From the booklet "Two Faces of Debt":

"The flow of savings and the way these funds return to the income stream through creation of debt are shown in the following diagram: Savings and Debt in the Income Stream. If any channel is cut off, future income is reduced.

. . . a money creation function

Debt does more than simply transfer idle funds to where they can be put to use -- merely reshuffling existing funds in the form of credit. It also provides a means of creating entirely new funds -- funds needed to finance the greater volume of new projects and spending that contribute to economic growth."

The booklet, "Two Faces of Debt", is a Federal Reserve Bank booklet.

Google it.
See:
http://www.scribd.com/doc/4980026/TwoFacesOfDebt
http://www.ccc.unc.edu/documents/FreemanACSP2008Web.ppt