This is the same idea propogated by Paul Grignon in his Money as Debt series, as well as Bill Still in his movies. See the post here for reviews of those.
Yeah if you want to help him understand something you kind of have to have an idea of how he thinks things work. Try to find out what the real problem he sees with the Fed is and why a simple change of ownership would change everything that’s wrong with it.
As for Inside Job, check out the thread on it, especially here, here, and here.