Block (1976) makes case that while counterfeiting legitimate money (e.g., gold) should indeed be considered a crime, creation of fake, fraudulent copies of money that is itself fake and fraudulent (fiat currency) should not be characterized as illicit behavior. Rather, as in stealing from a thief (which, logically, cannot be done; one can only liberate crook's ill gotten gains), same applies to present case. If A is victim of initial counterfeiting, and B (the bank, and/or government) is guilty party, responsible for first, and illegitimate, episode of counterfeiting, then when C (the counterfeiter) counterfeits counterfeit money improperly created by B, C is innocent of any wrongdoing. Davidson (2009) demurs. She charges that in my focus on A, B, and C, I have ignored X. And who are these worthies? States Davidson (2009): they are the private holders of B's counterfeit notes who are neither original owners of gold or silver nor a part of any counterfeiting scheme. My critic goes on to wax eloquent about how truly innocent and victimized are Xs, all of which, unhappily, is completely true. I regard Davidson's argument as extremely original, pertinent, and insightful in general, and in particular with regard to her creative introduction of Xs. Nevertheless, I remain unconvinced. No doubt Xs have little or no choice. But, still, I contend, they are not entirely innocent, (1) such that they have a right not to have value of their dollar notes reduced by our counterfeiter of counterfeit bills. (2) Suppose that one day, all Xs of world become fed up, sick and tired of fiat currency that has been foisted upon them for lo these many years. However, they are powerless to overcome powers that be; central banks, Fed, government that backs up these illicit organizations at point of a gun. One of Xs says to his confreres: Hot diggity; I have an idea! Let us all become counterfeiters (of course of counterfeit, not legitimate, money); if we all do so, powers that be will be unable to stop us all; then and only then can we rid ourselves of this monetary pox. With massive counterfeiting, we will make Germany of 1923, and Zimbabwe of early 21st century look like pikers. This sounds like a pretty good plan to me; at least, I have heard worse, far worse. However, squarely standing in way of this wonderful idea is what I would characterize as mistaken analysis of Davidson (2009). (3) For, it is her view that counterfeiting counterfeit money is per se illicit. If so, then long suffering masses of whom Davidson is so protective will have this road to freedom barricaded, paradoxically, by her perspective. If a slave objects to freedom, one has to wonder whether there is real slavery afoot or not. Suppose, now, that only some of Xs adopt this policy of undermining fiat currency through massive counterfeiting, thus creating hyperinflation, which will bring this system to a halt. Call them As. In contrast, Bs refuse to go along with other Xs, and thus in effect support status quo. (4) The Bs, as does Davidson, oppose counterfeiting counterfeit money. What can we say about Bs, under such circumstances? At very least, their claim to complete innocence starts to look a bit tarnished (as in case of slaves who oppose liberation). But, if so, then, so does coherence of their (and Davidson's) opposition to counterfeiting counterfeit money start to crumble. I have some difficulty with this statement of Davidson's (2009): since members of X are forced to use fiat money, and have only one viable medium of exchange, it can be seen that such money, in fact, ceases to be counterfeit in their hands. First, it is not strictly true that Xs are forced to use U.S. fiat currency. Rather, they are all but prevented from using anything else. (5) Second, it is not clear why counterfeit money radically changes its status due to this force imposed by governmental central banking. …
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