So more money is made to cover the interest, but that money too, generates interest. This is why we get inflation.
Interest isn't the reason (or perhaps 'sole reason' is more accurate) for inflation - if the company can't make a profit within the current market price after all it's outgoings (including interest), then it eitherwise : doesn't take the loan, folds, changes products, or increases prices (which last carries the possibility of decreased sales).
The main inflationary factor is the market - or more importantly, scarcity in the market. Any time there is a glut - prices go down (despite any interest that may be owed by individual companies - so inflation is not tied directly to interest), any time there is a scarcity, prices go up (inflation). Any time there are too many competitor companies, prices go down...any time there are too many competitor consumers, prices go up.
Of course as prices go up, people demand higher wages to pay for the increased cost of living, which in turn makes it necessary to increase the price of the product....which in turn can make it necessary to increase the wages...etc.
Money is created by means of loans.
It can be, but it's not the only way. You work and create a service or product, and in exchange you get paid.
Some businesses take out loans, while others start small and grow to decent sizes on the pure profits they made.
For every unit of currency that exists, there exists an equal amount of debt.
Only in accounting.
If I pick up a piece of wood in a forest, and transform it into a wonderfully carved piece of art, and then trade my work of art with an artist for a beautiful painting - where is my debt?
When it all comes down to it, wealth is ones assets, and money, is representative of assets - hence a person with a lot of money, is wealthy.
When you pay for something, you are still bartering, without the haggling (though many still do a summarised form of haggling for more expensive products)