Mr. Canada, you can put $100k in one bank then move on to the next. The same basket...with different hens?
It seems the analogy has surpassed it's usefulness...
Living in Canada and under CDIC rules, only $100,000 is covered. Thus, backing up my original post of not putting all your fiat eggs in your bank basket.
I suppose that's something to worry about, but only for the tiny portion of people for whom more than $100,000 is a reasonable amount of "liquid short-term assets". I don't expect to ever hold more than an emergency fund + float in cash, so that's not an amount I expect to ever exceed.
An FDIC insured basket doesn't do much if a currency is hyperinflated though.
I would put that pretty low on my list of worries, if your money is in USD or a similarly stable currency, rather than a small one like Zimbabwean dollars or Icelandic Krona. Modest inflation, perhaps even in the low double digits, is a non-negligible risk, but Weimar-style hyperinflation in USD is a fairly negligible risk, much lower than a bunch of other risks I'm exposed to. The last time the annual inflation rate in USD surpassed 100% (which still isn't even hyperinflation territory) was during the Civil War, ~150 years ago.