The banks cause inflation because of the Government guarantee of deposits

The banks are able to inflate the money supply because of the Government guarantee of bank deposits. The Government allows the banks to cause inflation, because the deposits are guaranteed which makes them part of the money supply since they are backed by the State.

The State guarantee makes bank deposits similar to and equivalent to money.

The banks would have no ability to cause inflation without the assistance of the Government.

The Government allows the banks to destroy savings by providing a guarantee of unsound deposits. Printing money is bad because it removes the legitimate purchasing power held by others, to those that print the currency. It moves the counterfeiter further up the queue in the purchase, or more significantly, the rent and lease of Government assets, property. It gives the ones with the right to increase the money supply an advantage over the rest. Why should banks have this advantage? Why should anyone but the Government?

It is impossible to increase the money supply without a banking license, unless you are the Government.

The banks are given permission to increase the money supply by the Government. It is best (better) to allow banks to fail so that they do not get the advantage of increasing the money supply.