by Byron King
Daily Reckoning
Dear Resource Hunter,
On Oct. 14, 1947, American test pilot Chuck Yeager took flight above Muroc Dry Lake, in California’s Mojave Desert. He broke the sound barrier in a small, streamlined aircraft called X-1. However, after reviewing flight data, engineers realized that supersonic flight had potential to rip the wings off an airplane. This was a problem, and we’ll discuss it more in just a moment.
Meanwhile, in January 2016, central bankers across the world also broke another “barrier” of sorts. Collectively, they rolled down a road that’s unfamiliar to modern finance. We’ve never seen this new issue before; in fact, it has potential to “rip the wings” (so to speak) from high-end finance across the world. It’s a major problem, and we’ll address that in a moment, as well.