Findeton, your logic is astounding,

First you argue correctly, that a security that is exchanged for debt money is itself treated as money by the banks, then you say its not debt?

How is a Collaterilzed DEBT olbigation not debt? of for that matter a CDO^2?!

Also have you even read "Modern Money Mechanics" published by the US Fed? I suggest you do.

http://en.wikipedia.org/wiki/Federal_Reserve_Bank_of_Chicago

The films contain some problems, but in a nutshell the money expansion is *far worse* than outlined in the films. The films are worth watching. The is also an updated version of Money Masters, called "The Secret of Oz", in which the producer Bill Still acknowledges and corrects some of the errors made in the first film.