Today, I am reviewing The Practical MBA on Economics by Joseph Gulesserian, a bit of a different read than what I normally review.
Okay, so you may be asking yourself, Why would a fantasy/speculative fiction author like TC Marti review a book on economics, of all things? Well, when you read my work, you will notice that economics and politics, specifically those in the libertarian/classical liberal sector, comprise major themes.
I am also a regular reader of the Foundation for Economic Education, the Mises Institute, and the Ron Paul Institute, and I derive many politically-driven ideas from those outlets and place them into my novels. That said, reviewing The Practical MBA on Economics by Joseph Gulesserian was, indeed, a good fit for my blog from a thematic standpoint.
Without further ado, let’s get into the review!
Reviewing The Practical MBA on Economics by Joseph Gulessarian
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 seat belts, and enjoy the ride.
I was literally sitting in my microeconomics class back in 2011 once again when I took a look at Joseph Gulessarian’s work. I’ve always stated that August/September 2011 was more of my red pill year, where my views on economics changed from those of collectivism/socialism to more of an anarcho-capitalist/libertarian/classical liberal mindset.
My teacher/professor at the time talked about the likes of Mises, Rothbard, Hayek, Sowell, Friedman, and so many others I am most definitely forgetting. Long story short, the first question I asked myself was, “Why did we never learn about these guys in school?”
And my question while reading The Practical MBA on Economics preached an identical question: “Why are schools still not teaching us this? I could honestly write my own book on the subject, but instead of answering that question, Gulesserian gives you a far more sound economics lesson in one, easy-to-read 500-page book that you would never learn in 13-18 years sitting in a classroom.
I am one of those writers/authors that encourages broad mindsets. So if you sat through economics classes whether it was in high school or at the university level, check out Joseph Gulesserian’s work for a simple alternative, and a far more economically sound piece of literature than you would get anywhere else. And it might cost you a few-thousand dollars less!
Overall, I could write a 3,000 to 5,000-word review here, but in all honesty, I’d rather you get the full deal by checking out Gulessarian’s work for yourself. As for me, personally, this one gets a resounding 5 out of 5 Nordic Runes (I use them instead of stars), and it’s not even close.
Gulessarian challenges the mainstream collectivist point of view we see far too often in the 2020s, during the age of censorship. Luckily, we still got books out there to teach us that truth doesn’t always come from authorities like public schools, universities, politicians, or the mainstream media. Sometimes, it comes from diamonds in the rough, and that is what I saw with The Practical MBA on Economics.
Author Interview with Joseph Gulesserian, author of The Practical M.B.A. on Economics “What They Do & Don’t Teach You At Business School”
What is the difference between CPI inflation and effective inflation?
The Consumer Price Index (CPI) does not reflect essential purchasing on the things we buy and need the most. For example, the basket of goods in the CPI are weighted towards cell phones, ISP and Cable providers, electronics, house rent, clothes. However, the index gives little weight to grocery basket items such as cereals, vegetables, fruits, energy and house price inflation. For example, if let’s say, gasoline suffers from price escalation volatility, they either reduce the weight within the index or kick it out of the CPI.
The official narrative of CPI inflation is 9.1% inflation, and if we used the same measurement as in the 1980’s of inflation, when Volcker was Fed chairman, the real effective inflation is closer to 20%. Effective inflation is captured by a site called shadow stats that concurs with that it is closer to 20%, which you can feel when going to buy gas and groceries.
Who Caused the Inflation?
Put simply, the cause is reckless spending by government, facilitated by Central Bank money printing that equates to lending money to buy 10-year Treasury Bills from an insolvent government.
The official inflation narrative was the clogged ports that lead to logistical issues, then the story changed to transitory inflation (temporary), then terms like peak inflation, and now the Russia-Ukraine conflict, where CPI inflation was already at 7% before the war. Now the new narrative is greedy oil companies. All these are prevarications by the presstitute MSM who act as one with government to deflect the truth.
The true cause is the “Cantillon effect”, where too much money is chasing the same amount of goods along with low monetary policy (interest rates), causing inflation. The genesis lies in all the helicopter money sent during the pandemic, where people stayed home, (unlike Sweden who did not lockdown their economy and fared better than most of Europe in health), ordered products on Amazon, who in turn ordered them from China, the world’s workshop, ending up clogging the ports, creating price escalations on commodities and steamships.
This is discussed in detail in my book.
What is the true cost of inflation?
It is tax on the consumer, for example, if your monthly expenditures on your home basket of goods is $2,000 per month and inflation is effectively 15%, you are in effect paying a tax on the same amount of goods of $300.00 per month. So, government benefits, since let’s say, sales tax is 7%, they collect on the higher inflated amount. Put this number in an economy of $20 trillion that grows to $23 trillion, and that means government collects an extra $210 billion. Even if wages go up from $50,000 to $60,000, federal and state income tax at 25% equates to an extra $2,500 of taxes. At the same time, by earning $60,000, it might bump you into a 30% income bracket with a net increase on taxes of $7,500. Hence, the raise you received has net benefit of $2,500, which puts one well behind the inflation curve.
The other cost is the wealth divide, where people with no assets cannot keep up with appreciating assets. Again, this is monetary in nature, meaning money printing and artificially low interest rates, and it hits the working poor and the middle class the most.
What is the definition of a recession?
The classical definition of a recession is 2 quarters of the GDP shrinking, meaning the economy is shrinking.
A recession is a natural bi-product of the free markets where inefficiencies and distortions in the economy are rinsed out allowing the markets to go into a more natural supply and demand price equilibrium. Meaning stocks, homes and products fall into more affordable pricing. Because it is not politically expedient, government and Central Banks move in with both fiscal and monetary interference that inhibit a natural recovery, and in essence, end up leaving more permanent distortions in the economy and ensuring that the next recession will be even more pronounced.
The outcome is that government leaves a mountain of public debt, price and technology distortion and higher taxes to suffocate the consumer and firms.
What are paper currencies backed with?
Fiat currency interchangeably called paper currency is not hard backed except by the trust of the government that issues it. After Bretton Woods in 1944, the U.S. dollar and other major currencies, such as the Pound Sterling, were backed with gold. Hence, for every dollar issued, it would be backed with 40% gold, making it a hard backed currency. Meaning that Central Banks could not issue money without a gold reserve.
This changed in 1971, as President Nixon took the USD off the gold standard, which is discussed in my book. What this means is that Central Banks can issue in theory infinite currency without the hard backing of gold. Subsequently, governments can spend without accountability, and this leads to debasement of money and inflation, where it takes more dollars to buy the same amount of goods.
About Joseph Gulesserian
Joseph Gulesserian is an entrepreneur and a published author, who wrote “Newspaper Boys Always Deliver”, a story of pop culture and technology. He has built and brought to market health and beauty Brands with global reach that has sent him around much of the world.
With his technical training, he has spent time on the factory floor with technologies from machine building to software information systems, for competitive advantage.
He has an insatiable eclectic curiosity for flirting with the outer parameters of the human imagination, is a student of history, loves the arts, design, the digital age, math, while believing in the tenets of the marketplace of ideas and personal liberty.
After earning his MBA from Edinburgh Business School in the U.K., he taught Corporate Finance, Capital Markets, Statistics and marketing, as an adjunct professor at Toronto colleges.
Enter the Giveaway: THE PRACTICAL MBA: ECONOMICS Book Tour Giveaway
Note: Today’s article contains affiliate links. I may receive a small monetary compensation for anything purchased through the link at no additional cost to you.