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DANIELLE July 2016



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Editor’s Picks that have been foisted upon the public for millennia. Probably none more enduring than that of Charles Ponzi which bears his name as its moniker. Yet, there’s also been another who was also ways as to extract monetary gains by ill-

If you read his latest (which I’ve tried but can’t bear that much comedy in one

styled rhetoric.

believes) should now take place involving Congress, the Administration, and

exactly that. e.g., Many forget “con”

some arbitrary account which only the Fed. or its appointed designates have But here’s the punchline, ready?

was one of his other cons that came to mind as I was thinking about the current state of monetary policy we now

“Importantly, the Congress and Administration would have the option to leave the funds unspent. If the funds

And now that the $Dollar along with just about every other currency is all riod. And once it’s lost just as with any “con” – it ends with blinding speed and consequences.” -

long gone, and quite far with that kind of head start back then. Yet, it’s once

Remember, this is coming not only from the former Chair, but also, one who is quite possibly the most emblematic of current thought residing throughout central bank policy makers with an additional caveat: He’s no longer bound by the position where his thoughts need to be guarded as a voting member of such policy lunacy. In other words: he can now speak his mind openly. To which I’ll muse – that’s no

and every other acronym that represents some form or another of central bank intervention within the markets. So adulterated have the markets now become with central bank meddling; describing them without using quotes such as “markets” seems reckless. For these are far from the markets once thought to represent free market capitalism. Today they are “markets” in name only. For just like currencies – they’re no longer backed by anything once considered tangible like gold or ing.

one thing is certain: You don’t want to still be around or found.

how prevalent Keynesian economics now dominate.

as well as, companies reporting (ad in-

Lustig’s other con was a device he slated would print $100 bills. But it had a problem. Unbeknown to his mark, this probproblem was (as stated by Lustig) – it could only print 1 bill every 6 hours. chine it contained two genuine $100

As with any con game the perpetrator knows it’s all a con. In other words, “Duh!” Yet, if you listen closely to both past as well as present Fed. members you can’t help but notice by way of their current arguments, as well as, proposals for future monetary policy. con” is: themselves! Nowhere has this been on display more than the current public writings and musings of former Fed. Chair Ben Bernanke.


the Fed would be empowered to withdraw them.” (Insert laugh track here)

just how far down this “rabbit hole” central bankers have gone. So far I’ll ally believe this subterfuge. When I’m giving a talk, or engaged “con game” when describing current sive as if I’m using hyperbole, or trying to make a point by using over the top

revenue while declaring “We’re killing it!” via Non-GAAP accounting will make even the most ardent supporter of Keynesian thinking question this on for so long, because, to keep up the ruse (just like suckers) more absurdity is needed. We may be reaching that end To read the complete story, go to absurdity-when-the-con-believes-thecon/


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Contents We Measure What We Optimize

A Plane Ride Away

Publisher.. . . . . . . . . . . . . .Richard Paul


40 Volcanoes Erupting Right Now

Online Dating Can Be A Minefield

Art Directer.. . . . . . . . . . .Mike Rizkalla

Columns Publisher’s message.. . . . . . 3 Editor’s Pick.. . . . . . . . . . . . . . . .4 News.. . . . . . . . . . . . . . . . . . . . . . . .12 Lifestyle.. . . . . . . . . . . . . . . . . . . .19 Need Graphic Design.. . . . .23 Live as if you were to die tomorrow. Learn as if you were to live forever. - Mahatma Gandhi

www.daniellemagazine.ca 7


WE OPTIMIZE WHAT WE MEASURE by Charles Hugh Smith Rather than measure consumption and metrics that incentivize debt, what if we measure well-being and opportunities offered in our communities? The problems we face cannot be fixed with policy tweaks and minor reforms.Yet policy tweaks and minor reforms are all we can manage when the pie is shrinking and every vested interest is fighting to maintain their share of the pie.

Our failure stems from a much deeper problem: we optimize what we measure. If we measure the wrong things, and focus on measuring process rather than outcome, we end up with precisely what we have now: a set of perverse incentives that encourage self-destructive behaviors and policies. The process of selecting which data is measured and recorded carries


implicit assumptions with far-reaching consequences. If we measure “growth” in terms of GDP but not well-being, we lock in perverse incentives to boost ‘growth” even at the cost of what really matters, i.e. well-being. If we reward management with stock options, management has a perverse incentive to borrow money for stock buy-backs that push the share price higher, even if doing so is detrimental to the long-term health of the company. Humans naturally optimize what is being measured and identified as important. If students’ grades are based on attendance, attendance will be high. If doctors are told cholesterol levels are critical and the threshold of increased risk is 200, they will strive to lower their patients’ cholesterol level below 200. If we accept that growth as measured by gross domestic

product (GDP) is the measure of prosperity, politicians will pursue the goal of GDP expansion. If rising consumption is the key component of GDP, we will be encouraged to go buy a new truck when the economy weakens, whether we need a new truck or not. If profits are identified as the key driver of managers’ bonuses, managers will endeavor to increase net profits by whatever means are available. The problem with choosing

what to measure is that the selection can generate counterproductive or even destructive incentives.

a calorie-rich windfall that didn’t require a lot of work ate better (and had more offspring that survived) than those who failed to reap windfalls. In the natural world, such windfalls might be a tree heavy with ripe fruit or a beehive loaded with honey.

This is the result of humanity’s highly refined skill in assessing risk and return.All creatures have been selected over the eons to recognize the potential for a Calories were scarce, and windfall that doesn’t require work burns a lot of calories, so much work to reap. the ideal scenario for the huntWhen humans were hunt- er-gatherer is a windfall that can er-gatherers—our natural state be harvested with a minimal for hundreds of thousands of investment of calories/effort. years, compared to roughly In our economy, qualifying for 5,000 years of agricula positive reward without ture—those on the lookout for investing too much effort is a

windfall. As a result, whatever is measured sets up a built-in incentive to game the system (i.e. exploit short-cuts) or cheat to qualify for the reward with the least effort possible. So if students are graded on attendance, and attendance is measured by the students signing in at the start of class, students can get the reward of a high grade by signing in and then sneaking away. If students are graded on submitting homework daily, some students will extract homework from other students that can be copied with less


DANIELLE effort than actually doing the work. Those seeking a windfall might use bribes or threats or blandishments to get the free homework, as the investment required to pursue these strategies is still smaller than that needed to do the homework. If the grades are measured by a multiple-choice exam, some students will attempt to steal the answers ahead of the exam. Compare these relatively easy-to-game thresholds to difficult-to-game tests such as long-hand answers to randomly selected questions assigned to each individual at the start of the exam. If the answers must be composed within the test

period, it is essentially impossible to learn which questions students will receive beforehand and therefore impossible to prepare an answer (or pay someone else to answer) beforehand. Once the time and effort needed to game the system exceeds the investment required to learn the material, the incentives shift to learning the material with the least effort possible. Notice that the system’s cost of measuring data and enforcing compliance is correlated to the effectiveness of the enforcement and the value of the data. The lower the system’s costs,

the lower the compliance rate and the value of the data. Any system which makes compliance cheaper in effort invested than shortcutting the system will have high costs. The more effort invested in obtaining meaningful data, the higher the value of the data. In our example, the cheapest measures of student performance–attendance, multiple-choice tests, etc.–do the poorest job of measuring actual student learning. To actually measure student learning requires significant investment in the process, and a careful analysis of what metrics best reflect real student learning. There is a growing dissatisfaction in the economics field with the current measures of economic activity: GDP, unemployment, and so on. This dissatisfaction reflects a growing awareness that these legacy metrics do a poor job of capturing what is actually important in fostering sustainable, broad-based prosperity, what many call well-being. What are we measuring in healthcare? Healthcare metrics offer a useful analogy. If cholesterol levels are a critical measure of health, then the medical community devotes its resources to lowering cholesterol levels


DANIELLE below whatever threshold has been identified as critical. But what if a better overall yardstick of health and risk is the body mass index (BMI), which measures height and weight? While there are limits to BMI (for example, some super-fit bodybuilders might have an elevated BMI, even though they are not fat), for the vast majority of people BMI is a useful measure of risk for cardiovascular and metabolic syndrome-related diseases such as diabetes. Unlike measuring cholesterol, BMI does not require drawing blood; anyone with access to a tape measure and a cheap scale can calculate their BMI. Unlike cholesterol and blood pressure, both of which can be lowered with medications, BMI is difficult to short-cut. The only way to lower your BMI is to lose weight, which in the vast majority of people means losing accumulated fat via a disciplined regime of diet and fitness. The status quo is based on legacy metrics that are misleading or counter-productive. The status quo has been optimized to gather these measurements and assign great meaning to them. Does it make sense to optimize expanding consumption when resources are finite and

the incentives to squander resources on unproductive consumption are so high??

incentives that guide the goals, strategies and behaviors of participants.

If profits are the only metric that matter, and labor costs are rising for structural reasons, then why would private enterprise hire more workers when robots and software are cheaper and more productive in terms of boosting profits?

Rather than measure consumption and metrics that incentivize debt, what if we measure well-being and opportunities offered in our communities? What if we measured doing more with less rather than consuming more? What if our primary measure of economic well-being was the reduction of inputs (resources, labor, capital, etc.) that resulted in higher output (increased well-being)?

If we measure academic achievement by the issuance of a college degree, but the process of earning that degree does not measure real student learning, then what are we measuring with college diplomas? What we’re really measuring is the students’ ability to navigate an academic bureaucracy for four or five years. Since we’re not measuring useful learning, we have no way to hold colleges accountable for their demonstrable failure to teach useful skills. The key point here is systemic success or failure arises from our choices of what to measure and what thresholds we set as meaningful. Whatever we select to measure and deem important, participants will optimize their choices and behaviors to reach the rewards that are incentivized. If we choose counterproductive metrics, we built perverse incentives into the system,

How can we select metrics that productively measure well-being, sustainability and opportunity not just for elites but for every participant? What thresholds can we set that will create incentives for adopting best practices and appropriate technologies? These questions help us see that to create a sustainable system that alleviates inequality and poverty, we must first choose metrics that create productive incentives for best practices and disincentives for fraud, corruption, waste and inefficiencies. This essay was drawn from my new book Why Our Status Quo Failed and Is Beyond Reform.



DANIELLE by Michael Snyder Have you noticed that our planet has begun to shake, rattle and roll? Over the past few days we have seen major volcanic eruptions in Costa Rica and Indonesia, and according to Volcano Discovery 40 volcanoes around the planet are erupting right now as you read this article. Meanwhile, earthquakes continue to shake the globe with alarming regularity. Just last week, Ecuador was hit by a magnitude 6.7 earthquake and a magnitude 6.8 earthquake in rapid succession. Overall, there have been more than 3,000 earthquakes of magnitude 1.5 or greater within the past month globally. So yes, I write constantly about the rapidly accelerating deterioration of our financial system, but the coming “collapse” is not just about money. I am convinced that we are entering a “perfect storm” in which a confluence of factors will absolutely cripple society and bring about changes that most of us would not even dare to imagine right now. Let’s talk about the volcanic eruptions that we have seen in recent days. The eruption down in Costa Rica took authorities completely by surprise, and a thick layer of dust and ash is coating vehicles and buildings 30 miles away in the capital city


of San Jose… A volcano has erupted in central Costa Rica, belching smoke and ash up to 3,000m (9,840ft) into the air. Hundreds of people have gone to hospital, complaining of breathing difficulties and skin problems.

The death toll from a volcanic eruption in western Indonesia has climbed to six, an official said Sunday, with fears more could have been trapped by the hot ash.

Some schools were shut and some flights into the country cancelled or diverted.

Three people also remain in a critical condition after Mount Sinabung, a highly-active volcano on Sumatra island, unleashed a series of fresh eruptions on Saturday afternoon, disaster agency spokesman Sutopo Purwo Nugroho said.

People in the capital San Jose, about 45km (30 miles) west of the Turrialba volcano, said layers of ash had coated buildings and cars and there was a fierce smell of sulphur.

“Nine people were struck by the hot clouds. Six died, and three others remain critical with burns,” he said, adding the injured had been taken to hospital.

Leading up to this eruption, there were “swarms of small earthquakes” in the vicinity of the volcano, but scientists assured the public that these earthquake swarms were “not signs of an imminent eruption.”

According to one report, “torrents of lava” are pouring out of the volcano, and this is just one example of how volcanoes that were once considered to be “inactive” are coming to life all over the world. In fact, prior to 2010 Mount Sinabung had been dormant for about 400 years.

Keep that in mind, because later in the article I am going to show you something. But first let us talk about the other major eruption that is happening right now. Down in Indonesia, Mount Sinabung has violently erupted, and this is causing all sorts of chaos…

Meanwhile, there is “unprecedented” activity at Iceland’s very dangerous Baroabunga volcano. This one is not erupting quite yet, but we definitely want to keep an eye on it, because a major eruption there would have serious implications for Europe.

DANIELLE To finish this article, I would like to provide an update to a piece that I posted last week on End of the American Dream. Just prior to the eruption of the Turrialba volcano in Costa Rica, there were significant earthquake swarms in the vicinity of the volcano. Well, the exact same thing is happening at three major volcanoes in the United States right now.

right along the core of the volcano…

I would like to share three images with you that come from Google Earth via the Pacific Northwest Seismic Network. This first image shows the earthquake activity that has taken place in the area around Mt. St. Helens in recent days. Over the past month there have been 95 earthquakes in the region, and most of them have been centered

This next image shows what has been happening at Mt. Rainier. Those that follow my work closely already know that I consider it to be the most dangerous mountain in America and that I believe that a major eruption of the volcano is coming in the not too distant future. There have been 36 earthquakes at Mt. Rainier over the past month, and once again most of them have occurred right along the core of the volcano… Mt. Hood is also a very dangerous volcano. There have been 126 earthquakes in the vicinity of Mt. Hood in recent days, and in this image you can see that the earthquakes have been centered very tightly on a spot on the south face of the mountain. This is alarming because it was also the south side of Mt. St. Helens that violently erupted back in 1980… When there are major volcanic eruptions or major earthquakes in other parts of the globe, many Americans don’t seem to care too much because they don’t think that this rise in global seismic activity is any sort of a threat to them personally. But the truth is that the entire west coast of the United States lies along the Ring of Fire, and virtually


But the truth is that the entire west coast of the United States lies along the Ring of Fire, and virtually every other section of the Ring of Fire is roaring to life these days. At some point, there will be historic earthquakes on the west coast. At some point, there will be historic volcanic eruptions on the west coast.

Scientists assure us that these things are inevitable. So let us certainly hope for the best, but putting our heads in the sand and pretending that these dangers do not exist is not going to help matters one bit. Get prepared while you still can, because at some point time will run out.


A PLANE RIDE AWAY by Suzanne Mondoux I had less than $400 dollars to my name and was only a plane ride away from realizing my dream. Vancouver – London – Lagos, then Calabar. Calabar is a city in Cross River State, south southern Nigeria. I had agreed to volunteer as project coordinator with CERCOPAN for twelve months. You can find everything there is to know about CERCOPAN at www.cercopan.org. But I’ll summarize directly from the website who and what they do. CERCOPAN a UK registered environmental conservation charity founded in 1995, by Canadian Zena Tooze, strives to conserve the rainforest in South-Eastern Nigeria and protect the primate species of this rainforest because both are highly threatened. The main threat to these primates is hunting. As a result many monkeys are injured, captured and orphaned. CERCOPAN provides sanctuary and individual care for orphan monkeys, rehabilitation and reintroduction into the forest they protect. In 2003, the organization changed its name to ‘Centre for Education,

Research, and Conservation of Primates and Nature” to reflect its activities and focus. CERCOPAN is a non-profit NGO reliant upon the generosity and vision of individuals and companies. (http://cercopan.org). Thank you for your kind donation. In 2001 I was one of those volunteers. The experience changed my life forever. I had the privilege of meeting great people and made new friends in ways I had never imagined. CERCOPAN at the time was home to 80 animals. These monkeys were victims of the bush-meat trade. CERCOPAN rescued monkeys of 6 native monkey species 1) Preuss’s Guenon, 2) Putty nose Guenon, 3) Mona Monkey, 4) Sclater Guenon, 5) Red Capped Mangabey, and 6) Red Eared Guenon. This is how I came to know Dolly, Sara, Bolingo, Tatty, and Jacob.

endemic primate species, restricted to the rainforest zone between Niger and Cross River. Dolly’s species is recognized by her tail’s coloration, where one-half to one-third of the underside proximal side of the tail is bright rust-red. Human’s are the most important predator. You can find photos of Scalter’s at http://cercopan.org/sclaters-guenon/. SARA and BOLINGO – They (She/He) are Red-capped mangabey and are a much larger primate than the guenon, taller and appear more slender. These large partially terrestrial species are vulnerable to hunting because of their large size and value as bush meat. Widespread deforestation threatens populations. You can f i n d photos of

Who are they? DOLLY – She’s a Scalter guenon, Nigeria’s only



Red-capped mangabey at h t t p : / / c e r c o pan.org/red-capped-mangabey/. TATTY – She’s a Mona Monkey, a colorful and vocal monkey with distinctive marking – two bold white spots on her hips and either side of her tail. Mona monkeys are commonly held captive primates in Nigeria because as youngsters they appear to make delightful pets. But as they mature they no longer make a cute and cuddly pet. You can find photos of Mona Monkeys at http://cercopan.org/mona-monkey/.


JACOB – He’s a Chimpanzee – not rescued by CERCOPAN but by another rehabilitation center located a few miles from CERCOPAN. You can learn everything about Pandrillus at http://www.pandrillus.org. But I was fortunate and am honored to have met Jacob, my 32 year-old hero. Jacob, orphaned by hunting, and as a result he lived alone for 18 years in a concrete cell no bigger than a king size bed at the now-closed Calabar Zoo, where all other mammals had died of starvation.

The stars where aligned – all the signs where present for me to go on this adventure. I didn’t have much savings because I didn’t have the year to save up to do volunteer work for 12 months. But I went ahead with it anyway. And in doing so – in making the decision – following my dream – the Gods stepped up to the plate to help me. Unbeknownst to me, my friend Lukpla, a Buddhist, shared my story with the monks at her temple in Vancouver. A week before my departure she presented me with an envelope stuffed with a $450 donation.

DANIELLE Words could not expressmy gratitude! My friend Daniel who worked for one of Canada’s international airlines gave me one of his guest tickets. He ensured I was seated in business class to London. Again, my heart filled with gratitude. I was also given another great gift when I checked in at the Vancouver International Airport. When the check-in attendant asked the reason for my trip to Nigeria she ooo and ahhhh with joy and called over her colleagues to tell them about the work I was going to do. They

were so excited for me and knowing that I was a volunteer they waved the excess baggage fee. The entire trip cost me $0. From my airplane seat I looked down at the sea of gold, yellow and brown of the Sahara Desert. Another dream realized! My forehead was glued to the window. My eyes never left the sandy shadows and curves meandering in all directions to infinity. I was just a few hours away from stepping off the plane onto African soil.




ONLINE DATING CAN BE A MINEFIELD by Trisha Stone Dating after a divorce is tough. Internet dating anytime is a bit of a minefield You don’t quite know where to start so here are a few internet dating mistakes and their solutions to get you on your way. Dating after a divorce is tough. You don’t quite know where to start so here are a few internet dating mistakes and their solutions. 1.Too much too soon-So you have been ploughing through those endless profiles on your internet dating site and have come up with someone who interests you. There has been an exchange of emails. He sounds fun and witty and you begin to look forward to his messages. You find yourself getting up earlier in the morning just to log on whilst you drink your coffee to see if he has sent a response to your latest remarks. During the day you compile witty replies in your head and suggestive lines to throw his way. This has gone on for a couple of weeks and he suddenly asks if he can call you. Your chest expands; you are


really excited and arrange a time. Now you are curled up in your favourite chair waiting for the call. Guess what it goes well, the same light banter, his voice is not what you expect but that is OK. You talk for an hour. This becomes a daily ritual which you begin to plan your time around. And then he invites you to dinner… 2.Throwing money at it-It has been a while since someone invited you out to dinner (you may be just starting dating after your divorce). Your immediate thought is what to wear, need my hair done etc. This means that you spend the best part of a week running around with the one thought in your mind “I must get this right”. You seem to have disappeared and you feel that you need to invent a new person to go on this date. In order to be that person you have to package yourself in some particular way. There must be some key that you can find, a particular dress, new haircut etc. You believe that you need to make yourself more appealing. 3.Thinking that you know the person-The evening has arrived

and you meet at the arranged restaurant (good step, as all the dating advice recommends that you meet in a public place). You are especially nervous and excited but also slightly uncomfortable because the shoes are new and you feel a bit wobbly in them. It is strange you recognise this person but at the same time you don’t. The voice you know that but he does not look like the person in the photograph, taller, shorter a bit heavier or gangly something is not as you imagined. Anyway he seems quite at ease but maybe that is just a contrast to how you are feeling. Initially conversation is going well as there are points of contact from your previous conversations but it isn’t going anywhere. By the main course you are starting to drink a little too much to fill in the silences. Your feet really hurt now and you are taking surreptitious glances at your watch – only 9 o’clock. No dessert thanks and by the way you have an early start in the office tomorrow so you have to go soon. Can’t think of anything but getting out of the shoes. Yes it was good, do call me…

DANIELLE 4.Fantasy – it’s only in your headNext day or later in the week, the emails/calls are still coming and you continue to respond. It’s a though you have never met and you can get on with the easy going repartee that has become almost a habit. In your mind he is something you want him to be, well not quite but you can have yourself believe that he is whilst you exchange messages and late night calls. You are starting to develop a whole life in your head around this person, you imagine where you can live with him, what you will do, holidays together in fact everything you ever want with someone. This is taking up a lot of head space but that is enjoyable in itself, you feel connected to someone if only in your mind.

I can’t expect to feel comfortable about everything immediately. He is suggesting dinner again, you don’t really want to but you are not sure what you want to do so you go along with it. You had arranged to see a girl-friend that night but you tell her you can’t make it, she seems a bit put-out but you put that thought aside. The second evening seems very long.

• Too much too soon – It is so tempting to put all your focus on one person at a time when you are looking to date on the internet. But it is important to remember that not only are all those people out there looking at numerous people at any one time but you could be too. If you put most of your time and energy into any one contact at a very early stage this means that you cannot scout, screen and

5.Not paying attention to the signals-A week or so more and you are becoming slightly irritated by the emails and are not responding quite so readily. But he asks you if you want to come out for another evening and that heart leaps to your throat again. You agree even though there is a vague memory of discomfort from the first meeting. Well you remind yourself that all the dating advice recommends that it is about getting to know someone. I can’t expect to feel comfort


DANIELLE sort other possible people. Dating Advice: Don’t make a big investment emotionally in any relationship without solid foundations. • Throwing money at it – Recent research has revealed that online daters are spending up to £1,500 a month taking out people who they realise, after the first 15 minutes are not for them. (Independent, June 2005) Remember be authentic, the packaging is only that and is not who you are. Meeting for a cup of coffee or a drink will give you enough time to assess whether this person is someone you want to know better. Dating Advice: Packaging is not the answer, be clear about who you are, what you want in a relationship and set about finding it in a consid-

ered way. • Thinking you know this person – We can easily be seduced by email conversations and late night telephone calls. Apart from the actual chemistry that is missing in these exchanges there is that part that you know very well yourself, where you just reveal what you want at any given time. If you know what your requirements are in a relationship this will help you assess quite quickly if this person is for you. Most of us allow things to just drift along and are not pro-active in having a plan for ourselves when it comes to relationships. Dating Advice: How is it we plan for everything except relationships? Take some time to plan what you want in a relationship before

you get into a habit or rut with someone. • Fantasy – it’s only in your head – It is very easy to live in the fantasy of a relationship even from a very early stage. After all that is why you have signed up on the dating site in the first place – you want a relationship. However, being truthful with yourself is easier if you have a relationship plan. Then you can ask yourself, from the information you have so far, does this person tick some of my boxes. If so then you can continue to find out more about them whilst finding out about other people at the same time. Projecting onto any one person, especially at a very early stage, all you hopes and dreams is likely to bring you some amount of pain and heartache when you find this isn’t going to work out. Dating Advice: Spread the emotional load by giving your attention to a number of people, it helps deal with the ups and downs of the dating cycle if you are not exclusive right from the start. • Not paying enough attention to the signals – it is amazing how quickly we can get ourselves into habits and relationships, however new, are one of those areas. We all like attention and contact with people but what about the rest of your life,


DANIELLE with a person who has a balanced life and that includes all the other activities and people in your life. Straining towards exclusivity at a very early stage and throwing all your time and attention towards the relationship can be a disaster. Dating Advice: Get out there and have any dating and relationships fit in with your life as a successful single. Know what your requirementsComputer Technology Articles, needs and wants are and look for someone who can meet these.


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