The government cannot see how banking works

It's not insane to claim that (some) private people (not only the government) can print money. (It's not insane because this is the reality.) It would perhaps be reasonable to assume that only the government can print money since it is valuable and we are given to believe that this is the case... certainly we are not informed of how the banking system works. We can be forgiven for thinking that only the government prints money. Since this is a reasonable assumption the government has a duty to inform its citizens that the reality is different and those that see that money is printed by banks are correct. The government should inform people that it too is of the opinion that banks print money... and does not object. Since it is illogical for the government to tolerate (private) banks printing money we can deduce that the government (like many other people) is blind to how the system works. It is only a small group of monetary reformers who can see how the system works.