In spite of being super power, America is no longer considered to be fully protected from credit crunch. Though America is proud of having the largest economy in the world as per GDP report, the American economic infrastructure is not immune to financial crisis.  In this connection it can be said that America first experienced the caustic brunt of great depression during the period between 1929-40 which was energized by the American stock market crunch in the year of 1929.

This type of severe financial depression in the American history forced the then hon’ble American president  Franklin D. Roosevelt to take drastic steps to introduce New Deal in the American economy. New Deal is a series of emergency economic procedures which were designed and programmed to retaliate the steady progression of unemployment, dejobbing, hunger and homelessness which occurred owing to the sudden occurrence of the financial slump. It was thought to be vital factor to strengthen the chance of widespread of fascism in countries like Nazi Germany which enhanced the outbreak of second world war. In July 1944, just before the occurrence of the second world war, the UN monetary and financial conferences were held at Bretton Woods in New Hampshire. In this connection, the General Agreement on Tariffsand Trade of GATT and the IMF came into picture.

There is another historical anecdote to strengthen the possibility of the sudden decline of dollar value with the decision of American government to prevent the convertibility of the American dollars to the value of an ounce of gold. This type of dollar crisis minimized the value of the American currency which boosted up the huge increase in the cost of oil as the Organization of Petroleum Exporting Countries or OPEC made readjustment of the prices to get the clear reflection of the dollar’s depreciation.