There are 2 interesting videos to watch that explain the creation of modern modeny and the current debt-based credit crisis.
The first video is Max Keiser's interview with Ellen Brown. Ellen Brown explains how modern money is created. It is created by banks and financial institutions rather than by government. Governments do create money but they are not the major player in that game.
The second video, of the economist Steve Keen, is long but worth watching if you want an in-depth understanding of the current crisis.
From my point of view, what is most significant about Keen's video is his argument that the government ought to have bailed out consumers, rather than the banks. Keen is not sentimental. Rather, his argument is that a bailout of, or debt forgiveness for, consumers is the only effective way forward and out of the current crisis.