Second, all debt is created from nothing, or fabricated into existence. The cash flow increases and economic expansion also correlate exactly with the increase in debt.

That's not right. It's a much too sweeping claim, even though it's true that the present banking system is seriously problematic. Money and credit are not the same thing, and lending is not inherently inflationary. As for "economic expansion", estimates of nominal output (GDP) correlate somewhat (but by no means exactly) with the money supply, but real output doesn't, at least in the long run.