Geopolitical intelligence firm Stratfor has picked up rumors that PBOC head Zhou has defected.

While that would be very interesting news and a story that would likely make a good novel, it won’t likely change Chinese monetary policy very much, if at all.

Stratfor concludes that Zhou was under pressure for loses suffered in US Treasuries. Exactly how China could have lost much in Treasuries is a mystery…They are within a fraction of their all-time highs in terms of price right now…

It will likely add to the risk-averse mood until the dust settles, however.