A picture to see through the monetary system and liquidity Investing without understanding liquidity is like a blind man feeling an elephant! In the liquidity framework of the monetary system, interbank market fund lending and the supply and demand of real economy financing are related to asset price fluctuations. Social financing reflects the demand for physical funds, while M2 reflects the money supply. Only by grasping these flow logics can we understand the market water level, predict asset trends, and prevent investment from being "confused". We can find opportunities in the flow of funds and avoid liquidity traps!