The Borrowers Burrowing Their Heads in The Sand

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(Edited)

Hey Jessolvent

Some time ago some white dude in a puffy ass wig Alexander Hamilton decided that we should have a central banking system that issued promissory notes called fiat money and use it as the medium of exchange for goods and services. At the time it was a good idea and helped us built vibrant economies and innovations that brought us where we are today.

However, as with all power comes greed and any centralised system can be bastardised with time. As we outsource our funds and medium of exchange to a select few they would look at ways to benefit themselves by moving the goalposts.

stop borrowing money
Image source: - moneynuggets.co.uk

Consumer borrowing

We borrow money for things like homes, cars and other consumer habits and banks are willing to give us the money for these purchases which very few of them bring in any return. All you are doing is leveraging your life to the bank and saying for the next 20 years I commit to working for you and splitting my income with you.

This behaviour has become so normalised that even though these bad loans are destroying our retail economy banks can't stop handing them out and people are willing to leverage it for things they really can't afford for some or other physiological fulfilment.

Corporate borrowing

Then we get companies borrowing money and what they do with is create goods and services for us to take advantage of and we pay back their loans through our purchases. Then from that profit, they use that to buy back their own stock inflate the value of their companies so they can borrow more money and the cycle of extracting money from consumers can become more widespread and continue to snip off more of your disposable income.

Government borrowing

Then we have the government, the borrowed money to help create a society we can all live in be safe, pay for infrastructure, stimulate business and assume liability for the medium of exchange, fiat money. Governments borrow money from investors and who pays it off? You do, remember that paycheque I mentioned earlier?

Well, it gets a little smaller through things like income tax, VAT, Sin tax, capital gains tax and more.

The borrowers

The world works on borrowed time and the hope that there will be enough suckers in the middle class to produce more people who will continue to be suckers and feed the Ponzi scheme of an economy we have today.

We've all borrowed so much money, cheap money, money that keeps getting cheaper and losing its purchasing power. We've used this money to prop up industries and create bubbles instead of creating wealth and innovation that help the people. The world is so over-leveraged that we have so much debt future generations need to work off its pure insanity.

We say we want a better future for the next generation, for our kids but we keep adding more debt for them to work off, how will they ever get to have a better life?

Let's connect

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59 comments
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So glad I have no debt.

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Sadly you're one of the minority and on top of that, we still paying corporate and government debt through the various fees they lay on our everyday lives! Money clearly doesn't make the world go round, debt does!

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If you borrow to a house in your Country- What Will the % be ?
We can get 1.3% ... With inflation at 1% it is ....nothing.
Soon we get paid to loan money...

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To buy a house here you're looking at around 10.25% and we have an average inflation rate of around 4.5%.

Negative interest rates for consumers is one of the biggest scams, they effectively stealing from savers to give to the borrowers, that makes no sense. It would maybe be okay if the money was going into production but its not, its just another financed home or car.

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10,25 ! OH .....
Yes we have negative intrerest. A Swedish bank said some weeks ago that "soon you have to pay money to keep money at our bank" (we will see if it happen)

But 10,25% that was high. If I borrow without safety I get 5%. But as you say - you have a high inflation too.

BEER! 1

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Lol well if I have to pay you to keep my money then I would be taking my money elsewhere. Is there a possibility of you using another countries bank? How do Swedish people feel about this or do they not care?

10% is insane but our money isn't worth a lot and with all the unemployment and people continuing to default the banks are trying to extract as much as they can while they can

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No worry for us. We have a lot of banks and it was only one that said so. In Denmark one bank has "you have to pay if you have more than 90 000 USD at our bank" So even if that rules comes to Sweden I have no problem - I do not have so much money.

We can also easy open up bankaccount at other countries in EU.
Time to work - Writing about "loan for consumtion" :-)

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That's very cool that you can shop around for banks, we don't have that here all 5 banks are basically the same.

I think I should move to the EU and do SEO there and store my money in a South African bank account and get my 6.25% on my savings :P

Maybe I should just try it out for a few months, see how good Swedish SEO's are!

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Taxes are my biggest expense taking slightly more than 50% of my income in a variety of taxes, fees, levies, green initiative charge, surcharges, carbon taxes, GST, PST, recycling fees, innovation fees, transit levy, premiums, etc.

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Honestly reading that is scary, I don't know how people do it! I guess I'm not cut out for the first world! If that were here we'd have lost our minds long ago and civil war would have broken out, well not that we're not on the brink of it every day but I know damn well all those fees would be a trigger.

How does the average Canadian survive with so much of their disposable income already spoken for?

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It forces Canadian consumers to borrow money to maintain their lifestyle of consumption. Canadian household debt, excluding mortgage, is 170% of after tax disposable income in 2018. Each after tax $1 earned is also in debt to $1.70 in unsecured consumer debt. I however live debt free of credit cards and any Rotating credit. I live within my means, modest or frugal. I do not own a car. So I am an exception.

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Surely that is unsustainable unless wages are keeping up or defaults would be going through the roof or is the influx of working immigrants now helping take on the debt burden? I read there was a big drive to recruit to Canada!

So if you're not frugal and you lucky enough to meet your mortgage and retire at 60 you will be in debt which your pension will have to cover and then be a burden on the state?

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And as expected, credit defaults, accounts arrears, personal bankruptcies are way up. Just wait until Interest rates have to hike for institutions to attract liquidity. Immigrants, that's a whole bizarre situation where there are already English speaking skilled workers awaiting immigration only to be trumped by Syrian refugees at the cost of 50k per year.

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Oh, it does sound like thats a recipe for a perfect storm, I'm just wondering where the breaking point will be for you guys. Isn't it elections too? These problems should be front and centre right now

That's what I found very strange there's been quite a bit of advertising lately this side about moving to the US and Canada and I have friends who are engineers in software, electrical, civil, chemical and myself we all went through the process and it was such a pain doesn't look like they were interested in getting us in at all. lol

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Yes we have an election in progress, bribing us with our own tax money, lots of irrelevant social justice issues, promised spending with the usual low ball cost that will turn out to be far over budget later, overestimating revenues, equals more deficit therefore more debt. Retail and consumer economy is suffering because most Canadians have little disposable income left after expenses. Parties are on the left except the one genuine conservative party that I'm voting for.

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You paint a pretty bleak picture, but I appreciate the honesty and the chance to learn what goes on on the ground. Things are bad here, and we're always sold the first world dream but it sounds more like empty promises now.

I am low key freaking out the more I learn and I feel like everyone is asleep at the wheel. What will it take for people to wake up and say this is no way to live?

What do you think your chances are of shifting the government to a more conservative approach? We're very much left-leaning this side since they're the party that gave us democracy and granted us civil rights so they're still running on that even though they've run the country into the ground

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Many Canadian citizens are like sheep and are easily taken in by media monopoly. It is difficult to quantify how many Canadians feel that sense of loss of liberty , and those that do are silenced by intimidation and legal threats. The only Right leaning party is vilified by the media and the political elite, any platform or venue of the Peoples Party of Canada is often shut down and deemed a 'Hate' group.

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Well it does take something radical to force change! People don’t see danger until they are falling off the cliff and that’s how we learn!

Sadly people love the status quo and believe it will always continue even if it’s not in their favour they will fight to protect it because it provides a false sense of stability

We had our elections this year and nothing changed nor did I expect it to! Short of war or famine or economic collapse people will keep repeating the same process! That’s how low the expectations of a government is, at least they haven’t pushed us into anarchy so we fine with pockets of it

It will be interesting to see how this all plays out over the next few years! There’s so much disruption coming that I think no one is ready for and it’s going to blind side people

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Hey :) nice article also with some information about decentralization! I also want to das thank you again yesterday i published my first Post through travelfeed it really helps my Account growing Up :))

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Thanks! Glad you took the time to check it out. If we had more decentralised finance and hard money we could limit this preditor and reckless lending and people can live within their means.

Awesome you took my advice, :) Hope to see you become a minnow real soon, let's get you to 500 SP

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Yes thats so right! I think decentralized currencies are at this point the right way and a good option, not including libra ;)
Yeah i try it lets see :)

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Do you own other cryptocurrencies other than steem? It may be small now but it's important to own a little bit of Bitcoin and if you find others you like. LOL at "not including libra", i like your style

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Haha yeah but its true libra isnt decentralized ;) yes i own Bitcoin and Ethereum and some other cryptocurrencies but almost Bitcoin. I think thats a safe way to store your money. What so you think or do you own some?

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Lol yeah it's just a way to scam people out of more money and control along with data mining for more intrusive ads.

Yes I own Bitcoin, Litecoin, Ethereum, DENT, NULS, Kucoin, MCO coin, Doge, STEEM, Cardano & TRON. It's an exciting space to play in and hopefully pays off in the future

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Thats so true! Thats just to get more and more data. Thats interesting even when i own other currencies. But i also have a little Bit of litecoin. I think it will we have to give them just 2 or 3 more years to have a new bull cycle end 😊

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If we let them they will milk as much as they can out of their users. So glad I stopped using traditional social media sites. What's your favourite coin? I hope theres a bull cycle again someday and see the price skyrocket but before then I'll continue to pick up "cheap" cryptocurrency

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Thats true. My favorite smaller coin ist IOTA. Its issue is the internet of Things. But i also like privacy coins like monero. And yours? Yes i Hope so too and accumulate :)

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I do like the idea of IOT and I can see its value but the projects currently in the space don't really look all that interesting yet. I know there's ITC and Chainlink, waltonchain and vechain trying to do similar work.

I really like STEEM naturally and what EOS has been doing too, don't agree with everything they do but keen to see where both projects end up.

Seems you're pretty ahead of the curve! I'm impressed. Have you bought anything with crypto yet?

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Yes i understand what you mean. I just like in IOTA that it uses their TANGLE thats different from the blockchain. But honestly i do not really know much about Chainlink and ITC and the others ;)

I do not hold steem just the ones in my Account but its an interesting product. And i hold EOS too just to have it when Ethereum will not bei the first smart contract Platform. But i dont like the centralization of eos.
Yes i really Like the space its really interesting. Nice to hear another opinion on some cryptos.
No i havent bought something with Crypto because i See in it more an Investment. Honestly i Think we will See cryptocurrencies from Banks and the really decentralized currencies are an Investment. For example ist Bitcoin for me like digital gold because it is rare and i do not see why you should sell it for groceries or something when you think it will increase in price because its deflationaire. But that are just my thoughts in it. Do you bought something with it? ☺️

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Oh wow you've really done your research, I do like the concept of tangle I also like mimble wimble but until I see them actually doing something with these concepts I'm not willing to invest in it. I'd rather be late to the party lol can't win them all. I'm happy with the alts ive chosen and if I do find new ones in the future I think will be big I don't mind dropping a few $ in it.

I agree with EOS the governance is a bit of an issue, but I think that each chain will have its own problems and there won't be a perfect model for decentralisation, not with the scalablity trilemma still not solved. I think we will just have to decide how much decentralisation or centralisation we happy with when using a chain.

I think banks will use something like XRP they won't try to build their own perhaps some will like i know JP morgan tried but I don't know how well that's going to do, I think its best to leverage another chain.

I've bought things like Splinterlands cards, sent money to friends, paid freelancers but I haven't bought any goods with cryptocurrency.

At the moment I'm looking for more passive forms of income so I use tools like crypto.com or kucoin softstaking to earn on my crypto by holding with them. I know its a risk but I think it's better to earn a little interest while the costs are still low

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Yes i also like mimble wimble and its on my watchlist but i am not shure at this time if i want to invest ;)
Thats right but i hope Ethereum will scale soon ;) at the moment its my favorite in smart contract platforms.
Yes i think that too i also like coins which are a little Bit "older" in the crypto space Like xrp.
Oh i never heard about splinterland cards, Sounds interesting.
I also heard of staking and that should be the next big maybe you have luck i hope so! For me i am trying trading since one month but with a very small percentage of my Portfolio ;)

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You’ve really done your research, you should check out the steemleo site or tag it’s where you can find all sorts of crypto content.

We will see ETH 2.0 should be available next year with staking and sharding through Casper so it will be much more scalable! Will be interesting to see how dApps will take advantage of the new updates

What site are you trading on? Is there a specific pair that you like to trade?

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Thanks yes i try to inform ne every day on Crypto News :) you also seem to be good informed!! Thanks for the tag i will definitly check it out.
Yes i heard of Ethereum 2.0 hope they will do Well.
I am Trading on bybit its very easy to use. No i am very new on the space so i use btc/USD . Do you trade ?

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Nice to meet someone who is so positive about crypto and not just focusing on the prices and being realistic

Are you using leverage trading on buybit or you just trading with your own funds? How is it working for you? We’re you able to make some profits?

I don’t trade it, it’s too time consuming lol! Maybe one day when I have enough stake or it’s worth enough to sit and trade but for now I have to focus on my job and earn fiat I can use to buy more crypto

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Yes i think mostly everyone who ist in crypto also looks at the prices but there ist so much more its Like the internet in the earlies it will change so much

I use leverage trading but not high ones because i am not experienced in it ;) at this Point i have had a profitable and an unprofitable trade so i am at 0 ;) but i Just make 2 trades with less money cause i have to learn a lot. I use youtube videos for that.
Oh yeah thats right it is time consuming! But i am a student lol. You are right i think especially in these times right now its a good choice Just to accumulate!

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Yes the price really doesn’t matter what matters is your stake, we’ll to me that is what matters! Most of the top crypto’s are fair surpassed any fiat currency in terms of buying power in any case and as inflation continues these assets only gain value each year

Good luck with your trades I’d like to keep up with you and once you get the hang of it you can show me how you do it lol

What do you study?

My goal is to be part of the 21 club and own a whole Bitcoin

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Yes i think so too.
Thanks i hope i will work. Thats cool i wouls Like too when it works i will tell you and i can show you one day :)
I studying law in Cologne i really like the Stuff. Yes its me goal to i think i can achieve it in the next bear market, maybe in 3-4 years. What is your time horizon for this goal? And what are you working.
I think it will be very interesting to See were we both stand in 4 years !

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The halving is happening next year so that’s something I feel will push up the price and the interest in crypto it’s the 3rd once and each one has pushed prices higher

Awesome lol we can both be part of the 21 club that would be epic

So what do you plan to go into once you’re done studying? What would be your ideal job?

I’m an SEO so I do digital marketing and website management for sites so they can get better targetted traffic from google search

The next 4 years will be interesting indeed! Keep stacking Sats no matter what

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Oh yes i am really exciting about the next Bitcoin halvening it will Bitcoin bring Up to a higher level.
Yes it would bei Epic and also a little Bit crazy.
I dont know now its my Goal to have financial freedom at the end of my studies. But when i have more Money i would like to go to Crypto events so i can meet more people in the crypto space. It would bei awesome :)
Thats sounds so interesting! I think your Job will be really needed in the future also.
Oh yes i will do. I really wish you good luck so far by accumulating!

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I also think we will see a new stable high after we hit new all time highs I’m thinking the next level will see us sitting around $15k which is going to make it hard for a lot of retail investors to own a full BTC which is what many would love to have! So we should enjoy these prices while we can!

I’d also like financial freedom and be able to travel a lot more! Would have loved to go to steem fest this year but with price action so low for steem it really isn’t worth it for me at the moment! Hopefully the next one I can go and perhaps we can meet up there

It is pretty in demand, everyone wants more traffic and leads lol but it isn’t the easiest and clients are impatient

Are you on discord by any chance?

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Yes i think we will See ath after the halvening so we have enough time to buy especially at the moment. Yes i think after the next bullrun it will be the goal of many people in Crypto to have one BTC.
Now i am verynew on steem so i did not Go to the steemfest but it Sounds good i would like to meet you there next time :) oh yes steem price action isnt so good but i think i will be better in the upcoming bullrun.
How so you get youur rewards on steemit? I choose steem Power and steem because i think steem will increase in price. What so you think?
Really Not sounds so easy. What so you mean with discord sry my english is not so good and the translator so Not work ;)

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The fact that we've had such a long bear run and we're still building and growing the industry speaks volumes to me. How did you find out about Steem?

At the moment I'm all about adding more steem power so I can earn more steem going forward. I've been using my additional steem power for better curation rewards as well as delegating it others via dlease for an additional income.

Discord is a chat app most steemians use and where lots go on outside the site

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I find out about steem because i watched some YouTube videos aber Crypto currencies and someone mentioned steem there :)
Okay thats also a nice strategy. Maybe i will do this one day too.
Sounds interesting i will download discord and let you know when its on my Phone !

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A friend told me about STEEM because I liked to blog and he said I could earn from this site and when I got here it was really different 2 years ago than what it is today. I think the next 2 years will be pretty much the same, keeping up with all these changes can be a job in itself and part of being a steemian lol

At the moment I also want stake because we will soon have a resource credit pool and the more stake you have the more RCs you have which can be delegated for a return. There are going to be plenty of ways to earn within steem soon so I want to have more stake so I can take advantage of it.

Awesome! I'll invite you to some groups I think you might like

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Oh two years is a long time. Cool that you keep Up blogging on steemit! I needed also some time to understand steemit more.
Okay i do not understand much of staking but when its profitable thats good ;) maybe also to Put something into btc ;)
Thats nice i have made me the App my Name there is katrin-lux Like my steemit name. :)

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Indeed and it’s gone by so quickly and I’ve learned so much! But I already quit normal social media so I was looking for something new

Staking is almost like locking your funds away and allowing the network to use it and in return you get a return

Great, well I would need your #id to add you
My username chekohler#8066

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Hey :) my Name on discord is katrin-lux#5683
Seems to be a more secure Investment with lower risks in the short term!
Yes Me too i Just use Instagram but its a little bit boring steemit is more about a story behind the picture

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Awesome, thanks! I've sent you an invite now :)

I've set my goal for 2024 to cash out my crypto or be able to live off it directly, I wonder which one it will be :P

I do still have an Instagram account but I hardly use it, its more for messaging people than actually posting anything on it but I think I'll be deleting it soon too lol

Steem has its own versions their @steepshot, @appics and @deegram and you can connect your Instagram to your steem account with @share2steem too

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Thanks i will Check it out! Okay yes thats a good Plan. I will Cash it Out when btc surpasses some price levels Like 150-350000
And i understand your idea from living of Crypto profits maybe i will do this one day too.
Haha really i also have one but i do Not deleting it because every friend of Mine has it. But i should delete my Facebook Account lol
Thanks for the Tip sounds good with connecting steemit and Instagram i will definitly so it!

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Hi, @chekohler!

You just got a 4.91% upvote from SteemPlus!
To get higher upvotes, earn more SteemPlus Points (SPP). On your Steemit wallet, check your SPP balance and click on "How to earn SPP?" to find out all the ways to earn.
If you're not using SteemPlus yet, please check our last posts in here to see the many ways in which SteemPlus can improve your Steem experience on Steemit and Busy.

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@tipu curate

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Why thank you kind sir

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You had me at white dude in a puffy ass wig LMFAO!

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Lol glad my humour is appreciated I try to post about serious things but also take the Micky out of it! I can't trust anyone or take them seriously with fashion decisons like that

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Hi @chekohler!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 4.191 which ranks you at #3200 across all Steem accounts.
Your rank has not changed in the last three days.

In our last Algorithmic Curation Round, consisting of 92 contributions, your post is ranked at #57.

Evaluation of your UA score:
  • Some people are already following you, keep going!
  • You have already convinced some users to vote for your post, keep trying!
  • Try to work on user engagement: the more people that interact with you via the comments, the higher your UA score!

Feel free to join our @steem-ua Discord server

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