People can print money because of the government

The problem for the government of deposit insurance is that it enables a combination of the banks and customers to 'print' money. Fiat money is imposed on the population... it is worthless without the threat of taxation but if banks are guaranteed their credit will have the same value as the base money. If banks are given deposit insurance then their credit-creation rights must be restricted otherwise there will be inflation. The government is responsible for the ability of the banks (and their customers) to inflate the currency. The people (banks and their customers) are able to inflate the currency only because of government deposit insurance and the lack of any prohibition on bank lending. If not for government deposit insurance then things would be fine... it is the fault of the government that the people are able to inflate the currency.