Writes Steve Fairfax: The Federal Reserve has released statistics showing a dramatic change in bank reserves in the two-week period September 10 to September 24. Banks are now holding reserves that are 268% of requirements. Typically, and as recently as August, reserves are 4 to 5% over requirements. Banks normally make overnight loans of “excess” reserves to other banks short of reserves. Now they aren’t. In times like these, bankers are like all conservatives: They start to worry more about return OF principal than return ON principal. If they make an overnight loan to the next bank to fail, they … Continue reading 680% Inflation?