With all due respect, when the government is spending $1.60 for every dollar it takes in, and thus has to borrow money to bail out a bunch of crooks that made bad bets, under circumstances that all but assure we will never get our money back, talk of not losing a dime is ignorant.
Who pays the interest on the money we borrowed to cover the bad bets of European banks? We do. And then each and every dollar we own, a “federal reserve note,” is now the note of a bank that has trashed its own balance sheet by taking on AIG’s toxic debt and swapping it for Treasuries.
Sweeping this problem under the rug of the Fed’s balance sheet does not mean “none of it has lost a dime”. Billions have been lost, and the American people are just too ignorant and propagandized to see it. Even Geithner is out in public talking about losses on AIG, and that is just the direct losses, the tip of the iceberg.