When you eat less than 50 grams of carbs a day, your body eventually runs out of fuel (blood sugar) it can use quickly. This typically takes 3 to 4 days. Then you’ll start to break down protein and fat for energy, which can make you lose weight. This is called ketosis. It's important to note that the ketogenic diet is a short term diet that's focussed on weight loss rather than the pursuit of health benefits. 
In so far as insulin promotes de novo lipogenesis and suppresses lipolysis in adipocytes it DOES help keep the fat inside. But in Hyperinsulinemia / Insulin Resistance with Impaired Glucose Tolerance lipolysis may not be sufficiently reduced and fatty acids and glycerin can be spilled at the same time that Triglycerides are being formed & stored. In the liver the glycerin gets converted to glucose producing hyperglycemia.

I’m 63 years old and I have been following a daily 19 hour protocol called Fast 5, fast5.org for two years. I eat lunch at 3pm and dinner at 7pm close my eating window at 8pm. I’ve lost 43 lbs and kept it off, feel great and I am no longer pre diabetic. I eat what I want and don’t track anything. I belong to a Facebook Intermittent fasting group called Fast Club and would to have you check it out. Fasting is free and it works!
When your body burns its stores of fat, it can be hard on your kidneys. And starting a ketogenic diet -- or going back to a normal diet afterward -- can be tricky if you’re obese because of other health issues you’re likely to have, like diabetes, a heart condition, or high blood pressure. If you have any of these conditions, make diet changes slowly and only with the guidance of your doctor.
Make sure that you don't get hungry by eating small portions throughout the day at regular intervals. Between your meals, eat a 150-calorie snack to keep your metabolism burning and to stave off hunger. Be sure that you don't eat a fattening snack such as sweets or crisps. When you're hungry, your body conserves calories and slows down your metabolic processes.
Basically, the effect of exercise on our weight is overrated. That’s why it’s only number 15 on this list. There are other things you may need to take care of first. It’s not a good idea to eat unhealthy processed food, drink sugar water (so-called “sports drinks”) or be on medications which can force you to exercise for hours daily just to compensate. Metaphorically that’s like digging a hole, into which you put your ladder, on which you stand and paint the basement-level windows of your house.
Y. Wady Aude, MD; Arthur S. Agatston, MD; Francisco Lopez-Jimenez, MD, MSc; Eric H. Lieberman, MD; Marie Almon, MS, RD; Melinda Hansen, ARNP; Gerardo Rojas, MD; Gervasio A. Lamas, MD; Charles H. Hennekens, MD, DrPH, “The National Cholesterol Education Program Diet vs a Diet Lower in Carbohydrates and Higher in Protein and Monounsaturated Fat,” Arch Intern Med. 2004;164(19):2141-2146. http://archinte.jamanetwork.com/article.aspx?articleid=217514.
Be choosy about carbs. You can decide which ones you eat, and how much. Look for those that are low on the glycemic index (for instance, asparagus is lower on the glycemic index than a potato) or lower in carbs per serving than others. Whole grains are better choices than processed items, because processing removes key nutrients such as fiber, iron, and B vitamins. They may be added back, such as in “enriched” bread.
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