To affirm your points:
1) I have read many stories the last few years discussing how the Fed has been buying most if not all the debt at certain times when bonds have been released. This is basically a bookkeeping trick to keep “things running smoothly” for the ponzi scheme that is running with the fiat currency in place, backed by nothing but good vibrations.
2) The banks create money out if thin air by fractional reserve lending. The vast majority of “money” is electronic and not in physical form.
3) Barry’s been working hard to make sure our productivity keeps going down, using multiple vectors.
I read from a credible source several years ago that physical cash transactions are less than six cents of every dollar. We're probably lucky if it is a nickle now.
AND, when the treasury issues bonds money is created. Also Fractional Reserve Banking is not bad in itself much like a single cigarette is not bad. The problem comes when you make lending so cheap and easy that EVERYONE borrows and uses credit cards constantly and the majority of the citizens are always in debt. You bloat the money supply AND at the same time you get asset bloat in the stock market because a 3% dividend on AEP suddenly looks like the big bucks when compared to a money market or CD that gets 1% or so if you are lucky.