U.S. Money Supply Seeing Sharpest Drop Since Great Depression, Sparking Economic Concerns

U.S. money supply (M2) is shrinking the most since the Great Depression, declining by nearly 4% recently
Historically, when M2 declined by 2% or more, economic depressions and double-digit unemployment followed
The current M2 contraction is close to double the decline before the 1921 depression
Lower money supply means less cash available, potentially leading to lower consumer spending, business investment, and deflation
But the current M2 decline may not lead to economic and market troubles due to less cash usage today compared to the past