Rumor of the Day: Governor of Chinese Central Bank Gone Missing?

over $430 billion US Treasury holdings loss. He may have fled to the United States, one rumor says. Also, it may not be their US Treasury holdings but Fannie and Freddie bonds. At this point, nothing is confirmed, just a rumor circulating in Chinese media.

But how he could have lost that much? Do you smell Goldman Sachs or Morgan Stanley? Do you smell some synthetic positions recommended by them either to hedge or to speculate (betting that the Treasury prices go down), which may have spectacularly blown up in the recent weeks? And if his bank was also doing the currency hedging and/or speculation ...

For more, go to Zero Hedge, who cites Stratfor:

Rumor PBoC Governor Zhou "John Meriwether" Xiaochuan Has Defected From China After Suffering Half A Trillion In UST-Related Losses

Where In The World Is Zhou Xiaochuan? Stratfor Provides Update As 1 Month Chinese Repo Surges By 50%

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