Updates On Chinese Central Banker Who Ran

 Bizarre story from this morning's STRAFOR newsletter: that the chief of the bank has left the country due to a horrific $480B loss on US Treasury bonds. They have not confirmed the rumor, and suspect it was a planned leak from the opposition. The bank chief has higher ambitions, and is aligned with the current party chairman & the Shanghai Gang that took power after Tiananman Square 20 years ago. While the rumor may turn out to be false, the appearance of it suggests trouble in China at the highest levels. The most interesting speculation on the rumor is Zhou may instead be running from a corruption scandal.

UPDATE: ZH now reports an update out of China: "China may punish Zhou because China lost $430B on its Fannie and Freddie investment." While it doesn't add that much, it makes more sense to pin the tail on Fannie not Treasuries. The report adds: "The truth is that many Chinese thought China lost all its investment in Fannie and Freddie after they were delisted from NYSE. It is also wrong because China doesn't invest with their stocks." Confusion reigns!