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The really bad stuff ain't visible...
Sure, that smoke looks nasty, but it ain't the really nasty stuff like particulate matter, etc.. And keep in mind that two strokes aren't obsolete, they can meet all the current emissions standards. For example, the 2 stroke diesel EMD locomotive engines are still being built and it looks like they may have an easier time meeting the upcoming tighter standards than the 4 strokes.
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