TORONTO, ON--(Marketwired - September 27, 2016) - In response to Trump's terrifying economic policies (outlined in yesterday's presidential debate) mercurial author Mike Verge has just coined the term "Trump-flation." In Verges' timely new book, "Global Deflation, and the Next Great American Decade to Come" (available on Amazon), Verge predicts a world where the US enters a mild recession in 2017 but leads the world to a period of prosperity in the next decade. He says, however, that a Trump presidency would ruin it all! Verge goes out of his way to state that he is not an economist. He is an electrical engineer with an MBA, but has a unique way of creating simple models to explain complex economic situations. To explain his vision he blends all these models into what he calls 'Deflation Sunglasses.' If you put them on, you will be able to see prices well into the future, and prosper appropriately.
In his book he describes a counter-intuitive world where oil prices drop to twenty dollars per barrel, retailers are reduced to "Showrooms and phones," banks are formed where nobody pays, and asset taxes replaces income taxes. To explain all of this, he depends on three key principles:
1. The forces of inflation and deflation are always in a "tug of war". On the deflation side are aging demographics, overcapacity, and extreme global debt levels. On the inflation side there is money printing, continual expansion of this debt, and government infrastructure spending.
2. Deflation can only be fully understood from a global perspective (and in U.S. dollars) as all countries are trying to 'export deflation and import inflation.'
3. The internet is the "Silent Killer." It is the greatest deflationary force of all time. By instantaneously sharing information globally, it increases the number of potential competitors in any market to infinity, thus reducing prices and profits forever.
In his book, Verge does suggest some disturbing economic scenarios. However, even the worst of them never anticipated the economic policies of Donald Trump. He says that although isolationist policies (like building a wall at the border) may be popular rhetoric, they are not the answer. Periods of inflation and deflation are parts of a natural cycle, like breathing in and breathing out. Putting up a wall would be like suffocating the whole world in a giant plastic bag... he calls it 'Trump-flation' And that should terrify us all!
About the Author: Mike Verge was born In Montreal Quebec, Canada to an American mother and a Canadian father. He graduated in electrical engineering from the University of Toronto, and received his MBA from Wilfrid Laurier University in Waterloo Ontario. As a dual citizen he has held a number of executive positions in both Canadian and American corporations. With his electrical engineering and MBA experience, and as a past member of Mensa, he is uniquely qualified to identify trends, visualize patterns, and bring them all to life.
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