It is wrong to accept a subsidy from the government

Inflation (currency counterfeiting) is not theft. It is not the fault of the counterfeiter that the government creates artificial demand for fiat currencies. If the government did not tax people then there would be no demand for fiat and value could not be extracted by currency counterfeiting. (So the harm caused by counterfeiting is a result of taxation.) However... if there is taxation than allowing some people (banks) to counterfeit does create a problem and invalidate the social contract. Taxation is not valid if banks are allowed to print money. If there is taxation (a fiat currency) then frb must be verboten (illegal) otherwise the government is invalid. The government is only valid if frb is made illegal. If we have taxation (and it is to remain fair) then we must not have frb. Frb makes tax unfair. Only if the government makes frb illegal is it valid. Government is invalid if it fails to prohibit frb.