There are at the moment some unconfirmed reports that China’s central bank governor, Zhou Xiaochuan, has defected to the United States. Among the reasons given for his possible defection are large losses made by the central bank on investments in US Treasury Bonds. One can only speculate at this stage, but presumably the next central bank governor would be a lot more reluctant to invest in US assets! Which will make the financing of the US public debt much more challenging, as well as lead to a much weaker USD. A story worth watching!