As of now, all fiat currencies are debt-based. So I guess one could say money is debt. I agree banks create the debt through loans but they are only functioning in a system designed for that. I don't see any problem with money being created out of nothing, it's the value we ascribe to is that come from production. That value can not be created, just the little units used to measure it. What we need is a debt-free currency. IMO that would eliminate a majority of the financial problem we see today. Enter bitcoin and the free market of money. If we could pay taxes in bitcoin we would be all set.