Fren, the liquidity alarm has sounded again — the Federal Reserve may soon restart the "printing press".

This is not just talk. Bank reserves have fallen below the 10% safety line of GDP, and the buffer funds piled up in the Fed's reverse repo tool are almost at zero. More directly, the SOFR rate has significantly exceeded the policy rate, and banks are increasingly unwilling to lend to each other.

The current economic size is larger, but the funds are tighter, and the government issues over 2 trillion USD in national debt each year. Who will take over? The Federal Reserve's balance sheet has reached 6.9 trillion USD, and the room for continued contraction is limited. Restarting QE may just be a matter of time.

Once the sluice gate opens again, how should we ordinary people respond?

Bank deposits are hard to withstand inflation erosion, and more and more people are turning to inflation-resistant assets such as gold and Bitcoin. Gold continues to rise, and the fixed supply and halving mechanism of Bitcoin make it a potential choice to hedge against excessive issuance.

Investment requires rationality, and volatility still exists. However, in the face of a new wave of liquidity, thinking ahead about how to protect wealth is a preparation that everyone should undertake.