Hi Energyplay,
Not to worry about the trade surplus generated forex reserve. Taiwan's forex reserve is still there, has grown, and parked in treasuries and such.
The Stock Stabilization Fund, a separate animal, has been hurt badly. Given that the KMT had been voted out of office, the party's funds (in the tens of billions) has stepped out of harm's way. With the KMT attacking the party now in power, and with the masses caring about their disappearing wallet, the exercise is simply a large insider-trading manipulation scheme.
Imagine what the Bush party can do if it had access to a fund able to manipulate the NYSE/NASDAQ.
The currency crisis is a reflection of the developing banking crisis, even overwhelmed by the good news on the trade surplus generated reserve. The local banks do not hold much of the surplus, as the industrialists are (a) too smart, and (b) own many of the banks that will end up in the morgue.
On Taiwan's importance to the PC industry, believe 80% of all the world's motherboards are originate from there directly and indirectly (China produced, but Taiwan funded and owned). I am not sure about the chips, but % can not be small. |
