Credit Crunch USA, Future Crash Explained. Credit has expanded 3 times since 2008. Almost all dollars in existence in the U.S. economy are in the form of credit. During the last economic crisis, 2008 -2009, the rapid contraction of credit led to an almost systemic collapse of the U.S. financial system, with notable financial giants such as Lehman Brothers closing their doors for good. All credit and expansion of credit is based upon underlying assets. When assets accelerate in value, due to speculation, credit can expand exponentially and lead to artificial boom times, but reality always catches up. Today, the U.S. credit expansion is at record levels and despite records levels in the money supply, due to credit expansion, the vast majority of middle-class Americans are not doing well. As a matter of fact, the wealth distribution in this country is far more skewed in favor of the top 1% and top 1% of 1% than at any time in U.S. history. This all bodes ill for the economic future of the U.S.A. Credit crunch USA, demise of the U.S. dollar, economic contraction 2017