If we do not eat (eg between meals, during sleep or fasting), the absence of new glucose supply (from food) causes insulin levels to drop. This is a signal for the body to burn stored energy. This starts with glycogen. Only when the stocks of glycogen are used up, do we start to burn fat. The goal of weight loss is to burn excess stored fat by mobilizing it and bringing it to areas of the body that can use it as fuel.
It is important to note that the "storage" signal from insulin prevents the body from burning fat for energy as long as insulin levels are high.
Insulin levels must therefore be lowered in order to lose weight.
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