Welcome to “Trump-opolis ”
How incensed will you feel when you are driving down the highway of the future and you have to pull into a booth, show documentation, and pay a fee to enter the next city down the road? The “customs agent” will ask you where you live and what is the purpose of your trip! That is when it will hit you, “These cities are not for me. They are for the ultra- rich!.....How did we get into this situation?”
In my newly published book, ‘Global Deflation, and the Next Great American Decade to Come’ (now available on Amazon), I show that the situation described above is actually inevitable! At this point in our business cycle, all politicians now seem to be focussing on infrastructure spending. Throughout history, all the great civilizations of the world faced the same challenges. They got to the same point of their economic business cycles, focussed on the same type of infrastructure projects, and then had the same problems. They all concentrated on the infrastructure construction costs, never on the maintenance costs. The results were also, always the same. Infrastructure costs always “surprised to the upside” and then the maintenance costs always consumed you over the long-haul. Nobody talks about it, but effectively, when you build infrastructure, you are building in “future taxes”. Now that Donald Trump is planning massive infrastructure spending, this will only make our future tax problems worse!
Taxes, Tolls and Fees!
Another result of this pending infrastructure construction, is that economic growth across the country will be extremely uneven. It will be focussed in the major cities while small towns will be left behind. Since it is possible for inflation and deflation to exist at the same time, in the future you will see inflation run rampant in the major cities while deflation will rule in the countryside. The rich will live in the cities, and the poor outside. Of course the city dwellers will not want to pay for all the infrastructure they built, so they will tax outsiders for the privilege of getting into their city. This will typically take the form of more taxes, fees, and tolls.
There are ways to address this seemingly unfair paradox, but you must first understand how the economics work on both a local and a global basis. In the book I discuss many new models to help us do this. On the global basis I discuss the concepts like “Global Gateway Cities”. On the local level I introduce concepts like “Real Estate Micro-Pockets”. I also introduce a number of unique new “visual models” to explain complex economic concepts. These models are like ‘Financial Sunglasses’. You put them on and all these economic complexities become clear.
At the basis of all these models, are three key principles:
- Deflation can only be fully understood on a global perspective and in U.S. dollars!
- The forces of inflation and deflation are always in a “tug of war”.
- The internet is the “Silent Killer”. It is the greatest deflationary force of all time.
In the book I go on to describe a counter-intuitive world where oil prices drop, retailers are reduced to “Showrooms and phones”, banks are formed where nobody pays, and other new and innovative taxes will augment income taxes. With this understanding, it seems already apparent that the walls that Trump talked about during his election campaign will be built. But they will not be physical walls around our country. They will be economic walls around our cities. These twenty first century walls will create islands of inflation separating the rich from the poor. The cities of the future will become tax gathering machines all designed by Trump. As you drive down the highways of the future, the road signs should not necessarily identify the specific cities. They might be more helpful if they simply read; …………………………. “Welcome to Trump-opolis!”



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