Complete Whimsy, Individual v. Collective, Live and Learn

Musicnomics Part II: Decline and Fall

So a while back I wrote an article about the wacky world of music where talent is ignored in favor of prepackaged, overproduced tweenie heart throbs and beauty queens who have little discernible talent other than a voice that would typically rank around 7 to 8 on a scale from 1 to 10. I have a friend who’s in a very good band called The Hoons. Quite a few have commented that they should be famous or that they will soon become famous… You know, when people realize they’re really good. Unfortunately, since being good is not a qualifier for musical fame, I would hesitate to make such predictions.

The problem is this; people really like music and thereby many will dedicate themselves to it even if the odds of financial windfall are small. Who wouldn’t rather be a musician than say, an insurance salesmen? Thus, there are a lot of really talented musicians and bands out there and they get lost in a sea of other music. The market is over saturated. Whereas there is probably plenty of room for improvement regarding the talent of insurance salesmen.  This may have not been the case in the past as much, but it certainly is now. People can only keep so many bands in their heads at any given time. Dunbar’s number dictates human beings can only conceptualize something like 150 people as friends or acquaintances of note. Everyone else is a number. I suspect our tolerance for musicians and bands is substantially smaller.

Record companies know this, so they’re not really selling music, they’re selling a brand. Why do you think every movie that comes out today is a remake/reboot/reimagining/sequel/spinoff/prequel or adaption of a TV show, video game or at least a book (which seems to be becoming more and more rare). The established brand helps guarantee that the $100 million or so the studio dumps into filming our 2 hours of escapism will come to the top of the enormous mound of garbage begging for our attention (and money). And so it goes with music, just make a smaller investment up front and try to sell a charismatic and attractive “musician” who can technically sing and maybe dance a little. Then sell them songs written by someone else (or something else) that have been scientifically tested to be as catchy (and empty) as possible. While the songs are often overproduced, they are also simple, with very few and very predictable chord changes. This makes them easy to dance to, sing along with and get caught in the head. Throw all that together with said “artist” and boom, a famous musician is born… or probably more accurately designed, tested, manufactured and marketed.

This all makes me rather sad. But at least I could console myself that we had so much music at our disposal anyone could dig through and find stuff that is actually of quality. The production side may be an upside down mess, but the consumption side is an oyster or smorgasbord or something like that.

Then I had a recent conversation with my guitar teacher (who is very good musician, and of course, not famous). He mentioned that in Mozart’s day, he was well known for his operas no his symphonies. At the time, operas were the music of the masses. Lawrence Edelson describes it as follows:

The opera house was the first musical institution to open its doors to the general public. The first opera house was opened in Venice in 1637, presenting commercial opera and run for profit!  …It offered new entertainment to anyone who could afford a ticket.  By the end of the seventeenth century, Venice had sixteen opera houses open to the general public. [Bold in original]

Can you imagine Joe Shmoe or some trailer park rednecks going to the opera today? Or maybe some wanksta’s: “Yo Homie, let’s get hella faded and then catch some Pavarotti up in this hizzie!” Sorry, I digress. Sure, it’s great that the masses had a form of entertainment available to them they hadn’t previously had. Indeed, Edelson notes the [positive] change that was starting to take off in the early to mid 1800’s, “During the first half of the nineteenth century, “new forms of popular culture were developing as the industrial revolution generated the two preconditions for mass entertainment: mass production and a mass audience. “

That is great. The problem, is that today opera is considered the music of the snobby elite. It’s classy music meant for a more sophisticated audience. So opera went from being a music for the general public, to a music for the elite. My guitar teacher is convinced this is the trend throughout time, and unfortunately, he’s probably right.

Jazz and blues’s were both considered to be the music of “bars and brothels” during the early 20th century. Now they’re classic. The Beatles made mindless, pop music, now they’re the epitome of classic rock and hugely respected as musicians. And I should note, while I do like the Beatles, the simplicity of their songs and the ease with which they are too play, is rather astounding.

OK fine, I like blues and jazz and the Beatles are OK. And I don’t particularly like opera. In fact, I don’t like it at all. But look where this trend is going! Liberals may worry about leaving a wrecked planet to their children (or maybe I should say child…) and conservatives worry about leaving a massive debt. But we can both agree we shouldn’t be leaving Katy Perry and Justin Bieber to our children… dammit, too late… to our children’s children. They’re popularity should die with us.

Unfortunately, it seems we are intent on justifying our hormonally influenced adolescent musical preferences in adulthood by giving such pop music the “classic” label. And with the way this trend is going, it appears that the likes of Britney Spears and Ludacris will become the “classic” music of the next generation. Hell, today their stuff is already turned into symphony arrangements for college marching bands to make fools of themselves with. It’s just a matter of time. Hence a generation more and Beyonce and T Pain will become the operas of the 21st century. Snotty elites will pontificate about the important matters of the day while embracing the deep themes of how “I kissed a girl and I liked it.”

Or maybe they’ll all just go the way of New Kids on the Block… hopefully.

Or maybe it’s just too much to risk and it would be better if robots just took over.

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Economic Lies, Damned Lies and Statistics… THE BOOK!

Economic Lies Damned Lies and Statistics

My dear SwiftEconomics readers, I have put together a book out of my Economic Lies, Damned Lies and Statistics series as well as some brand new material! It is now out in both ebook and hard copy form (well, a hard copy with a soft cover that is).

The book debunks common economic fallacies such as income stagnation, the male-female wage gap and the myth that college degrees are worth one million dollars. It also takes on some non-economic matters like the BMI and the statistics about Iraq War casualties.

The ebook is only 99 cents, and for $9.99, you can have the hard copy. Remember, reading books is good for you:

To Buy the Ebook, click here: Economic Lies, Damned Lies and Statistics

To Buy the hard copy, click here: Economic Lies, Damned Lies and Statistics

Thank you for supporting the work we do, I hope you enjoy.

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Complete Whimsy, Dubiously Free Trade, Hayek, Live and Learn

How Economics Became the “Dismal Science”

If you’re an economics geek like myself (or even if just interests you a bit) you’ve probably heard it referred to as the ‘dismal science.’ I always figured it had something to do with the fact that economics lies in the gray area between the social and natural sciences. As F.A. Hayek put it:

It seems to me that this failure of the economists to guide policy more successfully is closely connected with their propensity to imitate as closely as possible the procedures of the brilliantly successful physical sciences – an attempt which in our field may lead to outright error. It is an approach which has come to be described as the “scientistic” attitude – an attitude which, as I defined it some thirty years ago, “is decidedly unscientific in the true sense of the word, since it involves a mechanical and uncritical application of habits of thought to fields different from those in which they have been formed.”

However, the saying is really more negative in connotation toward the entire profession than noting a flawed approach to it. To me, it’s sort of reminiscent to the “bourgeois economists” Marx denounced.

Well, it turns out the first use of the term was by Thomas Carlyle in 1849, which is as follows:

Truly, my philanthropic friends, Exeter Hall Philanthropy is wonderful; and the Social Science—not a “gay science,” but a rueful [one]—which finds the secret of this universe in “supply-and-demand,” and reduces the duty of human governors to that of letting men alone, is also wonderful. Not a “gay science,” I should say, like some we have heard of; no, a dreary, desolate, and indeed quite abject and distressing one; what we might call, by way of eminence, the dismal science. These two, Exeter Hall Philanthropy and the Dismal Science, led by any sacred cause of Black Emancipation, or the like, to fall in love and make a wedding of it,—will give birth to progenies and prodigies; dark extensive moon-calves, unnameable abortions, wide-coiled monstrosities, such as the world has not seen hitherto!

Yes, Thomas Carlyle was decrying the fact that classically liberal economists opposed slavery! The quote comes from Occasional Discourse on the Negro Question which Carlyle wrote arguing for the reintroduction of slavery in the West Indies to better ‘regulate society.’ How wonderful.

This helps elucidate the great myth that the supporters of capitalism, so called, during the 17th, 18th and 19th centuries were reactionaries who, well they obviously supported slavery and other such oppression. What’s left out is that there was no word ‘capitalism’ back then. Capitalism is a term coined by Marxists. What a supporter of limited, decentralized government, free markets and personal liberty was called back then were a liberal (it’s now called classical liberalism). And they were quite radical reformers of their time.

The great classical liberals; Locke, Smith, Jefferson, Paine, Ricardo, Wilberforce, Hume, etc. may have been hypocritical at times, but philosophically they all opposed slavery and supported limited government and free markets (although not necessarily corporations).

What they opposed was mercantilism and monarchy; basically government/corporate collusion and aristocratic privilege. They supported freedom and liberty. And they were opposed for this radical idea by the defenders of the divine right of the Kings and Great Man Theories of history acolytes such as Thomas Carlyle.

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Complete Whimsy

Sh*t Economists Say

So I ran across this amateur YouTube video inspired by the Sh*t Girls Say video the other day. I found it relatively amusing and in my judgement, worth reposting on an economics site:

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Top Ten Economics Top Ten Lists

Swift Economics takes pride in providing a resource to find all the knowledge on economics you’ll ever need to know. The following ten lists have just about every resource you could imagine. Enjoy:

 

List 10: Top Ten Economics Blogs

List 9: Top Ten Economics Websites

List 8: Top Ten Economics Podcasts/Youtube Channels

List 7: Top Ten Free Economics Ebooks

List 6: Top Ten Basic Economics Books

List 5: Top Ten Advanced Economics Books

List 4: Top Ten University Economics’ Departments

List 3: Top Ten Economists

List 2: Top Ten Economics Debates

List 1: Top Ten Economics Documentaries

 

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Top Ten Economists

A top ten list of economists always depends on criteria. So here I use a combination of my beliefs, their credentials and the impact they had on economic thought:

10. Murray Rothbard

The founder of anarcho-capitalism and inspiration to presidential candidate Ron Paul formulated much of the Austrian theory especially with regards to the Great Depression and the American experience.

9. Paul Samuelson

There is probably no one more responsible for the rise of econometrics and turning economics into a mathematical science. Whether or not that is a good thing, I’ll leave to the reader, but his contribution needs to be noted nonetheless.

8. Henry Hazlitt

The man who wrote the best introduction to economics ever written as well as the best critique of Keynesian economics needs a place on this list.

7. John Maynard Keynes

Regardless of Hazlitt’s critique, Keynes has had an undeniable impact on economic thought and thereby deserves a place on this list.

6. Thomas Sowell

This guy seems to publish a book every year and yet maintain an extremely high level of quality. There are few better at debunking economic myths and explaining economics then professor Sowell.

5. Ludwig von Mises

The leader of the Austrian school wrote seminal critiques of fascism, socialism and the mixed economy, and laid down the framework for the Austrian theory of the business cycle.

4. Richard Cantillon

While Adam Smith is known as the founder of economics, Richard Cantillon was explaining how a market economy worked 5o years earlier.

3. Milton Friedman

Milton Friedman’s reputation took off when he predicted the stagflation of the 1970’s, then he won the 1976 Nobel Prize. His work inspired the “Reagan Revolution” (although very little of what he actually wanted was enacted). One of the most influential economists of the 20th century.

2. F. A. Hayek

While his political thought has probably been more influential (think The Road to Serfdom) his economic work should not be overlooked, after all, he won the 1974 Nobel Prize for his work on the Austrian theory of the Business Cycle.

1. Adam Smith

Perhaps his reputation of the “founder of modern economics” is hyperbole, but his work laid the groundwork for the fall of mercantilism and the rise of capitalism in the West which helped bring on the Industrial Revolution and the unparalleled prosperity we have today.

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Honorable Mentions:

Joseph Schumpeter

A great economist, who’s work on capitalism, socialism, democracy and corporatism is truly thought provoking.

Peter Bauer

The man who stood up to the statists on third world development. Today he’s finally starting to be recognized for his prescience.

Dean Baker

A Keynesian economist who’s work on corporate welfare and intellectual property is well worth a look.

David Ricardo

Another one of the great 18th century economists who helped laid the intellectual frameworks for market economics.

Robert Higgs

Higgs has devastated the myth that World War II got the United States out of the Depression and has done much to expose the corruption behind the military-industrial complex.

Karl Marx

While I think his work has been thoroughly debunked by both theory and history, he had an enormous and continuing effect on economic thought.

Henry George

Henry George is an interesting figure who basically took some socialism and capitalism and mixed them together, but without having them overlap. In George’s thought, all land should be owned in common, but products of labor should be owned privately. He provides a unique and thought-provoking way to look at economics.

Frank Knight

The influential founder of the Chicago school of economics.

John Kenneth Galbraith

One of the most famous Keynesian economists of the 20th century.

Anna Schwartz

Milton Friedman’s partner on the Monetary History of the United States. A great economist in her own right as well.

Jean-Baptise Say

Another great economist from the good, old days who formulated “Say’s law.”

Joseph Stiglitz

One of the most influential Keynesians of today who gained a reputation for his merited criticisms of the IMF, WTO and World Bank.

Niall Ferguson

A fantastic economic historian who, by the way, makes fantastic documentaries.

 

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Top Ten Advanced Economics Books

As I stated in my list on basic economics books, these lists are difficult. If I only chose my personal favorites, the list would be a little one-sided (Keynes and Marx certainly wouldn’t be on the list). So I tried to judge these books on my personal judgement, their overall reputation and their affect on general thought. Regardless, reading this list will put you in elite company as far as economics is concerned:

 

10. Man, Economy and State – Murray Rothbard

Murray Rothbard’s magnum opus lays out the case for complete laissez-faire, so laissez-faire in fact that the entire government would be abolished; i.e. anarcho-capitalism.

 

 

 

 

9. Das Kapital – Karl Marx

The seminal, three volume work of the most famous communist of all-time. OK, I think this book is nonsense, but it’s very important as far as intellectual history is concerned, especially with regards to economics.

 

8. Socialism – Ludwig von Mises

The book that turned F.A. Hayek into a supporter of the free market. Ludwig von Mises takes a sledgehammer to Karl Marx and every other socialist, showing that economic calculation is all but impossible in socialist economies.

 

 

 

7. A Treatise on Political Economy – Jean Baptise Say

One of the classics in economics thought, Jean Baptise Say lays out “Say’s Law” or that “production of commodities creates, and is the one and universal cause which creates a market for the commodities produced.”

 

 

 

6. The General Theory of Employment, Interest and Money – John Maynard Keynes

Another book I’m not too fond of but has had an enormous impact on the economic thought throughout the 20th century. Here he lays out the case for government intervention in order to tame the boom-bust cycle.

 

 


5. The Failure of the New Economics – Henry Hazlitt

Henry Hazlitt goes line by line through The General Theory and picks it apart piece by piece.

 

 

 

 

4. A Monetary History of the United States – Milton Friedman and Anna Schwartz

In his seminal work, Milton Friedman joins Anna Schwartz in thorough analysis of the entire monetary history of the United States. He concludes that the gold standard is not ideal, but on the other hand, the Federal Reserve was responsible for the Great Depression and monetary mischief is the prime source of economic problems

 

 

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3. Prices and Production and Other Works on Money, the Business Cycle and the Gold Standard – F.A. Hayek

In a series of technical essays, F.A. Hayek outlines the Austrian theory of the business cycle. These works were what he was eventually rewarded the 1974 Nobel Prize for.

 

 

 

 

2. An Inquiry into the Nature and Causes of the Wealth of Nations – Adam Smith

The “founder of modern economics” lays out a devastating case against mercantilism (protectionism, corporate welfare and colonialism) in this classic work which was released in the same year as the Deceleration of Independence (1776 was a good year for liberty). A great, early defense of a market economy.

 

 

1. Human Action – Ludwig von Mises

Ludwig von Mises’ magnum opus is an in-depth, open-ended, analysis of all things economics. This is probably the best defense of the free market economy ever written. A must read for anyone interested in economics.

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Honorable Mentions:

Economics – Campbell McConnell, Stanley Brue and Sean Flynn

A fairly standard textbook on economics, but if that’s what you’re into, take a look.

The Economic Consequences of the Peace – John Maynard Keynes

John Maynard Keynes’ first famous work discussing the economic consequences of the new order developed after World War I.

America’s Great Depression – Murray Rothbard

Murray Rothbard takes on the standard wisdom behind the Great Depression. Instead of animal spirits and a liquidity trap, he blames the monetary expansion during the 1920’s by the Federal Reserve to help Britain return to a pre-war priced, gold standard. He then blames Hoover’s interventions for extending the Depression.

Principles of Political Economy and Taxation – David Ricardo

Ricardo was not as good a writer as Adam Smith, but his classic book is critical with regards to the history of economic ideas.

Essay on the Nature of Commerce in General – Richard Cantillon

Even before Adam Smith, Richard Cantillon wrote a brilliant analysis of how market economies worked. He was the first to discover what are appropriately named “Cantillon effects,” namely, that inflation benefits particular groups based on who gets the new money first, before prices have had a chance to rise.

A Farewell to Alms: A Brief Economic History of the World – Gregory Clark

Gregory Clark’s book is a great and thorough overview of world economic history.

Equality, The Third World, and Economic Delusion – Peter Bauer

Peter Bauer devastates the argument that foreign aid and top-down directed economies are what the third world needs. As should be clear now, Bauer was right, markets, trade and limited governments are what these poor countries need.

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Top Ten Economics Podcasts/YouTube Channels

10. Economics (Cornell) 

A smart and fair look at the economy, albeit very academic (whether you think that’s a good thing or not is up to you).

9. The Economist 

Short and mainstream looks at current events in business and economics. A good way to keep up with what’s going on regarding economics matters.

8. Radio Hogan

Radio Hogan takes a pretty hard-left, Keynesian (and rather abrasive) look at economic matters. He’s a major critic of libertarians and the Austrian School.

7. HowtheWorldWorks

Lee Doren started his channel a while back and eventually got a job at the Competitive Enterprise Institute for his work. While he sometimes shills for Republicans, he usually is pretty on economics.

6. Free Domain Radio

Stefan Molyneux considers himself a philosopher first, and his youtube channel discusses all sorts of issues from an anarcho-capitalist perspective, but he talks about economics a lot and interviews all sorts of specialists in the field. He’s also very good with visuals and makes a lot of great videos on the subject.

5. Cato Daily Podcast

Cato produces a daily podcast on either the economic issue of the day or some theoretical/historical subject from a mainstream, libertarian perspective. They also have a longer event podcast which is worth checking out as well.

4. Schiff Report

Peter Schiff, the most famous man to predict our current financial crisis, has is own youtube channel where he discusses the economic happenings of the day. Nowadays it’s mostly clips from his radio show, though.

3. Reason TV

Reason TV, an offshoot of Reason Magazine, provides a great, libertarian look at all sorts of issues, especially economics. It’s also often very funny, see here.

2. Liberty Pen

LibertyPen’s youtube channel shows clips from great libertarian academics and journalists discussing all sorts of economic issues in concise yet enlightening segments.

1. EconTalk

Nothing beats Russ Roberts’ hour long discussions with economists from across the political perspective when it comes to learning about economics. The best economics podcast out there bar none.

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Honorable Mentions:

Economics (60 second lectures)

Do you have ADHD but still want to learn economics? Then these 60 second bursts of economics knowledge are for you.

Economics (Khan Academy)

Another good academic discussion of economics.

Economics (UC Davis)

Ditto.

Lew Rockwell Podcast

Lew Rockwell’s interviews are usually more about politics than economics, but he does touch on economics a lot and it’s well worth the time to listen.

Demand Side Economics

This is probably the best Keynesian podcast out there and would have made the top ten list except they don’t appear to be updating any more. Their archive is still worth a look.

 

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Top Ten Economics Websites

Want to keep track of business and the economy? Want some good insights into economics? Here are some of the best places to start:

10. The Wall Street Journal

A bit mainstream for me, but a good rundown of the business world, the economy and how political developments relate to them both.

9. Business Insider

A very good look at business and the economy from a variety of different political perspectives.

8. The Economic Policy Institute

The best liberal look at economic policy out there. The home of Dean Baker, my favorite liberal economist.

7. The Economist

How could I have a list of top economics websites without the magazine named after economics? Well, perhaps that’s a bad reason, but this magazine/website provides good, albeit mainstream, insights on economics with an international perspective.

6. SeekingAlpha

Information on economics, business, finance and investing that’s hard to match.

5. Shadow Stats

John Williams’ sight takes a heterodox stance on government statistics regarding inflation, employment and deficits. Definitely worth a look.

4. The Independent Institute

A great series of essays, articles and videos on economics from a radical libertarian perspective.

3. The Cato Institute

A more mainstream libertarian institution with all sorts of resources on economics, both regarding current events, theory and history.

2. The Mises Institute

A plethora of essays, free ebooks, lectures, articles and a forum dedicated to the Austrian school of economics (and probably anarcho-capitalism as well).

1. Econ Library

Another great resource with all sorts of books, articles, interviews and lectures that takes more perspectives into account than Mises.org (which is why I give them the nod in a very close race). Definitely a great place to go for someone looking to educate themselves on economics.

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Honorable Mentions:

 

CNN Money

A mainstream source of business and economic news, but a good place to start.

CNBC

Another mainstream source of information, but they’re not too bad.

Fox Business

Same as CNBC but more right leaning.

Forbes

More of a look at business than economics, but the two are very interrelated and it’s good to have a grasp of both in order to fully understand economics.

Business Week

Ditto.

The Brookings Institute

A mildly left-leaning think tank that offers a lot of insights into economics and public policy.

The American Enterprise Institute

A neoconservative think tank that’s horrible on foreign policy (in my opinion) but pretty good on economic policy.

Prudent Bear

A site dedicated mostly to investing and finance, but is also very good at economic analysis.

 

Photo Credit: P.A.P. Blog

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Top Ten Economics Blogs

 

10. The Money Illusion

A blog on “the endlessly perplexing problem of monetary policy.” Well written and updated frequently. Check it out.

9. Marginal Revolution

A wide-ranging blog by the pro-Fed, libertarian leaning Tyler Cowen.

8. Beat the Press

My favorite liberal’s blog, Dean Baker, takes on economics, especially corporate welfare and intellectual property laws.

7. Consulting by RPM

Robert Murphy’s libertarian blog’s highlight are his continuous take-downs and debunking of everything Paul Krugman writes. That in itself is worth checking this blog out.

6. Econompicdata

Another liberal economic blog, but with pictures… and graphs… and all sorts of fancy graphics that makes it very entertaining to look at (especially if you have ADHD).

5. Carpe Diem

University of Michigan economics professor Mark Perry takes on all sorts of economic matters in his thought-provoking blog.

4. Cato Unbound

A whole range of authors discuss topics in a great format. Usually someone will make an argument, followed by several other rebuttals and then some counter rebuttals just for good measure.

3. Mises Blog

The folks at Mises.org take on current events in one of the many features of their great website.

2. Cafe Hayek

Russ Roberts and company take a look at all sorts of economics matters in a blog that’s well worth your time to read.

1. Swift Economics

Easily the greatest blog in the history of the world… and it’s not close.

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Honorable Mentions:

Stephan Kinsella

Stephan Kinsella’s libertarian look at economics, especially intellectual property rights.

Grasping Reality

Brad Delong’s Keynesian blog is definitely worth checking out.

Economic Policy Journal

A libertarian look at the economy.

Facts and other Stubborn Things

Daniel Kuehn’s liberal look at the economy.

EconLog

I probably would have ranked this one higher, but it’s mostly the guys from Cafe Hayek, so it’s a bit repetitive. Still has good stuff, though.

Photo Credit: The Viral Garden

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