Review: Capitalism 3.0–A Guide to Reclaiming the Commons

4 Star, Capitalism (Good & Bad)
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Coherent and Simple, Not the Whole Story,

December 27, 2006
Peter Barnes
I concur with all the 5 star reviews with respect to this book presenting a vision for the next level of capitalism nurturing the commons rather than destroying it, but it is not the whole story. It is simple without being simplistic, but the terms “ecological economics” (see my reviews of books by Herman Daly) and “natural capitalism (see my reviews of books by Paul Hawken) are not an integral part of this story. Neither is public philosophy, although the author clearly has an ethical public policy of his own.

Like the work of Paul Hawken, Amory Lovins, Hunter Lovins, and Herman Daly, it does not accuse nor seek repatriation of benefits as much as it seeks to educate and demonstrate why respect for the commons is good for business.

I recommend Michael Sandel's “Public Philosophy: Essays on Morality in Politics,” and Paul Hawken's “The Ecology of Commerce,” in addition to this book, but those deeply interested in this topic might wish to expand their range by browsing some of my lists on democracy, capitalism, and security.

The book ends with numerous ideas, some easy to implement, like time banks (I see a rush to displace banks, money, credit, and interest coming down the pike), and some more difficult but essential, such as reversing the spectrum licenses and land licenses awarded to corporations under Capitalism 1.0, and putting those resources to work for all of the people.

The author spends some time noting that government is not the complete answer, and I not only agree, I am eagerly waiting for a book called Government 3.0 or Democracy 3.0, something that brings together the diverse literature on the need to localize agriculture and energy again, stop the global corporations, e.g. Wal-Mart, from destroying communities, and restore integrity and trust in human transactions. In a sense, this book is a model that could be applied to other areas in need of revitalization.

Public Philosophy: Essays on Morality in Politics
The Ecology of Commerce
Ecological Economics: Principles And Applications
Natural Capitalism: Creating the Next Industrial Revolution
Blessed Unrest: How the Largest Movement in the World Came into Being and Why No One Saw It Coming
Wal-mart: The High Cost of Low Price
Wal-Mart: The High Cost of Low Price

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Review: Radical Middle–The Politics We Need Now

4 Star, Democracy, Politics

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Superb Personal Effort, Fits in With Other Vital Contributions,

December 23, 2006

Mark Satin

I like this book very much. It is a cry from the heart–from a very informed heart–and it captures much that needs to be understood. It is not, however, the first effort in this direction. This book was published in 2004. Paul Ray and Sherry Ruth Anderson published “The Cultural Creatives: How 50 Million People are Changing the World” in 2000, coincident with the appearance of Marianne Williamson's extraordinary edited work, “IMAGINE: What American Could be in the 21st Century.” Ted Halstead and Michael Lind published “The Radical Center: The Future of American Politics,” in 2001. In 2002 Ralph Nader capped off decades of activism along these lines with “Crashing the Party: How to Tell the Truth and Run for President.” In 2003 we had Matthew Miller's “The 2% Solution: Fixing America's Problem in Ways Liberals and Conservatives Can Love.” See my reviews of all of those, and my list on democracy, to appreciate this book by this author, in a larger context.

The most important meme to come out to me–an aggressive iconoclast if ever there was one–dealt with the importance of turning away from rebellion for the sake of rebellion, and focusing instead of being a player, on bringing corporations to the table as Paul Hawken and others suggest in “Natural Capitalism” (which the author cites).

Early messages from this book include: Ignore the noise including Moore and Franken; Creative borrowing from all points of view to achieve public policy; Radical middle provides concrete answers instead of platitudes; Work with corporations instead of attacking them blindly; Idealism without the illusions. Four on key values: maximize choices, fair start for all, maximize human potential, help the developing world. The author then gives us four sections, with the highlights listed below.

Maximizing choices:
1) Universal health care that is also preventive and integrative
2) Law reform–affordable, meaningful
3) End oil dependency–parallel energies, seven paths (conservation, renewables, fossil fuels, hydrogen, nuclear, biobased, and values-change path

Fair start
1) great teachers (overlooks two-parent family, serious games, total change to curriculum)
2) affirmative action with teeth, not just letting in black-skinned white minds
3) Job for everyone and a financial next egg as well

Maximize human potential
1) corporations we can be proud of
2) biotech with adult supervision
3) bring back the draft–for EVERYONE (one of the best pieces)

Help the developed world
1) Globalization with savvy and feeling (address poverty, raise standards)
2) Make the WTO transparent
3) Humanitarian intervention in time–no more genocides (great piece)
4) Tough on terrorism and causes of terrorism

Be a player not a rebel
1) professional schools, not radical groups, are our incubators now (compassionate MDs, holistic MBAs, visionary JDs,
2) stay informed
3) join groups that matter and push them to the middle
4) run for office
5) open up the political process (free media, tax credits, proportional representation, instant run-offs, non-partisan redistricting,

Just this morning, a friend in Seattle sent me an email about a new meme that goes beyond the split between “for profit” and “non-profit” to speak of “new profit.” That is the distillation of what Paul Hawken and Herman Daly (“Ecological Economics”) are trying to capture. The old concept of corporate profit loots the commons. The new concept of profit, what I call Communal Capitalism, others call it Capitalism 3.0 or Natural Capitalism, understands that true profit must be perpetual and distributed.

This author has a following and is part of the solution. I recommend all the books I listed above, and this one.

See also:
A Power Governments Cannot Suppress
Society's Breakthrough!: Releasing Essential Wisdom and Virtue in All the People
The Two Percent Solution: Fixing America's Problems in Ways Liberals and Conservatives Can Love
The Radical Center: The Future of American Politics
The Cultural Creatives: How 50 Million People Are Changing the World

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Review: Off the Books–The Underground Economy of the Urban Poor

4 Star, Capitalism (Good & Bad), Civil Society, Culture, Research, Economics, Peace, Poverty, & Middle Class

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Superb, Of Lasting Value, Next Edition Should Include Some Appendices,

December 18, 2006
Sudhir Alladi Venkatesh

Robert Daniels review is useful. What stayed with me on this book is that we have let our urban poor down, over and over, and while they have created an underground community and a web of relationships that span the licit and illicit, they will never rise above that bare bones existence in the absence of substantial structured help.

The author draws on others to estimate that this community across the land could be responsible for at least 75 billion a year in unpaid taxes.

A few vital phrases:

“no one took (even) a few dollars for granted.”

this is a community with an intricate set of protocols for survival on the edge of the law and the edge of the economy

clergy plays a critical role as both brokers and clients for services; mothers as single heads of households are part of block committees that can negotiate complex and very specific arrangements with gangs, police, and others.

$50 in food stamps was worth (2001-2003) $75 in car repairs or $30 in beer.

The webs of relationships overcome any differences between licit and illicit. ANY form of income is respected and prized.

Informal credit a necessary social capital that replaced structured credit.

The night spaces are used by traders, regulators, and predators.

The chapter on the priests and block mothers was especially great. The author identified three blocks of preachers doing three different roles: brokering disputes in the illicit and licit local world; serving as part time work or exchange brokers for the working poor; and serving as outreach to the police and other communities, e.g. the adjacent white middle class community whose preachers could pass the word on available service jobs with specific families.

The bottom line is clear: even the most desperate, if they are resilient, can survive and find some form of happiness, but we have let them down. As I write this, Wall Street is giving out tens of billions in bonuses to its employees, the US Government is mounting the worst deficit and combined national debt in history, and the Navy and the Air Force are continuing to demand new carriers and long-range bombers while our troops on the ground lack showers, hot food, comfortable quarters, and safe vehicles–as well as an attentive responsible government (at the top–I never mean to be critical of the good people trapped in this terribly screwed up mess we call the federal government).

This is a serious useful accomplishment. Other books I recommend include ILLICIT by Moises Naim, “The Working Poor” by David Shipler, “Nickled and Dimed” by Barbara Ehrenreich, and “The Global Class War” by Jeff Faux, see my reviews of each for a quick insight into those authors' very valuable complementary views.

My only dismay is that this book is missing the icing. I would have loved to see some figures, maps, charts that visualized the substance. The comparison of the value of food stamps to car repair to beer is priceless. Most of these people barely made $750 a month. I sense that the author was exhausted by this effort and slowed to a walk as the book came to completion–should it be re-issued, and I expect it will be as I consider it to be scholarship of lasting value, I would like to see some really excellent charts, extrapolations, and visualizations.

A really fine piece of work, well worth reading along with the other books mentioned above.

See also, with reviews:
The Working Poor: Invisible in America
Nickel and Dimed: On (Not) Getting By in America
Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich
All the Money in the World: How the Forbes 400 Make–and Spend–Their Fortunes

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Review: Hope of the Wicked

5 Star, Capitalism (Good & Bad), Economics, Environment (Solutions), Nature, Diet, Memetics, Design, Survival & Sustainment, Values, Ethics, Sustainable Evolution

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Essential Foundation for Understanding Worst Case View,

December 18, 2006

Ted Flynn

I was asked recently if I had fallen in with the conspiracy theorists, and my answer was no, I had not, but in my very broad reading, had come to realize that they represent a very important alternative view of reality without which one cannot ably evaluate current threats, policies, and relationships. The invasion of Iraq and our continued occupation of that country, for example, is either sheer stupidity by the White House, or a stroke of genius, depending on your hidden agenda.

I truly respect this author and this book, and along with Crossing the Rubicon and Rule by Secrecy, would put it way up there among the books from this point of view.

Personally I believe that the US Government is populated by good people trapped in a bad system, and that most laws have dual purposes–one as understood by the rank and file in government, the larger one at the very highest levels where the White House and the Wall Street elite (a handful of individuals) speak in studied privacy.

The author is completely correct to point out that war is a foundation for profit at the highest levels, where the banks will support both sides and be the only winners. I would reinforce the author by pointing toward General Smedley Butler's book, War Is a Racket: The Anti-War Classic by America's Most Decorated General, Two Other Anti=Interventionist Tracts, and Photographs from the Horror of It and the DVD Why We Fight.

There are other good reviews of the substance of this book, so I want to focus this review on an emerging Collective Intelligence/Natural Capital line of thinking. Collective Intelligence represents to power of the people to attack themselves like leeches to specific corporations and out their misdeeds and bad practices in detail. Natural Capital, something that Paul Hawken has been pursuing since he first helped write Seven Tomorrows and later the The Ecology of Commerce, suggests that the commercial world can only be saved–can only achieve sustainable long-term profitability–if it goes green to both reduce its impact on the environment and to offer the public genuinely intelligent design.

The more I read in this literature, the more I am persuaded that it is both correct and reaching critical mass, yet at the same time, I perceive a positive possibility that the Exxons and Goldman Sachs of this world may finally be on the verge of realizing that if they do not reform themselves, they will be put out of business by a global informed public.

So I would end by saying that this book, and Natural Capitalism: Creating the Next Industrial Revolution are bookends for the public mind, both essential, neither complete in and of itself.

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Review: Cradle to Cradle–Remaking the Way We Make Things

4 Star, Capitalism (Good & Bad), Economics, Environment (Solutions), Intelligence (Commercial), Nature, Diet, Memetics, Design, Survival & Sustainment, Values, Ethics, Sustainable Evolution

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Hawken & Pals Better, But These Authors Are Part of the A Team,

December 14, 2006
William McDonough,  Michael Braungart

Warning. This is a plastic book (recycled something other than paper, waterproof). A pen smears, so plan to use a pencil if you are a normal person who reads serious books with an annotating hand. It is a fast light read, and in some ways I think the authors do not do their pioneering work full justice.

It was very helpful to me to have first read Paul Hawken's books (with his co-authors–see my reviews for a fast overview), namely Seven Tomorrows, The Ecology of Commerce, and Natural Capitalism. With that background, and of course having read Limits to Growth and related works in the 1970's, I found these authors to be impressive, coherent, and on target. HOWEVER, someone without that broader background could possibly find this book facile and unpersuasive if not somewhat opaque, which would be unfair to the authors. They are brilliant and merit our attention.

The book opens with a review of the industrial era which is characterized by cradle to grave design, meaning all things are designed for eventual disposal, generally at the taxpayers' expense and without regard to the natural capital cost of what was produced. This era, as the authors describe it, has been characterized by one size fits all planning (which wastes enormously on diverse points along the spectrum of actual need); by design for worst case conditions (more waste when they do not materialize 80% of the time); by the application of brute force to the land (with all that implies in energy consumption); by a monoculture concept (lawns with pesticide instead of natural gardens as eco-systems), and relatively crude products.

The authors' bottom lines here are that being less bad is not good enough, because in a closed system you can only go so far in relegating stuff to a grave, eventually the whole Earth will be one massive grave.

The four R's, and they give credit throughout the book to others, are Reduce, Reuse, Recycle, and Regulate.

They are very specific in stating that downcycling is not true recycling, and most often leads to a cumulative increase of toxins with each reuse.

They are conscious of and discuss conflicting views of growth, but like Paul Hawken, they are clearly pro-business and articulate in pointing out that if Henry Ford can see the value of going green, then all businesses should take this general message seriously: sustainable profit is ONLY possible if you go green.

They distinguish between biological recycling and technical recycling. Although many more examples could have been provided of both processes being successfully implemented, they go far enough to be understood on this point.

“Clean” water is not so clean after all. Just as fish are absorbing and passing on to human very high levels of mercury, so also is even the cleanest of water being found to be contaminated in alarming ways.

The authors conclude that it is possible to design cradle to cradle products if one commits to converting the products into leased services, with the “producer” being responsible for taking any given product back for proper and full recycling. This gives the producer every incentive for designing products that can be easily broken down, re-used, and purified of all toxins from cradle to cradle.

The localizing of processes, but especially of waste treatment, is another theme that runs strongly here. Not only can neighborhoods create aquatic biological localized waste treatment processes that are beautiful and natural, but since the water they drink comes out the other end, they are individually incentivized to avoid dropping toxins into the natural waste system.

The authors have a triangle comprised of Energy, Equity, and Economy, and without getting into the public philosophy (see my review of the book by that title), suggest that the three must go forward together.

They point out that feedback is important, that information improvements can contribute a great deal to our making progress along the lines they suggest, with business being the greatest beneficiary.

The book concludes with five steps and five guiding principles.

The five steps are:
1) Get rid of known toxins and culprits in every product and service
2) Follow informed personal preferences
3) Do detailed analysis of the positive, neutral, and negative components of any product or process
4) Design around the positive
5) Reinvent constantly–exceed the first fix again and again

The five guiding principles are:
1) Signal intention
2) Restore, restore, restore
3) Innovate and keep innovating
4) Understand and prepare for the learning curve of the client
5) Exert inter-generational (sustainable) responsibility

This is not a good book to read in isolation. It earned four stars because of the authors' proven accomplishments, but the book I wish they had written would have had much more substance of successful natural designs from the past, and proposed new designs for neighborhoods, townships, rural areas, and cities as well as factories. It would be quite interesting for these two authors to create a book on “Designing Forever: The Way It Needs to Be.” If they write it, I will buy it and review it here at Amazon.

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Review: Seven Tomorrows

5 Star, Change & Innovation, Environment (Solutions), Future, Survival & Sustainment, True Cost & Toxicity, Values, Ethics, Sustainable Evolution

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Published in 1982, Relevant Today and Proven with Time,

December 13, 2006
Paul Hawken
I am finding that many of the books from the 1970's and 1980's that focused on Limits to Growth, the global reach of multinational corporations, the dangers of centralized financial power, are all becoming accutely relevant now. They were a quarter century before the mainstream, and are now ready to be accepted and acted on by at least 80 million in the USA alone.

This is such a book. It focuses on five “driving trends”: energy, climate, food, the economy, and values. The latter is especially important, as we discover that our failure to adapt our educational systems, and our failure to *have* national values, insisting on government being “neutral,” has actually made us hollow and vulnerable.

The set the stage by listing key factors that today are much more worse: diverse social values, a turbulent world devoid of the stabilizing influence of the Cold War, slow energy growth, burdensome debt (who could have imagined what Bush-Cheney would do), an aging population, slowing economic growth, a social legacy of distrust (which also increases the costs of doing business), no end to crime (now $2 trillion a year, which along with $2 trillion in waste, makes the remaining $5 trillion in legal economics seem much devalued), continuing environmental degradation, rising level of disease and related costs, and deterioration of soil (meaning topsoil, which pesticides have now poisoned).

The authors had no way of knowing in 1982 that in 2006 the High Level Threat Panel of the United Nations would identify the ten global threats as poverty, infectuous disease, environmental degradation, inter-state conflict, civil war, genocide, other atrocities, proliferation, terrorism, and transnational crime. For the cost of this book in 1982, we could have saved a quarter century of loss had the adults at the time been willing to listen.

In the manner made so internationally respected by Peter Schwartz, who is one of the three authors, the book then posits a positive, middle of the road, and negative future for each of the five driving trends, and from that combination, then derives the seven scenarios that are ours to choose from:

1) The Official Future
2) The Center Holds
3) Mature Calm
4) Chronic Breakdown
5) Apocalyptic Transformation
6) Beginnings of Sorrow
7) Living Within Our Means

Each is discussed in detail, including tables showing specific countries likely to prosper or decline, and specific occupations likely to be in demand or face extinction.

The book ends with a discussion of cultural economics and why values matter, and provides at the end three tables of values as the authors anticipated they would be among a Right Wing, a Left Wing, and a Transformation Alternative. The latter, contrary to my expectations, is not a balanced reasoned transpartisan value system, but one that romanticizes some aspects and ignores other (e.g. crime and national-level threats including poverty).

The author first posit an emphasis on decentralization (today I use the word localization) and also address the dangers of moving so far in favor of individualism that the good of the group is lost sight of.

The bibliography is as fine a list of important books from the decade preceeding the publication of this book as to be worthy of study on its own merits.

I put the book down lamenting how ill-suited our current systems of governance and business are to the need for listening to reasonable people who can actually forecast the future and warn us of the dire consequences. Peak Oil was well known in 1974-1979, but because of the values in place, the Senate and the oil companies felt they could ignore the problem and deceive the majority of the people–the many who did not read or think about such matters, postponing the day of reckoning, which is today, and dramatically reducing our flexibility while increasing the cost to future generations of the remedial measures.

This book is still relevant, and indeed all the more enjoyable in the context of the two latest books by Paul Hawkins and friends, and the forthcoming book “Blessed Unrest.” I was fortunate to buy this book from a third party through Amazon, and am quite pleased to have it for its current value as well as its tangible demonstration that we did indeed have smart people a quarter century ago who knew exactly where we would end up if we continue with “the official story” of endless growth without regard to the “natural capital” of the planet.

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Review: Natural Capitalism–Creating the Next Industrial Revolution

6 Star Top 10%, Capitalism (Good & Bad), Economics, Future, Nature, Diet, Memetics, Design, Values, Ethics, Sustainable Evolution

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The One Book That Can Save Capitalism & The Planet,

December 12, 2006
Paul Hawken
Edit of 19 Jan 08 to add links.

This book is pro-business, pro-market, and pro-life. It outlines how profits can be made by going green and getting in touch with the actual cost of goods and services. It demonstrates how efficiencies can produce a 71% per year after tax Return on Investment (ROI).

On page 261, the following quote summarizes the intellectual victory that this book represents over economic fundamentalism: “That theology treats living things as dead, nature as a nuisance, several billion years' design experience as casually discard able, and the future as worthless.”

The three authors are “originals” whose genius dates back to the 1980's, and I am finding that the books written in the 1970's and 1980's were a quarter-century before their time of acceptance, and now pressing urgent and relevant.

They advocate a shift from a production economy that disregards the actual costs of goods, toward a service economy in which durability, ease of repair, and the elimination of waste transforms commerce so that we have sustainable profit, not short-term destructive profit.

The basic premise of the book is that in the next 100 years the population will double while available natural resources will drop by one half to three quarters.

The authors are damningly trenchant when they point out that we have taken just 300 years to consume 3.8 billion years of natural capital by turning scarce resources into permanent waste.

I am at one with these authors when they suggest that labor is now abundant–I for one believe that national leaders must demand full employment and cease substituting technology, which requires natural capital, for human capital. We need to reverse the process and restore full employment, community-based resource allocation.

In the course of two days with this book, I pulled 21 key ideas that I list here in tribute to these authors and their work:

1) Cars can generate electricity during the 90% of the time they are parked, and this will allow the replacement of ALL coal and nuclear plants

2) We waste 1 million pounds per person per year in the USA

3) Authors are saving business, not fighting business

4) Two trillion out of nine trillion in the total economy per year is waste of no value, including time spent in automobile gridlock

5) Real-time feedback is the number one resource saver

6) Biological processes create Kevlar strength silk (spiders) and walls (oysters)–we should emulate them instead of continuing our toxic ways.

7) Green buildings increase human productivity while reducing waste

8) Continuous education of designers and engineers is the single best investment for continually updating our ability to eliminate waste

9) Point to point air travel in smaller more numerous aircraft is a much more efficient alterative to the hub systems

10) We must end our perverse subsidies of wasteful agricultural, energy, forestry, fishery and other harmful practices by publicizing the foolish budget allocations

11) We should tax pollution and waste rather than income

12) Agricultural residues can be used to make paper, which can be recycled and substituted (e.g. electronic). We must end junk mail and unneeded packaging that outlasts its contents.

13) Restore localized agriculture, deep sustainable farming that does not deplete topsoil, get smart on water and fuel consumption.

14) Get a national water policy and water education, recover all rain (which can meet all of Africa's needs), use gray water; get a grip on toilets to include separate capture of urine and feces.

15) Protect the climate

16) Conserving energy is cheaper, faster, better than trying to produce more

17) Canceling or updating antiquated laws long overdue (for example, giving away billions of gold based on 1800 laws, for pennies)

18) Adjust prices to reflect external costs

19) Implement no fault insurance purchased at the pump

20) Create information feedback loops at all levels

21) Need systemic approach (what I call the ten threats, twelve policies, eight challengers) to avoid unintended spill-over consequences

22) The market cannot do it all. We need government.

Above all intelligence and information can make this happen. Simply labeling switches allows localized awareness and individual actions to save energy. The lack of accurate and up to date information is the largest correctible deficiency

I put this book down hoping that I might one day be able to take the secret intelligence budget of $60 billion a year, cut it by two thirds, and apply one third of that budget to implementing this book's ideas, and one third to creating a new form of global education that is continuous, free, online, in every language, and equally balanced between structured human teaching, interactive social networking, and self-paced online learning through serious games.

There is plenty of money and plenty of brainpower to save our planet and our quality of life while elevating the five billion poor, what we lack is inspired political transpartisan leadership, and a model, perhaps a model to be created in British Columbia, Washington, and Oregon.

I want to be part of this “big push” and am in awe of these authors and the big ideas they represent.

My top ten green to gold books:
The Limits to Growth
Seven Tomorrows
Silent Spring
Ecological Economics: Principles And Applications
High Noon 20 Global Problems, 20 Years to Solve Them
The Future of Life
Plan B 3.0: Mobilizing to Save Civilization, Third Edition
Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage
Cradle to Cradle: Remaking the Way We Make Things

I would also point with enormous respect to books on green chemistry, beneficial bacteria, sustainable design, and what I think of as the “home rule” literature: an end to corporate personality, localized agriculture, localized credit (e.g. Interra Project), and an end to absentee landlords and mega farms that produce indigestible corn for cattle whose waste gets into our spinach, and for fuel (one tank of ethanol consumes enough corn to feed an individual for an entire year).

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