As noted in my last article, “Fed Loses Control of its Benchmark Interest,” bank liquidity strains are written all over this month’s troubles. Some may find that hard to believe because there is so much hot air (fiat money) still floating the system from a historical standpoint. There is a sound fundamental reason, however, that a lot is not enough. The diminished money supply is simply not enough to keep the world’s huge asset bubbles (hot-air balloons) moving around. Simply put: if you move or convert a LOT of big assets, you need a LOT of liquidity in banks to handle those transactions.