A small leak can sink a ship. The fake dollars weren't knowingly accepted.
If public confidence in the value of money is lost, we're all in big trouble.
The Secret Service was right to pursue the case zealously.
I think the public take a pretty pragmatic view on this and don't care as long as they are not losing money on it. A few years ago it was estimated that 3% or so of the 1 pound coins in the UK were fake (there is now a more secure coin type); AFAIK the quality was pretty good, so they weren't glaringly obvious, and it seems no-one really cared - if the supermarket or pub would accept it, then it's effectively money, right?
> if the supermarket or pub would accept it, then it's effectively money, right?
Only long as you both accept the same shared understanding of what it is. If one of you believes it's counterfeit and the other doesn't (whether it actually is or isn't!)... then it's not effectively money, no. For example, I don't know about you, but I sure as hell wouldn't knowingly pass off a counterfeit on the basis that the supermarket would accept it.
I think it depends... if everyone else was treating the counterfeits same as genuine coins, so you're continually getting a mix in change, and no-one is rejecting them when you pass them on, then I think most people would just do the same. If you are not going to get in trouble by spending one (assuming you even noticed in the first place - probably not), and can be pretty much 100% assured it'll be accepted, then it'd be a bit perverse to squint at every coin you handle.
Fiat currency has no inherent value - it's just a system of communal acceptance. If everyone accepts the fake coins then they ARE money. As you note, the system only breaks down if some people stop accepting it.
It'd be interesting if someone from the UK could chime in: Were you aware of all the fake pounds circulating (1 in 30!) ? Did you notice if you got one? Did you care?
> I think it depends... if everyone else was treating the counterfeits same as genuine coins, so you're continually getting a mix in change, and no-one is rejecting them when you pass them on, then I think most people would just do the same.
I think you're directly affirming this: it's fine as long as you both accept the same shared understanding of what it is.
£1 coins are a small proportion of the value of cash in circulation and cash is a small proportion of the money supply. Coins are easier to counterfeit than notes so even if other coins have similar rates of counterfeits its a small problem in context.