Lets take a look at this release by the Fed today: http://www.federalreserve.gov/releases/h3/Current/ Non-borrowed reserves went from -61788 in March to -98981 in April. Banks cannot create reserves themselves. If the demand exceeds the existing supply of non-borrowed reserves, the banking system as a whole has no alternative but to borrow more reserves from the Fed. At what point does the Fed stop printing money? How is this even possible? You can drop that to -98981. Bernanke is laughing it up letting banks do whatever they please.