Unless you have posts that don’t have a city aren’t you essentially querying all your posts? Anyway, Eric Holmes is correct that you should be using WP_Query
in lieu of query_posts()
.
That said, you can get a list of all the terms in a taxonomy and then use those values in your tax query.
// get all terms in the taxonomy
$terms = get_terms( 'city' );
// convert array of term objects to array of term IDs
$term_ids = wp_list_pluck( $terms, 'term_id' );
// proceed with tax query
$args = array ('tax_query' => array(
array(
'taxonomy' => 'city',
'field' => 'term_id',
'terms' => $term_ids,
)
)
);
$city_posts = new WP_Query( $args );