In gold we trust.

"The Reserve Bank of India (RBI)... said its board had approved a dividend payment of Rs 30,307 crore (Rs 303.07 billion) to the government for the financial year ended March 2022," CNBC. Last year the RBI transferred Rs 991.22 billion for a period of just 9 months. In 2021, "The RBI was second only to Turkey in terms of reserves transferred to the government as a percentage of gross domestic product (GDP) for the fiscal year 2020-21," TOI. "Turkey's annual inflation jumped to a two-decade high of 69.97% in April," Reuters. "Turkey's lira slid beyond 16.4 to the dollar... to its weakest level since the depths of a December crisis," as "The lira has weakened more than 9% this month and 19.5% this year," Reuters. Although well behind Turkey, India's consumer price index (CPI) inflation jumped to 7.79% in April, TIE. "After hurtling past the 77/$1 trade today (9 May), the rupee weakened further against the US dollar..., hitting a fresh all-time low of 77.58/$1," ET. The rupee is trading at 77.69 to one dollar this morning, xe.com. "Over the last decade or more, the government has sought higher payouts saying the RBI was maintaining reserves that were much higher than other central banks. But, the central bank has already tapped into the reserve to support the rupee and may be more cautious given the global uncertainty," msn.com. "The size of the Reserve Bank's balance sheet, which is reflective of activities carried out by it in pursuance of currency issue function as well as monetary policy and reserve management, has increased by 8.46 percent during 2021-22, the annual report data showed. While income for the year increased by 20.14 percent, expenditure rose by 280.13 percent, RBI said," ET. Since the RBI has the power to print money the eye-watering jump in expenditure should be no problem. "But, there's a danger, exemplified by Venezuela in the 1980s and 1990s. The central bank, pushed into insolvency by its support of the Latin American government's industrial policy, leaned too heavily on the power of cheap money-printing to earn profits and repair its balance sheet, and lost control of inflation. Thinning out the central bank's capital cushion could introduce a similar vulnerability," wrote Andy Mukherjee in 2018. Rather than risk the nation's economy, the then Governor of the RBI Urjit Patel resigned for "personal reasons", BBC. After giving an example of another Latin American country, Argentina, Deputy Governor of the RBI Viral Acharya soon followed, NDTV. "In the past, the RBI was persistently trying to push growth by keeping monetary policy excessively loose, as a result of which we are in the sorry state we are in. There is almost runaway inflation and growth is not very much better," said Mythili Bhusnurmath. The RBI "nearly doubled its gold purchase 65 tonnes in Fy22 raising its total holding to 760.42 tonnes," ET. That's precisely what ordinary Indians do, DNA. Because they do not trust the government or the RBI. Why pay these fellows?