. However, when I get a bank loan to buy a house, we know the bank creates the money at that point and credits my account with it. But when I pay the owner of the house from whom I buying, he then gets the dollars. When he has them, his dollars are not "based on debt." Nobody has a claim to his dollars except him.
to create those dollars to allow you to buy the home, the debt in the system has to be increased by the amt of the mortgage. those extra debt based dollars have now devalued the dollars the seller of the house received so yes, they are debt based. in addition there is interest to be paid on those new debt based dollars by you, the new mortgage holder.