DesiPundit

The RBI is mulling the creation of a Sovereign Wealth Fund to invest its stash of excess reserves. Kiran launches into an interesting history narrative to explain why this is not a bad idea. Whether you agree with the conclusion or not, you will love the History lesson!

While Bartholomeo Diaz and Vasco Da Gama were finding the Eastward trade route to India, Spain dispatched one Christopher Columbus on a misguided Westward journey to India. Now the “India” or “Indies” that Columbus found quickly became the exclusive domain of Spain, where they found that they could simply dig up precious metals like gold and silver. They decided that it was good to keep your gold and silver in the country than to use it. And trade with India virtually meant that gold would leave your country and end up in India.