MONEY AS DEBT is a misleading movie that contains mayor errors while speaking the monetary system. Money is not debt, and money is never created only out of debt.
I do get tired of reading, "it does not really work like that" comments.It's supposed to be an introductory movie.
Moreover, in your follow up text you mention that the bank treats the security you exchanged for the loan also as money! This is the whole way the derivatives bubble was expanded. In other words banks can create far ***more*** money than indicated in the films.
Thus numerous Debt Oligations are fromed into collateralized debt obligations (CDO). You can then further pyramid, ontop of this to make a CDO "Squared". Now the total liabilites in the system are many many times the value of *any underlying asset*....but the biggest joke is that the banks and possibly your pension fund view these pyramid debt bubbles as more "assets"...lol!
A great document to read, which comes from the source is "Modern Money Mechanics"....published by the *Chicago Federal reserve*. Also for a more detailed breakdown of how the banks operate in London/UK go to positivemoney.org.uk
The videos posted are a great introduction to our debt based monetary system.