French President Nicolas Sarkozy, leading the two-day conference with former British Prime Minister Tony Blair, blamed financial speculators for encouraging a system fueled on debt. He called financial capitalism based on speculation "an immoral system" that has "perverted the logic of capitalism."
"It's a system where wealth goes to the wealthy, where work is devalued, where production is devalued, where entrepreneurial spirit is devalued," he said.
It actually makes a lot of sense. Speculation was a major factor in the Great Depression. It's what caused the dot.com bubble, and also what caused the housing bubble. And what makes speculation possible? Playing lose and free with the money system. There is room for governments to expand the money supply in times of economic recession, but they need to contract the money supply when things are going good. Same with debt.
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