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Coinage Offense

24 Sep

As the historians report the coinage offense appeared along with the beginning of coinage stamping. The first counterfeiters illegally stamped the coins of lesser weight. In that way they “spared” such precious metals as gold, silver or platinum.

As the epoch of paper banknotes came the new era of coinage offense broke out. It was characterized by higher amounts of illegally produced currency and larger spread. Coinage offense was typical of both domestic and foreign affairs. There are many examples in the history of the humankind when the large sums of fake money were inserted to the economics of the enemy country before starting aggressive military campaigns. Even the governors couldn’t resist the enticement to become rich by producing the coins and banknotes illegally. For example the British monarch Henry the Sixth used to stamp a whole stock of silver coins in order to enrich his treasury. But these coins were fulfilling their function of exchange for a short time. The protest of the deceived citizens was so powerful that the coinage offense initiated by the king was stopped. The unlucky king was prosecuted.

In any country the exclusive monopoly to produce money is possessed only by the government. Producing the money the government should supply its citizens with the appropriate amount of goods and services. The coinage offense makes the government take responsibilities for the non-existing investors and that situation causes the good and money mass imbalance. The wastage and losses from coinage offense may be of various types. The mass increase of the currency inflow may worsen the macroeconomic situation as it will destabilize the national currency courses. The coinage offense is also one of the means of spreading the illegal income of the criminal structures. It diminishes the authority of the government and creates the social tension.

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Posted by on September 24, 2012 in Social Activities

 

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