted on 04/03/2012 2:49:00 PM PDT by conservatism_IS_compassion (The idea around which “liberalism" coheres is that NOTHING actually matters except PR.)
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To: Buckeye McFrog

It doesn’t help that the President of the United States is out there with remarks that prove once more that he is no more than a demagogue.


83 posted on 04/03/2012 2:49:47 PM PDT by RobbyS (Christus rex.)
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To: running_dog_lackey

Yes the unemployed and those of us who decided to retire rather than beat our brains out looking for work, drive a whole heck of a lot less than the working public.

Got no place to go and can’t afford these high gas prices anyway.


84 posted on 04/03/2012 3:00:11 PM PDT by SusaninOhio
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To: Mechanicos

Well over 15 million people are NOT employed!!! When one counts the self-employed who cannot file for unemployment—that number is even higher.

They are NOT commuting to ANY job!!!

This is a third grade question, with a 2nd grade answer!!!

Another example of how stupid the media really is, along with every member of the Kenyan’s administration!!!


85 posted on 04/03/2012 3:08:53 PM PDT by ridesthemiles
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To: Buckeye McFrog; Fee

Fee is right about the dollar. Next time someone cries about capitalism inform them of the weakened dollar, and the resulting fuel prices—the part of the equation they didn’t see when they thought only the rich would pay for Obama’s spending plans. They’re paying for it now... we all are.


86 posted on 04/03/2012 3:14:24 PM PDT by CommieCutter
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To: Mechanicos

NOT even seasonally adjusted? Well, then, this is all crap and clap trap. People drive more in summer in the best and the worst of times. Furthermore, consumer driving is not what leads in fuel consumption, but commercial deliveries and airlines. That’s why turning your thermostat down in winter or your lights off during earth hour never has an impact on anything. Trucks, factories and airplanes are what drive the economy.


87 posted on 04/03/2012 3:29:57 PM PDT by Eleutheria5 (End the occupation. Annex today.)
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To: Buckeye McFrog

Speaking of six-packs, have you checked out the prices of decent beers lately? I paid $9 for a six-pack of Blue Moon last weekend.


88 posted on 04/03/2012 3:59:26 PM PDT by Excellence (9/11 was an act of faith.)
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To: Mechanicos

Country getting older. Older people drive less.


89 posted on 04/03/2012 4:52:20 PM PDT by Diggity
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To: exit82

People keep buying foriegn made products. You think the U.S. can survive if we don’t produce anything but debt? We are living on debt so we can buy China made products and Asian products. We are losing the ability to manufacture high tech products like the kindle , smart phones, pcs etc.


90 posted on 04/03/2012 5:04:03 PM PDT by rurgan (Make all laws have an expiration date of 3 years. too many laws is the problem)
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To: Mechanicos

The liberal argument of capitalism run amok simply does not work. If you want to see the price of oil, price it in gold.. same for the stock market. It is really an eye- opener to see things priced in a stable currency. I wonder if there is another country with stable prices to compare too? So far, all I see is gold.


91 posted on 04/03/2012 5:23:56 PM PDT by momincombatboots (Back to West by G-d Virginia.)
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To: Mechanicos

Waiting for the reinstatement of the 55 speed limit.

That’s Obunghole’s next trick.


92 posted on 04/03/2012 6:20:09 PM PDT by Ouderkirk (Democrats...the party of Slavery, Segregation, Sodomy, and Sedition)
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To: Mechanicos

So I have to wonder is there a corresponding loss of tax revenue to go along with these figures?


93 posted on 04/03/2012 8:08:54 PM PDT by snuffy smiff (Socialism is the philosophy of failure, the creed of ignorance, and the gospel of envy.)
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To: Thane_Banquo
Buying gasoline is not all that optional in the United States - it's not flexible demand.

In Europe, perhaps, but they don't have to deal with the distances that most American commuters must deal with.

94 posted on 04/03/2012 8:48:53 PM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: snuffy smiff

So I have to wonder is there a corresponding loss of tax revenue to go along with these figures?


Yes. It’s okay though, we can spend today and let our children pay for it tomorrow.... as long as the interest on that debt stays low, the economy continues to chug along, the dollar remains the world currency, and banks remain solvent.

Nothing to worry about...... /s


95 posted on 04/03/2012 8:58:27 PM PDT by volunbeer (Don't worry America, our kids can pay for it!)
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To: snuffy smiff

So I have to wonder is there a corresponding loss of tax revenue to go along with these figures?


Yes. It’s okay though, we can spend today and let our children pay for it tomorrow.... as long as the interest on that debt stays low, the economy continues to chug along, the dollar remains the world currency, we get control of our national deficits and government spending, and banks remain solvent.

Nothing to worry about...... /s


96 posted on 04/03/2012 8:59:58 PM PDT by volunbeer (Don't worry America, our kids can pay for it!)
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To: Thane_Banquo
No no.. please don't correct them on facts. It has nothing to do with refineries closing. It has nothing to do with a global gasoline market that has us sending millions of gallons to other countries.

Gasoline has become as much of a global market as Oil itself.

97 posted on 04/03/2012 9:36:39 PM PDT by Almondjoy
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To: matt04

Have we seen a increase, yes. I doubt it is enough to cause this decrease.

It’s funny how that works. People that can’t afford another buck a gallon also can’t afford a new car.


98 posted on 04/04/2012 4:11:17 AM PDT by freedomfiter2 (Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
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To: Mechanicos

These number are music to their ears. They do NOT want a mobile population. Restrict us to localities and control the population there. Agenda 21 !


99 posted on 04/07/2012 9:55:57 AM PDT by Waywardson (Carry on! Nothing equals the splendor!)
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