Well this certainly has the familiar sound of freeman-on-the-land-nonsense-economic-model.
Sir, you are constantly dodging the important questions. Simply calling something a weak argument is not, in fact, and argument against it. You are going to need to explain how your model functions under the hypothetical scenarios presented to you. You are assuming that everyone under this system will operate with morality and respect for the system, and if they don't, there will be an arbiter to settle it. You are then assuming that the other party will respect this arbiter. You are also contending that if they do not, and initiate violence against you or the arbiter, that you are allowed to defend yourself through violence.
So that brings us to this: What happens if you are killed in the act of defending yourself against unjust violence?