The Practical MBA on Economics
WHAT THEY DO & DON’T TEACH YOU AT BUSINESS SCHOOL
A Plethora of Wealth - Knowledge - Insights, that will help you take over the World and Beyond!
Government and the Central Banks have been managing the economic business cycle for over 100 years, creating the biggest Ponzi scheme of money printing ever invented in the history of civilization, as we now find ourselves living in a precarious house of cards. By hallowing out our manufacturing, have we diminished our inventiveness? What role did China really play in this, and what role did our own selfish desire affect the outcome, and what was the trade-off?
Is this the beginning of the end of US monetary global dominance, and how long can we print fiat money to support the vestiges of a declining Empire? Is the cost of living going up, or is it because currency is rapidly depreciating? What is the true source of effective inflation, and why is the wealth divide becoming greater?
The pages of this book bring to light the roots of our economic order of today, and help explain the world around us, how we arrived here, and what might lie ahead.
The Practical MBA on Economics is comprehensive, fast-paced, making for magnificent theatre, full of spills and chills, from stock market crashes to sovereign debt default, to the 1944 Bretton Woods reset, the IMF, the WTO, U.S. Dollar reserve, and mercantilism. We come to meet the economic thinkers that shape our world today from Adam Smith, Richard Cantillon, John Maynard Keynes, David Ricardo, Murray Rothbard, and Milton Friedman.
With intellectual clarity, insights, wit and humour, Gulesserian challenges the narrative, simplifies complex economic ideas, and draws from historical events, to explain how we came to the current financial world order, its perils, and the future of tomorrow!
With compelling antidotes that entertain, filled with relevance and a library of knowledge that leaves the reader feeling full, and liberated to unlock the future.
So, butter your popcorn, do fasten your seatbelts, and enjoy the ride.
Author(s): Gulesserian, Joseph
Year: 2022
Language: English
Commentary: MBA ON ECONOMICS, OUTBOOKS OF BUSSINESS SCHOOL LEARNING
Pages: 570
Tags: MBA ON ECONOMICS, OUTBOOKS OF BUSSINESS SCHOOL LEARNING
Contents
Acknowledgements
Prologue
Introduction
1 Economic Ideas at a Glance
The Competitive Environment
Monopoly
Perfect Competition
Monopolistic Competition
Oligopoly
The Semiconductor Industry
2 Monetary Theory and The Central Bank
Understanding What Money Is
Goldsmiths and Private Money
A First Look at Bitcoin
Fractional Banking: Strategies on How Banks Create Money
The Fractional Banking Multiplier
How Banks Create Money
How Mortgages are Created from Thin Air
A Brief History of Central Banks
The Original Role of the United States Fed
How Monetary Policy Works: Expanding the Money Supply
The Money Multiplier Revisited
The Art of Printing Money
The Moral Hazard
Quantitative Easing
Central Bank Policy
The Central Bank and the Moral Hazard: Some Final Thoughts
3 Some Macroeconomic Tools
Circular Flow of Income
Gross Domestic Product
How Government Fudges GDP Numbers in an Inflationary Environment
Back To Our Regularly Scheduled Program
4 Keynesianism
John Maynard Keynes
The Keynesian Multiplier
5 Inflation and Its Many Faces
Richard Cantillon
Inflation’s Devastating Consequences
The Phillips Curve
Stagflation and the Phillips Curve
Types of Inflation
Low Monetary Policy and No inflation. Could This Be Magic?
Other Explanations of Inflation
The Renaissance of Inflation
Home Price inflation
What Is a Home Really Worth?
Asset Price Comparative Relevancy
Containers, Helicopters, Covid Anxiety,and Inflation
Meanwhile, Back in Gotham City
6 Unemployment
1. Frictional Unemployment
2. Structural Unemployment
3. Seasonal Unemployment
4. Demand Deficient Unemployment
Effective Unemployment Numbers
Some Final Words on Unemployment
7 Bretton Woods and the 1944 Mid-Century Reset
A New Order Born out of Antiquity
The Rise of the U.S. Dollar—The Adjustable Peg System—The Gold Standard
The International Monetary Fund / International Lender of Last Resort
Conditionality
Alternative Lenders
The Chinese Debt Trap
The Case for Free Trade
The Clustering Effect and the Competitive Advantage of Nations
Hechscher-Ohlin Theory
Technology Theories of Trade
Some Final Thoughts on Theories of Free Trade
Why Mercantilism Fosters Mediocrity
India
Other Examples of Mercantilism
China
The U.S. Auto Industry: An Awakening Moment
Concluding Thoughts
Commercial Diplomacy GATT and The WTO
Most Favored Nation Treatment (MFN)
The Kennedy Round: 1964-1967
The Tokyo Round: 1973-1979
The Uruguay Round: 1986-1994
The Uruguay Round of GATT Establishes the WTO
The World Trade Organization and the Doha Round
Some Final Thoughts on the WTO and Trade
Non-Transparent Barriers to Entry
The Renaissance of Bilateral Trade Agreements
Multinational Corporations
Intellectual Property and Knock-Offs
Low Monetary Policy and the Mysterious Disappearance of Inflation in the West
8 This Time It’s Going to Be Different
Adam Smith: The Father of Modern Economics
On the Division of Labour
On Mercantilism and Free Trade
On Demand, Wages, Supply, Price, Equilibrium
The Anatomy of a Bubble
A Quick Analysis
The Great Depression
The Lead Up and Causation
Back to America
The Depression Begins
A Brief Look at the Times
The Hoover New Deal
A Peak into Hoover’s Mind
How Hoover Deepened, Aggravated, and Prolonged the Depression
FDR’s New Deal—1933
FDR Aggravates and Prolongs the Great Depression
The Great Depression: Some Final Thoughts
9 A Short History of the 1970s
Nixon Takes the U.S. Dollar off Gold
OPEC Crisis
Inflation and Stagflation of the 1970s
Stagflation
10 Roller Coaster Rides
The 1987 Stock Market Crash: A Rendezvous with the Enigmatic
Nasdaq 2001: The Dot-Com Bubble—A New Century, New Technologies, Same Exuberance
So, What Happened?
Rationalizing the Irrational
A Look at Some of the Actors and Their Follies
Accounting Tricks
Profits Don’t Matter
The Morning After
11 The Great Recession: A Crisis of Liquidity
Home Prices and Sub Prime
The Origins of Too Big to Fail
The Capital Markets Freeze
Bailouts and Back to the Moral Hazzard
12 The Phantom Returns with a Tragic Encore: The 2020 Meltdown
The Economy has Never Really Recovered since 2008
Inflation Re-enters Our Lexicon
Canada’s Reckoning
A look at the Architecture of Canada’s Suffocating Tax Environment
Back to Housing Inflation
Wall Street and The Fed Reinflate the Bubble
Band-Aids Vs. Cures
Keep Printing and Buy It All
Modern Monetary Theory Explained
Asset Purchases and Reinflating the Stock Market
Bailouts and Share Buybacks
Banks and Share Buybacks
Back to the Moral Dilemma
The Fed and The Liquidity Trap
Capitalism Built America—Are Bailouts Ruining It?
Zombie Companies
13 A Tale of Two Economies
The Great Divide
Renters and Landlords
Main Street and the Fed
The Cabalatocracy
A Look at the Actors of the Cabalatocracy
The Central Bank: The Maestro
Vessels”
10. Medical Inc. “A Division of Pharmaceutical Inc.”
The Wealth inequality Gap—Is There a Way Out?
Back to Inflation
Inflation Riots
The Inflation Trap
Deflation and Automation
Some final Thoughts
14 A Brief History of Sovereign Debt Default
More Sovereign Defaults
Seizing Foreign Revenue Creation of Assets
Defaults in the 1970s to 1980s and The Baker Plan
The Asian Financial Contagion
The Russian Ruble Crisis 1998
15 House of Cards
A Peak into the Ponzi Scheme
What’s Under the Hood of That Car?
A Made in China Ponzi Scheme
Zombie Companies
More Debt for the Old Debt
What if Interest Rates Went Up?
Looking for the Villain
Taxation Reform and The Rich
So, what do we mean by fair share?
The Fed is in a Trap
Government and Central Bank Options
16 Shelter From the Storm
Gold
Oil
Semiconductors
Agriculture Assets and Metals
Real Estate
Bitcoin
The Case for Bitcoin
The War on Bitcoin or the case against Bitcoin?
Become Your Own Central Bank
Some Closing Thoughts on Bitcoin
17 The Future of Tomorrow
Wage Inflation
The Middle-class Need Not Apply
Crisis after Crisis
Hard Backed Currency, Central Banks, and Sovereign Debt Default
The New World Order and The Great Reset
Central Bank-Issued Digital Currency
The Former USSR and Mao’s China
State-Run Capitalism
America’s State-Run Capitalism and the Cabalatocracy
A More Durable Communism Dressed as Equit
