If the pricing is fair and at arms' length. What's happening in reality is as if they are mowing each others' lawns at wink wink nudge nudge $1000. Not a good proxy for actual value created.
In the real world, you have to pay taxes. So people are incentivized to claim less value for the lawns mowed, or even just do it themselves, instead of benefiting from the division of labour.
Leverage doesn't work that way. (If it were so easy, it would load up my investment portfolio with a lot more leverage than I currently do. And I don't live in the US where regulation T would keep me to a puny 2x leverage.)
