Rumors spreading that China's central bank chief has defected

Looks like clouds on the horizon for China.

Rumors have run rampant in China that the governor of the People’s Bank of China (PBC) Zhou Xiaochuan may have fled the country, according to a report from STRATFOR, the global intelligence company.

The rumors seem to have started following reports on August 28 which cited Ming Pao, a Hong Kong-based news agency, which said that the Chinese government may punish some members within the PBC, including Zhou, due to an approximate $430 billion loss on U.S. Treasury bonds.

AE futher commented that "these types of rumors could suggest a brewing internal power struggle within the Party. Whether the rumors are true or not, any potential instability within China could be another reason to own Treasuries."

Zerohedge.com weighed in on the matter: "Even if Zhou is safe and sound in Beijing, the fact that China [may have] experienced nearly half a trillion in losses on its [US Treasury] holdings is shocking, and means that the US Treasury bubble may be approaching the popping phase."



Interesting to see where this goes.

http://www.ibtimes.com/articles/47452/20100830/china-central-bank-defection.htm

thats a good catch freeanger..one i will post on the blog..something stinks..and it aint the toilet..

Follow the Money!

sounds like a plan!