This is so clear to me now. Before I believed that there would come a point where the banks have so much reserves that even if the Fed stop giving them Fed Notes and allow them to fail, with the enormous reserves they hold, bank runs ALONE would cause hyperinflation. I believe now that we have reached that point. We have reached that point of no return from hyperinflation.

The Fed and govt. is not stupid enough to believe that lending with all this deleveraging will stop the deleveraging. What the Fed is doing is supplying the banks with the money they need to stay afloat because they know that if the banks fail with the enormous reserves they have, hyperinflation will be exposed through bank runs ALONE! This all makes sense now. It is not in the Fed or the banks or anyone's interest to have the banks resume lending because the banks need the money to keep the lights on. Lending money with all this deleveraging is a guaranteed loss and the Fed, the Banks and everyone with a brain knows this.

The Fed will tell you and play the role as if they want the banks to resume lending but what's really going on behind the scenes is that they DO NOT want the banks to lend because if the banks resume lending it will be harder for them to stay afloat because of the lost money from investing with all this deleveraging. And if the banks fail hyperinflation will be exposed through bank runs.

Through out history, The Fed and govt. have been doing everything they can to hide hyperinflation and that has not changed. Anyone with a brain knows that lending money with all this deleveraging going on is a guaranteed loss. I refuse to believe the Fed is that dumb to believe that they can stop this deleveraging with more debt. I believe that they know they can't. They know that if the banks lend the money, that money will be lost. They also know that the banks need the money to keep the lights on.

The reason they (the Fed) are saying they want to banks to lend is to push the false idea that deflation is the problem, that lending is the solution and that what they are doing is solving the problem. It's all about deflation.

They want the world to believe deflation is the problem we are facing when it is not. One thing we know about the govt. and the Fed is that they have a history of hiding hyperinflation. This time is no different. We have reached that point of no return and hyperinflation would occur if the banks failed right now. That is why the Fed is keeping the banks afloat. Hyperinflation is inevitable whether the banks are allowed to fail right now or through the continuation of these bailouts. And the longer the Fed keeps these zombie banks afloat the worse hyperinflation will be when it is finally exposed and it will be exposed inevitably.

My fear for loosing my money through bank runs is gone :) I don't even want dollars. I'm buying all the silver I can.