Posted on 08/30/2010 9:09:55 AM PDT by SeekAndFind
Rumors have circulated in China that People’s Bank of China (PBC) Gov. Zhou Xiaochuan may have left the country. The rumors appear to have started following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that because of an approximately $430 billion loss on U.S. Treasury bonds, the Chinese government may punish some individuals within the PBC, including Zhou. Although Ming Pao on Aug. 30 published a report on its website indicating that the prior report was fabricated by a mainland news site that had attributed the false information to Ming Pao, rumors of Zhou’s defection have spread around China intensively, and Zhou’s name has been blocked from Internet search engines in China.
STRATFOR has received no confirmation of the rumor, and reports by state-run Chinese media appeared to send strong indications that Zhou is in no trouble at the moment. However, the release of this rumor and its dispersion throughout the public is significant, particularly as the Communist Party of China (CPC) is preparing for a leadership transition in 2012.
Chinese state-run media and official government websites have run several high-profile reports about Zhou, which should be seen as an attempt to refute the rumors. The PBC website published two articles on its homepage reporting on Zhou’s meeting with visiting Japanese Financial Services Minister Shozaburo Jimi during the third China-Japan high-level economic dialogue as well as a meeting with an Italian delegation.
(Excerpt) Read more at businessinsider.com ...
I’m sure he figured that if he stayed there was a firing squad in his future.
bttt
Someone said that he might want to trade Him for Tim Geithner.
Absent that, flight-to-dollar-alert. Then they'll get around to gold and hard goods.
No one has lost a dime on Treasuries.....yet.
I love the smell of a Chicom meltdown in the morning.
Execute your officers if they lose a battle China. That’s always the way to get the best out of a group! Always been a strength of our military that the middle ranks can make tactical decisions on the ground and not be persecuted for them even if they don’t succeed as planned or hoped.
Execute your officers if they lose a battle China. That’s always the way to get the best out of a group! Always been a strength of our military that the middle ranks can make tactical decisions on the ground and not be persecuted for them even if they don’t succeed as planned or hoped.
nice.
I was wondering about that - but then, if you sold them on the secondary market...
Hell, I’ll give ‘em little Timmy and the all the Fannie Mae and Freddie Mac Boards of Directors.
"When can you move the money?"
"I already have."
"Where did you move it to?"
"No one can know but me."
Makes no sense. First, we haven't defaulted so they haven't lost face value. Second, interest rates have been dropping recently, so bond values have been going up.
Maybe they are talking about taking a certain number of dollars they have through selling us stuff which are valued at a certain value of yuan at an artificially low exchange rate, buying bonds and those losing value in yuan when the exchange rate is adjusted from the previously artificially low value to a slightly less artificially low value. Then convert that number of yuan lost to dollars to get $430 billion. The problem is that they would have lost than anyway in U.S. bonds, U.S. currency or just about any European currency too.
wondering about that too.
I wonder if they are actually talking about all the derivative garbage JPMC, etc.. sold them.
Heard about a year ago, it was “Screw you JPMC, WE NO PAY!” coming from the China government when the billions in losses on these types of investments were being made public.
But the 430 billion number sounds awfully high.
Do you love the smell of a USA meltdown too? Because if they stop buying our bonds, we are next.
they do play hardball over there dont they. can you even imagine Geithner “defecting” to somewhere?
Rumors are that Zhou Xiaochuan along with both kidneys, liver, corneas and heart have fled.
RE: “Screw you JPMC, WE NO PAY!” coming from the China government
Let’s say the Chinese Government DID say that, what can JPMC do about it ? even more important — what will that do to China’s financial credibility in the future ?
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