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LY domains would have to be phenomenally lucrative to make any significant impact in an economy with billions of barrels of oil.

http://en.wikipedia.org/wiki/Oil_reserves_in_Libya

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http://oil.ly is already taken, btw, but seems unresponsive. http://oi.ly is also taken. Alas.

I'm sure you'll manage to find other words to describe Gaddafi.

And they aren't. The nic.ly page says about 10k have been registered, meaning they make about $750k/year. The country's GDP is five orders of magnitude larger.

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