Nick, you are wrong. period.
As you don't trust me,
http://www.grc.nasa.gov/WWW/K-12/airplane/newton2.html
"The important fact is that a force will cause a change in velocity; and likewise, a change in velocity will generate a force."
Force and momentum change are mutually dependant.
In a jet engine, the Newtonian representation is that the increase in velocity of the gas (and hence momentum) when directed in a certain direction
generates the force.
Now back to the inertia machine the change in angular momentum is directed to produce a linear force. It doesn't work in an enclosed Newtonian frame of reference as at the other end of the driveshaft his third law is creating the opposite reaction.