Understanding the Logic of Economic Growth/Decline in One Picture ‼️ Liquidity is the lifeblood of economic operation, Throughout every aspect of financial operations, At the same time, it is also linked to the cryptocurrency/US stock market. When expansionary monetary policy releases liquidity, market funds surge, corporate financing costs decrease, and consumption and investment regain vitality; However, the interest rate hike cycle tightens like a gate, and credit contraction may trigger a chain reaction - from a decline in consumer confidence to asset price fluctuations, the depletion of liquidity often becomes the trigger for recession (cyclical adjustment). Supply side reform reshapes the liquidity efficiency of production factors through technological upgrading and resource optimization; But if the distribution of liquidity is imbalanced, inflation and inequality may also breed behind prosperity. Policymakers, balancing risks and opportunities in the tide of liquidity, should not only avoid stagnation under the "liquidity trap", but also prevent the foam caused by overheating, which is closely related to liquidity, and also linked to the currency circle/US stocks.