The reply came back:

If the M2 money supply is lower this year than last year, it means that the total amount of money in circulation has decreased over the past year. M2 is a measure of the money supply that includes cash, checking deposits, and near money (short-term deposits that are highly liquid and can be quickly converted to cash). A decrease in the M2 money supply could indicate several things, including a decrease in the demand for money, changes in monetary policy by the central bank, or a contraction in the economy. However, it is important to consider other economic indicators and factors in order to fully understand the implications of a decrease in the M2 money supply.

I also asked for other possible explanations for this phenomenon.

There could be several other explanations for the M2 money supply being lower this year than last year, including:

1. Increased saving: If households and businesses are saving more and spending less, the demand for money will decrease, causing the M2 money supply to decline.

2. Decreased lending: If banks are lending less, there will be less money in circulation, causing the M2 money supply to decline.

3. Shifts in foreign exchange: If there is a significant shift in foreign exchange rates, it could affect the M2 money supply by altering the demand for a currency.

4. Changes in monetary policy: Central banks can influence the M2 money supply through various monetary policy tools, such as open market operations or reserve requirements.

5. Repaying debt: If households and businesses are paying off debt, they may be reducing the amount of money they have in checking deposits or near money, causing the M2 money supply to decline.

It is important to consider all relevant economic indicators and factors in order to fully understand the implications of a decrease in the M2 money supply.

The last follow up question I asked for specificity was regarding if the M2 money supply being less this year than last year could indicate an economic crisis, recession, or depression event.

The final reply came back:

A decrease in the M2 money supply can be a warning sign of an economic slowdown or a potential crisis, but it is not a reliable indicator by itself. A decrease in the M2 money supply could indicate several things, including decreased lending, increased saving, shifts in foreign exchange, changes in monetary policy, or a contraction in the economy. However, the presence of other indicators and factors, such as a decrease in employment, a decline in gross domestic product, or a sustained period of low inflation, would be necessary to confirm that an economic crisis, recession, or depression event is taking place. In other words, a decrease in the M2 money supply should be considered in the context of other economic indicators and factors in order to fully understand its implications.

It seems like this is a rather complicated issue, with a variety of variables to consider. We need an economist anon to chime in with their own explanation.

Still, this has been an educating dig if nothing else!