Money as Debt

I watched this interesting video on money. I was surprised with what i saw.
I am confused about the whole thing. But this is a working model and simply it works except for the odd economic depression of 1930s.

Read more about it here
http://www.moneyasdebt.net/
http://en.wikipedia.org/wiki/Fractional-reserve_banking
http://en.wikipedia.org/wiki/Reserve_requirements
http://en.wikipedia.org/wiki/Federal_Reserve
http://en.wikipedia.org/wiki/Fiat_currency