Its actually very similar to the classic Epecurean argument...which states that if we acknowledge that evil exists in the world, then God cannot be both omnipotent (all-powerful) and omni-benevolent (all good) at the same time. Evil must exist either because (A) God lets it exist or because (B) God can't stop it from happening.
If (A) and God lets evil exist, then he is obviously NOT omni-benevolent. If (B) and God can't stop evil from happening, then he must not be omnipotent.
The favorite theodicy for explaining this is that evil comes out of free will.
But as far as God not being able to "create" something, whatever he "creates" must ultimately be from himself...so is the "creation" really something other than God? And if he were to create something that is considered greater than himself, but that creation is still in essence God himself, then he would still be the most powerful being.
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