Contra Davidson on Counterfeiting, Round Two

8/13/2019 Contra Davidson on Counterfeiting, Round Two

1/38

Contra Da*idson onCounterfeiting, $ound ./o

Contra Da*idson en torno a la falsificacin, segundo asalto

B$"8ER E 3"-C>

"o*ola Universit* 6eH -rleans

H=locGNlo*noedu

#stract: "i=ertarians and non li=ertarians aliGe agree t+at

counterfeiting legitimate mone* oHned =* innocent people is illicit 3ut

H+at a=out counterfeiting counterfeit mone* oHned =* t+e guiltlessV

avidson and / =ot+ li=ertarians/ taGe t+e position t+at t+is Hould =e

a rig+ts violationS t+at t+is Hould violate t+e rig+ts of innocent oHners

of currenc*/ H+o Hould =e victimi'ed =* suc+ fraudulent =e+avior of

counterfeiters/ even t+ose H+o limit t+emselves to counterfeiting

counterfeit funds 3ut H+at a=out counterfeiting counterfeit mone*

oHned =* t+ose H+o are guilt* of crimesV avidson (KL1J) opines/ in

effect/ t+at t+ere are no suc+ people 8+e counterfeiter of counterfeit

mone* is t+us +imself a criminal/ s+e avers argue/ ver* muc+ to t+e

contrar*/ t+at t+e relevant population consists mostl* of guilt* people/

and t+us t+e* are not in a logical position to o=


2/38

J B$"8ER E 3"-C>

for committing a crime 0o/ for purposes of our discussion/ He Hill =e

considering onl* t+e imaginar* countr* of >rugmanania

4ey /ords: Counterfeiting/ fiat currenc*/ ro==er*/ fraud/ #E" categor*:

>14S EQ

$esumen: "i=ertarianos * no li=ertarianos coinciden por igual en Oue la

falsificacin de dinero leg2timo pose2do por personas inocentes es il2cito

ero jOu pasa con la falsificacin de dinero falso pose2do por los no

culpa=lesV avidson * *o/ am=os li=ertarianos/ pensamos Oue esto ser2a

una violacin de los derec+osS pues socavar2a los derec+os de los

inocentes propietarios del dinero/ Oue ser2an v2ctimas del comportamiento

fraudulento de los falsificadores/ incluso del de Ouienes se limitan a la

falsificacin de fondos falsificados ero jOu pasa con la falsificacin demoneda falsa propiedad de Ouienes son culpa=les de cr2menesV avidson

(KL1J) opina/ en efecto/ Oue no +a* tales personas Ella afirma Oue el

falsificador de dinero falso es ciertamente un criminal Fo sostengo/ mu*

por el contrario/ Oue la po=lacin relevante est& compuesta en su ma*or2a

de gente culpa=le/ * por lo tanto no est&n en posicin lgica de oponerse a

lo Oue de otra manera ser2a considerado una victimi'acin Con respecto

a los pocos inocentes Oue +a*a entre ellos/ en gran medida demuestran su

inocencia al nooponerse a la falsificacin de moneda falsa 0i se oponen/

* emprenden acciones para prevenir esta pr&ctica/ actan de manera

incompati=le con el principio de no agresin li=ertario (6$) * por lo tanto

pasan a engrosar las filas de los culpa=les Considero Oue el an&lisis

econmico de avidson es impeca=le/ pero Oue su comprensin del

li=ertarismo es altamente pro=lem&tica

En aras de la divulgacin completa/ de=o de


3/38

Contra Davidson on counterfeiting, round two J7

&5 &ntroduction

+e United 0tates is a Honderful countr* t is e,ceptional t is t+e

=est nation t+at noH e,ists/ or t+at ever e,isted Fou do not =elieve

me on t+is assessmentV +ave it on good aut+orit*1 B+at isZ$merican e,ceptionalism[V 3imrose (KL1J) e,plains:88o advocate for $merican e,ceptionalism toda* means to =elieve ferventl* in t+e

superiorit* of our nation concerning all matters 8+e uns+aGea=le =elief t+at if

$merica does it/ t+en it must =e rig+t $merica is =e*ond reproac+ and is =etter

t+an ever*one else

Fes/ +ear *e/ +ear *e: t+e U0 is magnificent t can do no Hrong

8+at is one of t+e =asic assumptions of t+is articleK

am going to defend t+e notion t+at it is not a violation of li=ertarian

laH to counterfeit fiat currenc* 0ince $merica is =e*ond reproac+/J

cannot =e discussing U0 dollars nstead/ He Hill =e anal*'ing t+e >rug/

H+ic+ is t+e currenc* of t+e imaginar* countr* >rugmanania 8+is latter

nation +as roug+l* LL militar* =ases in a=out 1L foreign countries4t

is t+e onl* one to +ave ever dropped an atom =om= on masses of innocent

civilians ts defense =udget is larger t+an t+at of t+e fourteen nationsY

ne,t largest militar* e,penditures t drops drones on terroristsQ t+e

Horld overt is altoget+er a ver* =aaaad countr*/ t+roHing its Heig+taround militaril*/ =ull*ing HeaGer nations all over t+e Horld/ mi,ing in to

t+e affairs of ot+er rugmananiaS He Hill t+en rela,

t+ese malevolent assumptions/ and enOuire as to t+e propriet* of doing

precisel* t+e same t+ing to a ver* different nation/ to Hit/ !reenspanania

1 >ristol and >agan/ 199S >raut+ammer/ KLL4S -YConnell/ KLLK?KLLJS Ro


4/38

J B$"8ER E 3"-C>

8+is countr*/ in s+arp contrast to >rugmanania/ strictl* folloHs t+e

li=ertarian non aggression principle (6$)/7e,cept in one arena/ monetar*

polic*

s+all interpret avidson (KL1J) as opposing counterfeiting of t+e

fiat currenc* of eit+er of t+ese nations/ =ot+ >rugmanania and!reenspanania t+anG avidson (KL1J) for +er Gind comments a=out

3locG (197) .oHever/ H+en s+e mentions counterfeiting as +eroic as

(KL1J/ 7) Zone case H+ere (m*) defense is more t+an a little

controversial[ t+inG s+e reall* means onl* ZHit+in li=ertarian circles[

0urel*/ man* of m* ot+er c+apters of 3locG (197)/ if not all of t+em/ are

+ig+l* controversial outside of t+e li=ertarian communit* t+inG +er

summar* of m* de=ate Hit+ Mac+a< (KLL7)/ Murp+* (KLL)/ 3locG (KL1La/

KL1L=) is ver* accurate/ and appreciate +er fair mindedness inarticulating t+ese matters

regard avidson (KL1J) as a meticulous and t+oroug+

e,amination/ from an $ustrian point of vieH/ =ut not a li=ertarian one/ of

a +ig+l* comple, and poorl* studied economic p+enomenon:

counterfeiting 0+e offers us man* important insig+ts from =ot+ fields:

li=ertarian t+eor* and t+e macroeconomics of counterfeiting

6evert+eless/ on our main issue of contention/ He must continue to

disagree maintain t+at e,tant fiat currenc* is counterfeit/and t+erefore

it is impossi=le for a private replicator of t+ese notes to =e an illicit

counterfeiter/ particularl* in a vicious depraved/ murderous and immoral

nation suc+ as >rugmanania Rat+er/ +e must =e a legitimate

counterfeiter/ acting compati=l* Hit+ t+e li=ertarian 6$ Counterfeiting

counterfeit mone* cannot =e an* more of a crime under t+e li=ertarian

code of laH an* more t+an can =e stealing alread* stolen mone*

n m* critiOue of avidson (KL1J)/ s+all folloH t+e organi'ation of

+er paper: Zn sections K and J =eloH/ outline tHo fundamental pro=lems

Hit+ (avidsonYs) analog* H+en applied to t+e counterfeiting of counterfeit

mone* 0ections 4 and Q address t+e issue of H+* counterfeiting is a

crime and +oH it affects propert* titles/ =ot+ in a commodit*?=ased

s*stem and in a purel* fiat s*stem 0ection e,plains H+* fiat notes are

not counterfeit/ and section 7 taGes issue Hit+ (avidsonYs) description of

fiat mone* as illegitimate 0ections and 9 reveal t+e nature of t+e crimes

7 Rot+=ard 197J/ 19K

speaG of course noH and for most of t+e remainder of t+e paper of t+e imaginar*countr* >rugmanania

Las Torres de Lucca6I J (


5/38

Contra Davidson on counterfeiting, round two J9

committed =* t+e government and t+e private note producer in a fiat

s*stem (avidsonYs) utilitarian arguments in favor of t+e private

counterfeiter are disputed in section 1L 0ection 11 concludes[

&&5 #nalogyavidson (KL1J) is perfectl* correct H+en s+e states:

B+en He descri=e an article as _stolen/Y He impl* it is associated Hit+ onl* one

specific action: t+eft Moreover/ no ot+er o=


6/38

4L B$"8ER E 3"-C>

&&&5 #nalogy, part &&

.ere m* colleague maGes a ver* important point/ and +er anal*sis is

flaHless 8+ere ma* Hell =e a marGet in GnoHn?to?=e ancient counterfeit

coins f so/ to pass one off Hit+ no fraud cannot =e counterfeiting n t+is

conte,t/ suc+ coins are not reall* counterfeit nstead/ t+e* are aGin to 9

o=


7/38

Contra Davidson on counterfeiting, round two 41

V5 Counterfeiting money and property titles

"et us start t+is section off Hit+ *et anot+er agreement $ccording to

avidson (KL1J/ 7Q): Zt is not a crime to =u* or sell t+e instrument of a

previous crime if t+ere is no intent to use it in an* future crime[ 8+ere is

no more of a crime committed +ere =etHeen tHo consenting adults

regarding t+e ancient de=ased coin/ t+an t+ere Hould =e regarding t+e

Rem=randt cop*/ and no fraud taGes place

$t last +oHever He arrive at a point of s+arp contrast avidson

(KL1J/ 7Q) states ZB+en t+e private counterfeiter enters t+e scene/ t+e

onl*


8/38

4K B$"8ER E 3"-C>

8+erefore/ He conclude t+at even t+oug+ t+e propert* Has originall* stolen/ t+at

if t+e victim or +is +eirs cannot =e found/ and if t+e current possessor Has not

t+e actual criminal H+o stole t+e propert* or in any other way offended the

li'ertarian /"P to a degree sufficient that it would 'e )ustified to punish him,

whether 'y li'erating his property, or su')ecting him to counterfeiting/ t+en title

to t+at propert* =elongs properl*/


9/38

Contra Davidson on counterfeiting, round two 4J

least in terms of overall (imperialistic) foreign polic* 3ot+ parties +ave

supported a s*stem H+ere >rugmananian forces are ensconced in a=out

1/LLL militar* =ases in some 1L foreign nations Eac+ part* sees t+is/

mira=le dictu/ as defense/ not offense/ =ut Hould strenuouslyo=rugmanania emplo*s drones to Gill innocents from t+e sGies in several

foreign countries1K B+en on 0aul mentioned t+e desira=ilit* of

emplo*ing t+e !olden Rule in 0out+ Carolina1J+e Has roundl* =ooed at

+issed at/ =* t+e ver* mem=ers of t+e general population avidson is so

intent upon protecting from t+e Hiles and supposedl* fraudulent =e+avior

of t+e counterfeiter >rugmanania is t+e onl* nation to +ave dropped a

nuclear device on civilians

n t+e Hords of Dance/ KL1J:8+is statement _"and of t+e %ree 3ecause of t+e 3raveVY is H+at


10/38

44 B$"8ER E 3"-C>

and in


11/38

Contra Davidson on counterfeiting, round two 4Q

radical militantsS t+e* are not driven =* ideolog* =ut rat+er =* a sense of

revenge and despair `b $nti?$mericanism is far less prevalent in Femen t+an

in aGistan 3ut rat+er t+an Hinning t+e +earts and minds of Femeni civilians/

$merica is alienating t+em =* Gilling t+eir relatives and friends `b

3uc+anan (KL1J) made a passionate and eloOuent plea for peaceand neutralit* Hit+ regard to 0*ria1Q.e concluded:

3efore He slide into anot+er Har/ let t+e countr* (t+e U0 electorate) =e

consulted first 8+e pro=lem Hit+ t+is plo* is t+at =ot+ Romne* and -=ama

supported U0 imperialism prett* muc+ an*H+ere in t+e Horld H+ere $merica

+as an interest and t+is e,empts nowhere 3etHeen t+e tHo of t+em/ t+e*

attracted almost 1LLk of t+e votes 8+is indicates t+at t+e U0 electorate

wouldsupport t+is or an* ot+er additional Har if t+e* Here H+ipped up to a

sufficient fren'* 8+ose +oodlums H+o c+ant U0$/ U0$ never met an

imperialist venture t+e* did not liGe

8+ese are t+e innocent people H+o deserve to =e protected from

counterfeitersV avidson (KL1J) sa*s *es .oH s+e sOuares t+is Hit+ +er

undou=ted and strong ad+erence to li=ertarianism is simpl* =e*ond me

8+e average !erman during t+e 6a'i period can per+aps =e forgiven/

at least more so t+an t+e average mem=er of >rugmanania 8+e former

participated in a democratic process t+at resulted in t+e mass murderer

.itler only once n s+arp contrast/ t+e electorate of >rugmanania

anointed a series of mass murderers/ one of H+om dropped an atom =om=

on innocent civilians/ all of H+om placed imperialist armies on foreign

soil/ and t+e latest of t+em H+o e,ults in dropping drones on populaces

H+o +ave not initiated aggression against t+e +ome territor* of t+at

imaginar* countr* 8+e !ermans lived in an era =efore t+e Hidespread

implementation of electronic media (television/ t+e He=/ etc) t+at Hould

ena=le t+e populace to GnoH precisel* H+at t+eir lords and masters Here

doing in t+eir name 8+e same cannot =e said for t+e in+a=itants of

>rugmanania

B+at +as all of t+is to do Hit+ counterfeiting counterfeit mone*V 8+e

general population +as supported all of t+is Ent+usiasticall* 8+e tHo

marugmananians/ constitute some 1k of t+e electorate

8rue/ onl* a=out QLk of eligi=le voters pull t+e =allot lever 3ut t+ere is

1Q 0ee also i"oren'o/ KL1J= and 0c+euer/ KL1J in t+e same vein



12/38

4 B$"8ER E 3"-C>

strong evidence t+at t+e* too are complicit in t+e evil perpetuated =* t+e

>rugmanian imperialism and murder: t+e* spontaneousl* applaud

soldiers at airportsS t+e* tie *elloH ri==ons around treesS t+e* stand for/

and sing/ t+e star spangled =ananaS t+e* salute t+e >rugmananian flagS

t+e* ledge $llegiance to itS t+e* Hors+ip our troopsS t+e* purc+ase>rugmananian =onds

$ssume t+at t+e ruling class1of >rugmanania/ comprising 1k of

t+e populace/ is all poHerful 8+e* +ave =ri=ed/ su=orned/ carugmanania/ +ave a ver* good ero, mac+ine t+at can create +ig+

Oualit* counterfeit mone* 8+is is t+eir onl* Heapon avidson (KL1J) is

sa*ing t+e* s+ould not use it/ =ecause it mig+t negativel* impact someinnocent users of fiat currenc* in t+is far aHa* nation

0+e and +ave a ver* different vieH of t+e legal status/ under

li=ertarian laH/ of t+ose H+o use >rugmananian fiat currenc*/ namel*/ all

of t+e >rugmananians17 n +er vieH/ t+ose H+o do so are entirel*

innocent 8ouc+ a +air of t+eir innocent little +eads/ as does t+e

counterfeiter of counterfeit mone*/ and *ou are a rig+ts violator M* claim/

in ver* s+arp contrast/ is t+at t+is aut+or does not reall* appreciate t+e

evil and depravit* of t+e >rugmananian government and t+e roug+l* 99k

of its citi'enr* H+o support it f s+e saH more deepl*/ if s+e +ad on not

onl* +er $ustrian e*eglasses/ =ut +er li=ertarian ones too/ s+e Hould/

t+inG/ acOuiesce in t+e notion t+at t+e prover=ial 99k of t+e

>rugmananians are not Ouite as innocent as s+e =elievesS t+at t+e* are

estopped (>insella/ 199K/ 199) from o=rugmanania in t+eir mass murder all

around t+e glo=e

0uppose a revolutionar* sei'es a >rugmananian ost -ffice/ sc+ool/

1 0ee om+off/ 197/ 1971/ 199S .oppe/ 199LS .ug+es/ 1977S >olGo/ 19JS Mises/

197S -ppen+eimer/ 197QS Raico/ 1977S RocGHell/ KLL1

17 8+e onl* e,ception Hould =e t+ose H+o limit t+emselves to =arter/ and5or are self?sufficient and use no mone* eit+er



13/38


museum or census =ureau 8+ose supposedl* innocent citi'ens of

>rugmanania H+o depend upon t+ese institutions Hill =e +armed 3ut

Hill t+eir rig+ts =e violatedV avidson (KL1J) in effect sa*s Fes sa* 6o

Consider t+e folloHing case $n opponent of t+e 6a'i1regime =reaGs

into one of t+eir garages .e is a=out to set fire to t+e entire place H+ic++ouses cars/ tanGs/ trucGs/ motorc*cles/ etc $ssume t+at is t+e onl* Ha*

t+is opponent of t+e $r*an Regime can oppose it $n innocent citi'en

o=rugmananian currenc* and 6a'ive+icles .oHever/ if s+e accepts it/ and remains true to +er counterfeiting

anal*sis/ s+e Hould +ave to consider =ot+ t+e counterfeiter of

>rugmananian counterfeit mone*/ and t+e destro*er of 6a'i trucGs and

tanGs/ guilt* of rig+ts violations regard t+is as a reductio ad a=surdum

of +er position

$m sa*ing t+at all of t+e citi'ens of >rugmanania are guilt* (Reic+/

KLL9) for t+e depredations of t+eir governmentV 6o -f course not $

t+ousand times no $t least 1k of us are entirel* innocent19 "et us

suppose t+ere Here a li=ertarian 6urem=erg trial and asG H+o Hould =e in

a Horse position in t+e docGs: t+e average citi'en of 6a'i !erman*KLor of

>rugmananiaV t is clear t+at t+e latter Hould =e in a far Horse position

%or t+e former onl* participated in an electoral s*stem t+at eventuated in

mass murderer .itler once $fter t+at/ t+is monster sei'ed control n

contrast/ t+e >rugmananian electorate voted for a series of mass murdersS

1 t is +ard to get up a full +ead of steam against >rugmanania 8oo man* peoplesupport it t is far easier Hit+ t+e 6a'is 8+anG goodness for t+em in t+is oneregard t is difficult to t+inG of an* ot+er =oge*man H+o


14/38

4 B$"8ER E 3"-C>

t+e* +ad a c+oice eac+ time/ and t+e* c+ose =adl* time and againK1

8+ere is at least poetic rugmananian

fiat currenc*/ as opposed to its trucGs %or t+e former alloHs t+e

>rugmananian government to Hage imperialistic Hars more generall*

t+an t+e latter 8+ere are onl* t+ree Ha*s t+e state can raise funds topursue its evil ends: ta,es/ =orroHing and inflation 8+e disadvantage/

from its point of vieH/ Hit+ t+e first tHo is t+at ever*one GnoHs full Hell

H+o is responsi=le for t+em Even persons of t+e meanest intelligence do

not t+inG t+at capitalists (directl*) collect ta,es/ or sell U0 =ondsKK

8+us/ t+e ruling class of >rugmanania is particularl* vulnera=le Hit+

regard to its fiat currenc* $n*t+ing t+at attacGs it at t+is HeaG point is

particularl* poHerful Counterfeiting does precisel* t+is

avidson (KL1J/ 7) maGes H+at mig+t =e construed as a fatalconcession to m* perspective on t+is matter 0+e avers: Z`b t+e origin of

fiat mone*/ from a +istorical point of vieH/ Has t+e counterfeiting of

claims to precious metals[ f fiat mone* is a counterfeit of gold/ silver/

etc/ t+en counterfeiting fiat mone* is trul* a counterfeiting of counterfeit

mone*/ m* oHn position avidson folloHs t+is up/ +oHever/ Hit+ a

Oualifier (i=id): Zt+is is not t+e case under present da* legal tender laHs[

3ut it is difficult to see H+* t+is latter claim is even of relevance C steals

somet+ing from at time t1 $t time tK/ C no longer steals an*t+ing else

from CYs =e+avior at tK is o=viousl* prefera=le to +is at t1 3ut/ still/ /

or an*one else/ is


15/38


our aut+oress seems to impl*

t+inG understand avidsonYs (KL1J/ 7) p+rase genuine fiat

mone* t is fiat currenc* put out =* t+e genuine or proper or legitimate

people/ t+e statists n contrast/ non genuine fiat mone* comes to us

courtes* of t+ose counterfeiters H+o are attacGing t+e >rugmananianEmpireKJ8+is is aHGHard ver=iage/ to sa* t+e least/ to =e emplo*ed =* an

eminent li=ertarian t+eoretician suc+ as avidson t implies t+at statism

is


16/38

QL B$"8ER E 3"-C>

+ig+l* relevant to +oH t+e >rugmananian government engaged in its

un


17/38

Contra Davidson on counterfeiting, round two Q1

avidson so =lind to t+ese actions and5or so read* to let t+em off t+e

+ooG for t+emV

er+aps t+is lacunae is due to +er undul* narroH focus 0+e (KL1J/

7) states: Z3ut H+at actions of t+e pu=lic involving the fiat money are

illegitimateV[K4

B+* o+ H+* must our scrutin* of t+e actions of t+eaverage mem=er of societ* =e limited to +oH +e involves +imself Hit+ fiat

currenc*V avidson does not reveal an* defense of t+is artificial

=oundar* 0uppose all in+a=itants of >rugmanania Here murderers and

rapists/ $ t*pes/ or/ aiders and a=ettors of t+ese +einous crimes/ 3

t*pes/ =acGers and ena=lers B+* ma* t+e* not =e attacGed in t+eir fiat

dollar filled pocGet =ooGs/ given t+at more severe punis+ment is presentl*

=e*ond t+e capa=ilities of t+e feH li=ertarian in+a=itants of >rugmanania/

t+e +eroic counterfeitersV avidson never enlig+tens usM* presumption is guilt* until proven innocent/ given t+e massive

support for our troops a=road/ Gilling people H+o never t+reatened us

>rugmananians 6aturall*/ t+is presumption can =e overcome Evidence

Hould include mem=ers+ip in t+e >rugmananian "i=ertarian art*/KQ

t+ose H+o donate to li=ertarian t+inG tanGs espousing laisse' faire

capitalism suc+ as t+e Mises nstitute/ supporters of t+e on 0aul

initiatives/ t+e %ree 0tate ro


18/38

QK B$"8ER E 3"-C>

natural laH for t+e pu=lic to stop t+e governmentrugmanania are ver*

vicious 8o attempt to overt+roH t+em is against t+e laH/ H+ic+ is H+*

discuss t+e fictional countr* +ave made up/ rat+er t+an an* one mig+t

ever live in or visit nstead/ an entirel* different matter/ call uponever*one to stop =acGing and ena=ling t+e statists =* among ot+er

t+ings applauding soldiers at airports/ voting for politicians in t+rall to t+e

neo conservatives (eg/ t+e tHo marugmananian depredations/Kcertainl* not from using roads/

currenc*/ pu=lic sc+ools/ etcK9

avidson gives t+e game aHa* H+en s+e concedes:

t s+ould =e pointed t+at =* ordinar* user mean all t+ose not directl*

connected Hit+ t+e state and its operations !overnment emplo*ees and

contractors/ Helfare recipients/ and ot+er direct =eneficiaries/ do indeed

conspire Hit+ t+e state to receive ta,pa*er or neHl*?issued mone* 8+e* are

K7 0ee on t+is 3locG/ 197K/ KLLK/ KLL4/ KLL/ KLL7/ KLL/ KLL9a/ KLL9=/ KL11a/KL11=/ 3locG and $raGaG*/ KLL/ 3locG and 3arnett/ KLL/ Y$mico and 3locG/

KLL7K Bolf opines: Z$mericans are far more aHare t+an t+e* Here 1K *ears ago of t+eir

oHn slaug+ter of innocents around t+e Horld 8+eir self?image is no longer t+at oft+e _good gu*s/Y against H+om an act of violence is mad and ine,plica=le[ t+inGt+is is far too optimistic f so/ +oH t+en did t+at Hinner of t+e 6o=el eace ri'e/

of all t+ings/ get elected presidentV

K9 $nd/ also/ not to o=


19/38

Contra Davidson on counterfeiting, round two QJ

accessories/ and t+eir acOuisition isillicit

3ut H+at a=out people H+o activel* support t+e stateV 3ar=ra

0treisand/ 0+eldon $delson/ t+e .oll*Hood glitterati ma* not =elong in t+e

categories adum=rated =* avidson/ =ut t+e* assuredl* ena=le t+e state

to do its dirt* =usiness 8+e* do so to a far greater degree t+an a mere

Helfare Oueen/ or an emplo*ee of t+e government suc+ as a sanitation

HorGer or postal clerG B+at a=out t+e e,ecutives of companies suc+ as:

$lliant 8ec+s*stems/ $rc+er aniels Midland/ 3$E 0*stems/ 3lacG+aHG

ndustries/ 3lacGHater/ 3oeing/ C+r*sler/ Colt/ !eneral *namics/

!eneral Motors/ !oldman 0ac+s/ .alli=urton/ >. efense 0*stems/

"enco/ "ocG+eed Martin/ Martin?Marietta/ Monsanto/ 6ort+rup

!rumman/ -s+Gos+ efense/ Ra*t+eonS are t+e* all innocentV B+at

a=out for all love t+e millions of people H+o =etHeen t+em voted for

tHeedle dee -=ama and tHeedle dee Romne*V B+* are t+e* to =e declared

innocentV 8+ese folGs are not to =e considered accessoriesV avidson/ it

Hould appear/ t+inGs rugmananiaV

V&&&5 .he nature of go*ernment8s crime in a fiat system

8+at is a ver* interesting title of t+is section of avidsonYs paper:

Z8+e nature of governmentYs crime in a fiat s*stem[ .er economic +at is

firml* placed upon +er +ead H+en s+e Hrites t+is/ =ut/ alas/ +er

li=ertarian +at is noH+ere to =e found in t+is section .ad s+e =ut

emplo*ed it/ avidson Hould +ave dug deeper and noted t+at t+e nature

JL


20/38

Q4 B$"8ER E 3"-C>

of t+e >rugmananian governmentYs crime Hit+ regard to fiat currenc* is

not at all e,+austed =* +er correct note of t+ings liGe Zreducing mone*Ys

o=rugmanania/ Gilling innocents =* t+e +undreds of t+ousands 6oH that

is a muc+ more serious crime/ made possi=le to a significant degree =*

our present fiat s*stem

&95 .he "ature of the -ri*ate oney -rinter8s Crime in a ;iat System

avidson (KLLJ/ 1) opines: ZBit+in t+is milieu/ a private mone*printer cannot +ave an* moral


21/38

Contra Davidson on counterfeiting, round two QQ

surreptitiousl* na=s a feH of t+e store oHnerYs Hares for +imself s not t+is

under+anded villain a part of t+e ro==er* too/ even t+oug+ +e did not

orc+estrate itV $t t+e ver* least/ +e is an opportunistic t+ief

strongl* resist avidsonYs c+aracteri'ation of t+e +eroic li=ertarian

counterfeiter as some sort of pett* t+ief/ a


22/38

Q B$"8ER E 3"-C>

created =* t+e state apparatus !enuine fiat mone* is a logical +oHler/ at

least for t+e li=ertarian

$gain s+e (KL1J/ 4) attempts to emplo* t+e fallac* t+at t+ere are

masses of people Znot associated in an* Ha* Hit+ t+e government or t+e

=anGs[ H+o Hill =e t+e innocent victims of t+e counterfeiter of counterfeitmone* Hould dearl* liGe to see +er evidence for t+is trul* outrageous

claimJJ

$gain Hit+ t+e Zsevere +ards+ip for millions of people[ (KL1J/ Q)

%irst of all/ t+ese millions of people ric+l* deserve severe +ards+ip as

punis+ment for t+eir evil support of mass murder 0econdl*/ if Zsevere

+ards+ip for millions of people[ Here t+e proper criterion for all

li=ertarians to avoid liGe t+e plague/ t+en virtuall* no ot+erHise


23/38


more destructive t+an a =it of counterfeiting of counterfeit mone*

0econdl*/ suppose t+ere Here 1LLL slaves on t+e s+ip/ and onl* four Here

innocent (t+e ot+ers/ He ma* assume/ Here rig+tfull* condemned to

slaver* Ximprisonment/ for +einous crimes) 8+e impetuous slave/ of

course/ is our counterfeiter of counterfeit mone* 8+e ot+er t+ree/ let ussa*/ are Murp+*/ Mac+a< and avidson 8+e four of t+em +ave =een

un


24/38

Q B$"8ER E 3"-C>

legitimate avenues B+at can s+e possi=l* meanV Electing on 0aul to

t+e presidenc* of >rugmananiaV 8ried and failed .olding anot+er

conference on t+e evils of fiat currenc*V Briting *et anot+er article or

=ooG on t+is su=


25/38


no longer an* pretense regarding redemption 3ut/ still/ He once upon a

time +ad a monetar* s*stem t+at at least partiall* resem=led a free

enterprise one 8+roug+ a series of steps/ He noH +ave un=acGed pieces of

paper 8+e ver* same government5central =anG institutions responsi=le

for t+is su=stitution are not to =e considered counterfeitersV maintain/in contrast/ t+at H+ile t+e outaHr* of competing monies is indeed also a

violation of t+e natural laH/ t+is =* no means e,+austs t+e guilt of t+e

government5central =anG Even if t+e* suddenl* alloHed competing

media of e,c+ange t+e* Hould still not =e guiltless 8+at is far from t+eir

onl* crime Moreover/ avidson admits t+at present institutional

arrangements constitute a violation of t+e natural laH Fet/ s+e a=+ors

undermining t+is s*stem

$ccording to Rot+=ard (199/ emp+asis added):8+e idea prevails t+at to favor gold or silver mone* is to =e a moss=acG

reactionar*S not+ing could =e furt+er from t+e trut+ %or gold (as Hell as silver)

is t+e eopleYs Mone*S it is a valua=le commodit* t+at +as developed/ on t+e free

marGet/ as t+e monetar* means of e,c+ange !old +as =een replaced/ at t+e

dictate of t+e 0tate/ =* fiat paper X=* pieces of paper issued and imprinted =*

t+e government !old cannot =e produced ver* easil*S it must =e dug

la=oriousl* out of t+e ground 3ut if paper ticGets are to =e mone*/ and t+e

0tate is to +ave t+e sole poHer to issue t+ese virtuall* costless ticGets/ t+en He

are all at t+e merc* of t+is gang of legali'ed/ sovereign counterfeiters Fet t+is ist+e accepted monetar* s*stem of toda*

recisel* t is government t+at is t+e counterfeiter 8+e counterfeiter

of t+is governmental counterfeit mone* acts in t+e e,act opposite

direction of t+e statist counterfeiter avidson is =acGing t+e Hrong +orse/

+ere

Rot+=ard (199) continues +is intellectual assault on t+e position

laid out =* avidson: Z`b fractional reserve =anGing XnoH a s*stem at

t+e =e+est and direction of t+e %ederal Reserve 3anGsX is/ liGe fiat paper/legali'ed counterfeiting b[ $nd again (Rot+=ard/ 199): Z%ederal

Reserve 6otes b are not laHful mone* -nl* gold and silver coin b can

=e made legal tenderb[ $nd once more/ Hit+ feeling:

8+e test `b is actionS action noH vis ? vist+e 0tate 8+ose H+o side Hit+ t+e

li=erties of t+e people against t+e government are our friends and alliesS t+ose

H+o side Hit+ t+e 0tate against t+e people are our enemies t is as simple as all

t+at 8+e pro=lem/ as far as t+e Rig+t goes/ is t+at in recent *ears t+ere +ave

=een 'ero actions =* t+e Rig+t against t+e 0tateS on t+e contrar*/ t+e Rig+t +as

almost invaria=l* =een on t+e side of t+e 0tate



26/38

L B$"8ER E 3"-C>

t Hould appear t+at t+e position staGed out =* avidson is on t+e

Rig+tS s+e opposes t+is Hould?=e attempt to rid us of fiat currenc*J

Be noH move from >rugmanania to !reenspanania 8+e latter

m*t+ical countr* is a verita=le saint compared to t+e former 6ot for it

mass murder all around t+e glo=e t esc+eHs all sort of ot+er governmentinterventions t+at Gill people: socialist roads/ t+e drug Har/ t+e %$/ t+e

outlaHr* of marGets in used +uman =od* parts t is entirely li=ertarian/

e,cept for one small matter: it still indulges in counterfeit currenc*J7

Bould counterfeiting counterfeit !reenspananian mone* =e rugmanania/ since t+e in+a=itants oft+e latter are far more deserving of victimi'ation



27/38


income streams Hill =e reduced=* t+is enterpriseV

t is important to distinguis+ =etHeen deontolog* and utilitarianism

$ li=ertarian 6urem=erg trial is ric+l* deserved for all t+ose H+o +ave

violated li=ert* 8+at is a matter of deontolog* .oHever/ if it Here

t+reatened/ or GnoHn to =e imposed Here li=ertarians to taGe over societ*/t+e reaction to t+is t+reat mig+t Hell lessen t+e liGeli+ood of success in

t+is regard in t+e first place 8+at is a utilitarian or pragmatic concern

er+aps it mig+t turn out =etter for t+e goal of implementing li=ert* if no

violators Here punis+ed (even t+oug+/ deontologicall*/ t+e* full* deserve

it) and instead a trut+ and reconciliation s*stem Here implemented 8+is

is an empirical issue t+at cannot =e settled =* t+eor* alone

Counterfeiting counterfeit mone* is


28/38

K B$"8ER E 3"-C>

status Ouo

$ssume t+at


29/38

Contra Davidson on counterfeiting, round two J

gold) osit t+at avidson and agree t+at t+e supplanting of t+e former

Hit+ t+e latter Hill improve matters/ not Horsen t+em/ for t+e average

marGet participant avidson must t+en =e operating/ implicitl*/ under

t+e assumption t+at time preferences are too +ig+ for t+e advantages to

outHeig+ t+e disadvantages 3ut/ s+e offers no evidence for t+is empiricalclaim -n t+e ot+er +and/ cannot of course apodicticall* maintain t+at

on net =alance/ H+en all present discounted values are incorporated into

t+e anal*sis/ t+e =enefits of a 1LLk gold =acGed dollar (Rot+=ard/ 19K)

Hould =e greater t+an t+e costs (t+e initial period of +*perinflation if t+e

counterfeiting of counterfeit mone* is successful in ruining t+e present

s*stem of fraudulent mone* in favor of its free enterprise alternative) 3ut

it Hould appear t+at t+e =urden of proof rests Hit+ +er t is s+e H+o is

maintaining t+at counterfeiting counterfeit mone* Hould =e +armfulSHould =e aGin to t+eft

0+e cites Rot+=ard to t+is effect 3ut t+at sc+olar in t+e Hritings of

+is mentioned =* avidson never contemplated a li'ertariancounterfeiter/

H+o Has acting so as to supplant fiat currenc* Hit+ gold Rat+er/ +e +ad

in mind t+e ordinar* run of t+e mill criminal counterfeiter H+o Has out

for +is oHn gain/ and Hilling to engage in fraud against innocent people

id Rot+=ard in an* of +is Hritings ever contemplate t+e Gind of

counterfeiter avidson and are disagreeing a=outV -nl* once to t+e =est

of m* GnoHledge/ and onl* t+en ver* indirectl* Rot+=ard did Hrite t+e

forHard to 3locG (197) t Has in t+at volume t+at first raised t+e issue

of t+e counterfeiting of counterfeit mone* t is unliGel* t+at Rot+=ard

Hould +ave Hritten t+at ver* complimentar* forHard +ad +e s+arpl*

disagreed Hit+ an* of its contents -n t+e ot+er +and/ it is entirel*

possi=le t+at +e did not read eac+ and ever* Hord of it H+en +e Hrote t+at

introduction t is entirel* liGel* t+at +e onl* glanced over it/ per+aps

reading a c+apter or tHo of it to get t+e general idea .e mig+t Hell +ave

not even read a Hord of t+e non controversial c+apters Hit+in t+e free

enterprise communit*/ suc+ as t+ose on rent control/ minimum Hages/

free trade/ etc 3ut it is e,ceedingl* liGel* t+at +e Hould +ave at least

looGed at t+e more controversial c+apters (=lacGmail/ li=el/ *elling fire)/

and certainl* among t+em Hould +ave =een t+at on t+e counterfeiter/

H+ic+ started off t+is entire t+read 8+us/ t+is is some at least HeaG

evidence attesting to t+e claim t+at Rot+=ard Hould +ave taGen m* side of

counterfeiting/ and so it +as tended to use it `b[



30/38

4 B$"8ER E 3"-C>

t+is de=ate/ not t+e one laid out =* avidson4Q

s t+e li=ertarian counterfeiter o=ligated to o=tain t+e permission of

t+e citi'enr* of >rugmanania =efore +e em=arGs upon +is deed of

li=erationV t+inG not Remem=er/ t+ese are t+e people H+o are

supporting t+e depredations of t+e >rugmananian government =ot+domesticall* (Baco) and a=road (all t+roug+out t+e Horld) 0uc+ an action

Hould not =e areto optimal t is not a case of at least one person =eing

=etter off/ and no one Horse off avidson/ at least so far/ along Hit+

Murp+* and Mac+arugmanania certainl* gain from present institutional

arrangements/ and Hould =itterl* protest an* move in t+e direction of

gold4

Consider t+e folloHing dialogue47H+ic+ appeared in t+e screenpla*

of t+e movie Catc+?KK Hritten =* 3ucG .enr*: .ere Minder=inder

speaGs Hit+ t+e stor*Ys main c+aracter Fossarian/ in t+e 197L film version

of #osep+ .ellers novel 8+e c+aracter 6atel* +as


31/38

Contra Davidson on counterfeiting, round two Q

*et understand/ =ut if *ou folloH t+e voluntar*ist p+ilosop+* to its logical

conclusion/ *ou Hill eventuall* understand %or li=ertarianism is

predicated upon t+e complete elimination of all statist accretions $nd one

of t+em is surel* governmental counterfeiting of mone* 0c+olars H+o

o=


32/38

B$"8ER E 3"-C>

9&&5 $eferences

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ConsumersY !ood/ or (Media of) E,c+ange !oodV[/ Review of

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+ttp:55misesorg5


33/38


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34/38

B$"8ER E 3"-C>

XX (KL11a)/ ZtYs $*n Rand 3as+ing 8ime/ -nce $gain[ %e=ruar* 1S

+ttp:55HHHleHrocGHellcom5=locG5=locG17K+tml

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CritiOue[ *ournal of Li'ertarian @tudiesS Dol KK/ pp Q9JTKJS

+ttp:55misesorg5


35/38


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36/38

7L B$"8ER E 3"-C>

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37/38


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38/38

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Contra Davidson on Counterfeiting, Round Two

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Transcript of Contra Davidson on Counterfeiting, Round Two