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Fumio Kishida backs Bank of Japan’s ultra-loose policy despite yen plunge

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Fumio Kishida backs Bank of Japan’s ultra-loose policy despite yen plunge

Fumio Kishida has signalled his assist for the Financial institution of Japan’s ultra-loose financial coverage regardless of the yen’s plunge to its lowest stage in actual phrases for the reason that Seventies.

In an interview with the Monetary Instances, the Japanese prime minister mentioned the central financial institution wanted to keep up its coverage till wages rose, and urged firms that do enhance costs to lift pay as effectively.

Kishida mentioned he would proceed to “work carefully” with Haruhiko Kuroda, ruling out hypothesis he would finish the BoJ governor’s time period prematurely or apply political stress to finish detrimental charges.

“For the time being, I’m not pondering of shortening his time period,” Kishida mentioned, referring to Kuroda’s 10-year tenure as BoJ governor, which can finish subsequent spring. “I’ll stay up for the anticipated financial situations of April subsequent yr in my deliberations on choosing the proper individual for the job.”

In a sign of how starkly the financial challenges in Japan distinction with these in different superior economies which are wrestling to guard the general public from runaway inflation, Kishida mentioned the nation wanted wage will increase somewhat than wage restraint.

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The federal government will put together measures to assist firms elevate salaries whilst they move on rising enter prices, Kishida mentioned. His feedback got here amid rising public concern about price of residing will increase and a pointy fall within the prime minister’s recognition.

“By passing on rising costs, we hope companies could have some latitude to lift wages,” he mentioned. “Previously, wage hikes had been considered as a value issue, however going ahead, firms must spend money on individuals for the economic system and for companies themselves to develop.”

The BoJ’s coverage stance, which has helped push the yen to a 24-year low in opposition to the greenback, will likely be offset by authorities measures to fight inflation and benefit from the weak yen to spice up exports and tourism.

The prime minister’s feedback adopted a risky interval for the yen and mounting hypothesis that after virtually a decade of unwavering dedication to its ultra-loose coverage, world turmoil may lastly power the BoJ to blink.

Shortly earlier than Kishida spoke to the FT, the yen fell to ¥145.60 in opposition to the greenback and to inside ¥0.30 of the extent at which the Japanese authorities intervened final month. Such efforts to strengthen the yen, which have price $20bn, could have little impact so long as the rate of interest differential between Japan and the US continues to widen, analysts warned.

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Japan has confronted the identical pressures because the US and Europe from the surge in world power and meals costs. However headline inflation stays comparatively low at 3 per cent since there was virtually no switch from value will increase to greater wages. The rise in power costs has additionally been partially offset by long-term contracts for Japan’s giant imports of liquefied pure fuel.

The BoJ has argued that underlying client demand within the Japanese economic system is weak and has predicted that inflation will fall again beneath 2 per cent within the subsequent fiscal yr.

Corporations, particularly the small and medium-sized companies that make use of 70 per cent of the workforce, have struggled to switch greater prices to customers, leading to pressures on income which have made it more durable for them to lift wages.

Following many years of on-and-off deflation, economists mentioned Japan may very well be on the cusp of a historic transition as the worldwide power disaster forces companies to lift the costs of their merchandise, creating pressures that may immediate staff to demand a pay rise.

“It’s onerous to place a determine on what stage of inflation is suitable,” Kishida mentioned. “However I strongly really feel that we might not be capable of preserve a sustainable economic system or shield individuals’s livelihoods with out seeing a hike in wages that’s commensurate with value rises.”

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Israel rescues four hostages in Gaza

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Israel rescues four hostages in Gaza

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Israel’s military freed four hostages held by Hamas in Gaza on Saturday after an operation in Nuseirat in the centre of the enclave.

The rescue of one woman and three men — Noa Argamani, Almog Meir Jan, Andrey Kozlov and Shlomi Ziv — brings the number of hostages brought back alive by Israel’s military to seven and is the largest rescue operation since the start of the war against Hamas.

The four were kidnapped from the Nova music festival in southern Israel during Hamas’s October 7 attack, in which militants killed 1,200 people, according to Israeli officials, and took about 250 hostage.

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Roughly half of the hostages were released during a truce last year in exchange for Palestinian prisoners held in Israeli jails.

Yoav Gallant, Israel’s defence minister, hailed the rescue and said Israel would “keep fighting” until the 120 hostages still held by Hamas in Gaza — 43 of whom are thought to have died — were brought home.

The Hostages Families Forum Headquarters, which represents relatives of the captives, welcomed the rescue as a “miraculous triumph”, and urged the government to “remember its commitment” to bring back all the hostages — “the living for rehabilitation, the murdered for burial”.

Health officials in Gaza said that the fighting in Nuseirat had caused “many” fatalities and injuries. A spokesman for Al Aqsa hospital in Deir Al Balah in central Gaza, said that so far 55 bodies and dozens of injured people had been brought to the hospital, and that “many” more were expected.

In the wake of the rescue operation, Benny Gantz, the former general and opposition politician who joined Netanayhu’s coalition in the wake of Hamas’s October 7 attack, cancelled an address scheduled for this evening. He had been widely expected to announce his departure from the government.

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Prime Minister Benjamin Netanyahu released a recording of himself speaking to Argamani after her rescue.

The spokesman for Israel’s military, Daniel Hagari, said the hostages had been rescued from two locations in Nuseirat by special forces in an operation at around 11am local time. All four were “alive and well” and would undergo medical checks in Israel.

The rescue comes as Israel is under mounting international pressure over the soaring civilian toll of its offensive in Gaza, which has killed more than 36,500 people, according to Palestinian officials, as well as stoking a humanitarian catastrophe.

Last month, the prosecutor of the International Criminal Court sought arrest warrants for Netanyahu and Gallant over the war, while the International Court of Justice ordered Israel to “immediately halt” its offensive in Rafah and allow more aid into Gaza.

On Friday it emerged that the UN had added the Israeli military to a list of countries and organisations that fail to protect children in conflict.

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The news sparked a furious response in Israel, with its ambassador to the UN, Gilad Erdan — who published a recording of himself receiving the news — describing the decision as “shameful”.

The Palestinian Authority welcomed the decision, saying “accountability is overdue”.

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Trump to escalate blame on trial judge Juan Merchan if sentenced to prison

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Trump to escalate blame on trial judge Juan Merchan if sentenced to prison

Donald Trump is determined to avoid jail, but if he does get handed a prison sentence after his conviction on 34 felony counts in New York last week, the former president’s inner circle is certain he will lay the blame squarely at the judge’s feet, sources familiar with the matter said.

The precise way Trump might blame the judge, Juan Merchan, remains unclear because Trump has been avoidant of the issue and the matter was not resolved when he huddled with his top advisers at a Trump Tower meeting immediately after the verdict on Thursday, the sources said.

But Trump is likely to double down on his attacks against Merchan, directing his supporters at rallies and in Truth Social posts to take up their grievances with the judge, one of the sources added.

The consequences of Trump’s likely rhetoric are difficult to predict. Trump has been railing against Merchan for months as being unfair and in conspiracy cahoots with the Biden administration to prevent him from campaigning – and nothing concrete has happened.

Still, Trump’s supporters have a history of making threats against judges Trump has assailed, including death threats to Tanya Chutkan, the US district judge who is presiding in his federal 2020 election interference case, and to the chambers of the New York judge who oversaw his civil fraud trial.

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Trump believes – correctly – that the ultimate decision with sentencing rests with Merchan, who has wide discretion to sentence him to fines or probation on the low end, to a carceral sentence on the high end, regardless of what prosecutors might request.

That reasoning would be the basis for Trump to hold the judge responsible for any fallout, in the event he hands down a jail term days before the Republican national convention – even if the sentence would almost certainly be stayed pending appeal.

Trump has already spent weeks railing against Merchan, taking advantage of the fact that the judge himself is not protected by the gag order. Both before and during the trial, Trump slammed the judge’s rulings as unfair and biased, and falsely suggested he was trying to stop him campaigning.

Just one day after the trial, Trump appeared to open a new front against Merchan in freewheeling remarks at a news conference at Trump Tower, where he suggested Merchan looked like an “angel” but was really the “devil”.

If a jail sentence does come, one of the sources said, they expected Trump to lash out in anger. But Trump has also been careful to not explicitly threaten or make foreboding warnings against Merchan to stave off prison.

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On Fox News Sunday, Trump said the public would not stand for him being sent to prison. “I’m not sure the public would stand for it. I think it would be tough for the public to take. At some point, there’s a breaking point”, he said, though the campaign was quick to clarify he was talking about the election.

To some degree, Trump has managed to put Merchan exactly where he wants him.

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Trump was in effect found guilty of using an unlawful hush-money scheme to influence the outcome of the 2016 election, which means if Merchan sentences him to anything less than jail, it could spark backlash that it did not encapsulate the gravity of Trump’s criminal conduct.

But if Merchan does actually sentence Trump to jail, the judge would be thrust forward by Trump as responsible for any fallout and any unrest from his supporters who have a history of engaging in political violence merely on the former president airing grievances.

At sentencing, Merchan will have the additional decision of whether to punish Trump not just for the conviction but also his clear lack of remorse and his repeated violations of the gag order, which would be reflected in Trump’s pre-sentencing report.

In New York, defendants convicted of felonies or serious misdemeanors are required to meet with a probation officer, who conducts a lengthy investigation and compiles a pre-sentencing report that the judge uses to determine what sentence to issue.

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The pre-sentencing report is typically one major opportunity that defendants have to make a good impression on the judge, including by expressing contrition. Trump has suggested none of that since his conviction, including by attacking the verdict the very next day.

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Way off the beaten track in Brazil’s diamond country

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Way off the beaten track in Brazil’s diamond country

Rain pummelled the roof of my tent, the sound mingling with the thunder of a nearby waterfall. After 10 days on the trail I had no clothes that weren’t damp and stinking. Ticks and mosquitoes had besieged my arms and legs. I lay in the dripping dark, wondering how it had come to this. Once upon a time, luxury travel was about gold taps and chocolates on the pillow. Of course, the genre has widened to include ever more exclusive and unusual experiences — but physical discomfort and insect bites were never part of the equation. 

I first encountered Gift of Go through its sprawling, lavishly illustrated website, which pitched the company as something of an antidote to a travel industry dedicated to commodifying adventure. Rather than selling “carefully crafted authenticity and readily collectible ‘once-in-a-lifetime’ experiences” this new company promised “true stories” and “the most compelling journeys on earth” — albeit at sky-high prices.

Paul Richardson and co-founder of Gift of Go Elisa Oliveira, centre, with some of the horsemen at a chapel in the village of Macacos © Eddie Lott

Gift of Go is the creation of Eddie Lott, 43, a Texan, and his wife Elisa Oliveira, 32, travel-industry newcomers based in the small town of Diamantina in northern Minas Gerais. Launched this year after three years of research and planning, the company’s trips include a 28-day expedition on foot and horseback in Brazil’s Serra do Espinhaço — a vast and little-visited mountain wilderness in the former diamond-mining region of Minas Gerais. Guests camp or stay in village houses, and pay a very luxurious-sounding $2,000 per person, per day, for the privilege.  

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Towards the end of 2023 I interviewed the couple several times by Zoom. Little did I know that in fact it was me who was being assessed — for my state of health, level of trekking experience, and general suitability to join them as a guinea pig on a condensed version of their 28-day trip, entitled “Diamonds/Wild Tales + Lost Trails”. Condensed it might be, but it was still a two-week journey through some very tough terrain indeed. 

Then the packing list arrived. It spoke volumes, but also opened up whole new vistas of doubt and trepidation. Sleeping mats, headlamps and heavy-duty bug sprays were all required. Clothes were to be soaked in liquid permethrin, a powerful insect repellent, to ward off ticks. Much of the modern language of hiking gear was foreign to me, but there were words even I could recognise — like “snakes”. A pair of wraparound gaiters for protection against the region’s venomous serpents, which tend to attack at shin-level, was apparently essential.  

I flew in to São Paulo and took a connecting flight to Belo Horizonte, state capital of Minas Gerais, where Lott and Oliveira picked me up for the four-hour drive north to Diamantina. For 200 years during the Portuguese colonial era this small town was a global centre of the diamond trade. The rivers of northern Minas were dredged for gold and precious stones using slave labour, these riches being funnelled directly into the coffers of the Portuguese crown. With the final decline of the local diamond trade in the late 20th century, the region fell into grinding rural poverty and chronic depopulation.

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A view of a vast green landscape and a distant mountain
The peak of Itambé as seen from Pico do Raio, with the landscape of the cerrado in between © Eddie Lott
A trail of two tyre tracks leading down a hill into the distance
A dirt track in the Serra do Espinhaço
A ball-shaped flower formed of thousands of stems with small white heads
A paepalanthus, emblematic flower of the Serra do Espinhaço © Eddie Lott

What remains is its huge and almost entirely unexploited natural landscape. Today the conservation areas of the Serra do Espinhaço include a national park, various state parks and other reserves, adding up to more than 150,000ha of protected land. Our great trek’s (very roughly) circular route would take us south and east out of Diamantina into the back country along the Jequitinhonha river valley, moving up into the highlands of Rio Preto State Park and plunging into the immensity of Sempre Vivas National Park before looping back towards Diamantina and civilisation. This was, explained Lott, not only among the most sparsely populated regions anywhere in Brazil, but had almost no tourist infrastructure either.

Early on an April morning we left São Gonçalo do Rio das Pedras, a low-rise colonial village where a rustic pousada would be the last conventional accommodation I’d be seeing for a while, heading into wide-open country where white sand trails once used by mule-riding tropeiros (commercial travellers) meandered between rocky uplands. Accompanying us was Julio Brabo, a local geologist, geographer and trail guide with a wide-ranging knowledge of the Serra do Espinhaço in all its grandeur and complexity. Understanding these surroundings meant learning from Brabo about the various biomes we’d be traversing, such as mata atlântica, the broadleaved forest typical of southern and eastern Brazil, and cerrado, a rocky savannah of tremendous biodiversity. 

After a long wet summer a blazing sun had kick-started the Serra into exuberant life. The cerrado was exploding in blasts of purple, yellow, white, and Barbie pink. By the side of the trail lay a bunch of small white sempre-viva flowers with a button-like shape and long thin stems, seemingly left there to dry. Sempre-viva is highly valued by the international floristry trade, said Brabo, and gathering the flowers provides a source of revenue for the hardscrabble rural communities on the outer edges of the Serra.

Water tumbles off the side of a cliff sending white spray into the air
One of the many hidden waterfalls in Sempre Vivas National Park © Eddie Lott
Men sit drinking around a camp fire in the dark
Julio Brabo, a geologist and trail guide with a wide-ranging knowledge of the Serra do Espinhaço, with some locals
A coffee cup and a flask perched on a rock
Coffee served in a cave used by flower-pickers © Eddie Lott

Our walking fell into a quick, steady rhythm. The four of us moved ahead in single file, scrambling up rough hillsides of quartzite rock, fording streams and picking through boggy meadows. As we went, Lott told me tales of his days as a backpacking wanderer in Central and South America, his recycling business in Dallas, Texas, and his career as a singer-songwriter (his 2015 album “Blame It On My Wild Soul” is still streaming on Spotify). Oliveira, an architect by training, was born and raised in Minas Gerais.

Lott had driven through the region in 2013 and, when he stopped at a gas station, took a photo of the lush green surroundings. When the image popped up as an automated “memory” on his phone a few years later, he decided to return to explore. “That was the start of my relationship with the Espinhaço,” he says. “It was hard going, but amazing and beautiful. It was so remote. And best of all, there was nobody here.”


From the top of Pico do Raio at 1,405 metres, massive views stretched to a bluish horizon. The silence up here was deep and viscous. Flocks of yellow and black swallowtail butterflies fluttered ecstatically around the summit. After a hard climb my breath came in gasps, my heart thumping over billows of nausea. If this was described in the itinerary as an “easy” 25km day, I reflected nervously, how on earth would I cope with a difficult one?

A man sits at the wheel of a van
Gift of Go’s support vehicle, a 1989 Toyota Bandeirante, with driver Natanael ‘Xaxau’ Nardis © Eddie Lott

The answer would come soon enough. Out in this untrammelled wilderness there would be moments of exhaustion, but also of exhilaration, such as I’d never known in a lifetime of travel. Some nights we slept in tents in forest clearings or on white-sand river beaches. Other times our lodgings were dirt-floored adobe houses in remote hamlets. Especially when the going got tough, I privately wondered about Gift of Go’s business model and its potential clientele — both willing and able to take on this spartan travel regime, and happy to pay for it to the tune of $2000 a day, or even more for the bespoke trips on offer. For many years Lott had had in mind the idea of offering “transformative journeys” in off-the-map places. The course he took at the Boulder Outdoor Survival School (BOSS), a survival-skills centre in the Utah desert where he shared water rations with multi-millionaire executives, suggested there might be a niche market for this kind of hardcore adventure tourism.

Day five was a 31k monster. After reveille at 4am and a breakfast of sweet black coffee and biscuits, we set off along a valley where giant mango trees stood like oaks and humpbacked cattle grazed the verdant meadows. Grey crags in phantasmagorical, eroded forms thrust themselves out of the landscape; up ahead loomed the forbidding, flat-topped peak of Itambé (2052 metres).

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“Where in Europe does this scene remind you of?” asked Lott. I racked my brain, but his question went unanswered. Everything here was new and strange; nothing lay within my frame of reference.

A view down a sloping rock face towards hills and a sunset
Sunset at the Santa Bárbara waterfall © Eddie Lott
Riding gear hanging on nails on the wall of a shed, with bound flowers
Still-life at a remote farm, with drying sempre-viva flowers
A couple stand in the bright-green frame of a window of their home
Santos and Maria Conceiçao, at their home in Bica d’Agua, a stop enroute © Eddie Lott

A rushing sound in the distance might be one of two things: a breeze blowing through the waving indaiá palms, or a fast-flowing river with waters whose natural tannins stained them the colour of Coca-Cola. Sometimes we’d stop beside one of these rivers to sling off our backpacks, fill up our water bottles, and nibble on Brazilian trail food like banana bars and biscoitinho, a weirdly addictive tapioca puff.

Dusk was falling when we pitched up at the house of Santos Evaristo and Maria da Conceiçao Aguiar, an elderly couple belonging to the Espinhaço’s ever-decreasing population of subsistence farmers. From the valley bottom came the rumble of a waterfall. At the farmhouse Maria bustled barefoot around her earth-floored kitchen. On a wood-fired range sat bubbling pans of frango caipira (chicken stew), costelinha (braised pork ribs), fried okra, beans, and the polenta-like maize porridge angú — the ribsticking repertoire of traditional mineiro cooking. Ravenous with hunger, we piled our tin plates high while Santos, wearing a battered cowboy hat and a grizzled moustache, handed round jam jars full of home-made cachaça.

Men try to free a jeep tilted sideways in a gully
The back-up Bandeirante, a 1989 Toyota 4×4 with a Mercedes engine, gets stuck in the mud in Sempre Vivas National Park © Eddie Lott
A man cuts his way through dense growth
Eddie Lott in bushwhacking mode in Sempre Vivas National Park © Eddie Lott

We would need all the sustenance we could get. Jewel in the crown of northern Minas’ conservation areas is the mighty Sempre Vivas National Park, which covers an area the size of Los Angeles but whose inhabitants could be counted (said Lott) on the fingers of two hands. It was here, I found, that the demands of the trek were at their harshest. In the taquaral, a dense bamboo forest at the heart of the park, the trails had grown over and Lott began bushwhacking to left and right with a machete like a real-life Indiana Jones. Careful with the unha de gato, said Oliveira: the fearful spines of the “cat’s claw” creeper can rip your flesh open. Despite the permethrin, clumps of tiny ticks had begun to appear around my waist and thighs.

Unlike the usual run of high-end adventure operators, Gift of Go doesn’t do glamping, Aman-style luxe-in-the-middle-of-nowhere, or surprise-and-delight dinners with white linen tablecloths in stunning locations. (Though Lott’s veggie risotto, cooked on a calor-gas burner poised on a boulder, wasn’t bad at all.) Bathing possibilities were reduced (or increased) to a dip in the river. Toilet facilities involved wandering a discreet distance from the camp with a trowel in hand, keeping a weather eye out for snakes.

Two men walk along a trail some distance apart. A cow stands at the side of the road
Walking along a hidden valley on day three © Eddie Lott
Water runs down the side of rocks into a dark green pool
A remote waterfall in Pico do Itambé State Park © Eddie Lott

Yet there were many compensations. Various sections of the trek were undertaken on mules and horses provided by local cowboys, and one evening we made a memorable four-hour descent from the high plains of Sempre Vivas to the village of Curimataí, my sure-footed mule picking its way down a perilous stony gorge under a refulgent moon.   

Another great pay-off was chasing waterfalls. The Serra do Espinhaço is prodigal in the number and magnificence of its cachoeiras or waterfalls, some of which are so inaccessible they may not have been visited for years. At one nameless wonder, reached by a tortuous trail through thick scrub, we clambered down to lounge at the base of the falls, awestruck by the water’s howling roar and the savage beauty of this lost world.

In the mud-spattered settlement of Quartéis we spent our last night on the fringes of the Espinhaço. In our two weeks of tramping the trails of the Serra, extraordinary as it seemed, we’d seen not a single fellow traveller. This was the land that not only time, but also tourism, had forgotten.

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We stumbled back into Diamantina on a Saturday night when the town was brimful of visitors for the Vesperata, a festival with local bandsmen playing from the balconies. Feeling out of place in our sweaty, grimy clothes, we wandered the cobbled streets, thinking how overdressed and overfed these party people looked and how the Espinhaço’s ragged, rugged wilderness already seemed half a world away.

A large crowd gather in a square lit at night, listening to and dancing to music
The Vesperata music festival in Diamantina © Eddie Lott

I would miss our little gang of four. Lott and Oliveira plan to maintain the intimate, hands-on vibe of their fledgling company, guiding the trips in person and keeping guest numbers down to a single individual or small group. But what about the price? Is this simply a company selling backpacking to the very well-off? While admitting the rates might be “uncommon”, Lott argues they are fair given the client/staff ratio and remote locations. Each trip has five full-time staff and between five and 15 more part-time helpers, horsemen, cooks and so on. “Each one is highly personalised and crafted — and we only guide very few per year.” For Gift of Go’s next phase he is turning his attention to two more of the world’s untouristed places: the Darién Gap on the Panama/Colombia border, and the lonely deserts of Big Bend Country where in south west Texas bumps up against northern Mexico. 

Certainly this trek in the Brazilian highlands had been unlike any journey I’d undertaken. The challenges it posed had left me tired and four kilos lighter than when I’d started, but there was also a deep satisfaction and a new confidence in my capacity for physical endurance. I thought of those Shakespeare plays where characters go into a wood and emerge lightly bruised by their adventures, but permanently wiser.

Paul Richardson was a guest of Gift of Go (thegiftofgo.com)

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