[chii]

> The only question is who is eating the real losses.

nobody has to lose.

A buyer of a treasury is receiving interest payments, and will receive the entire principle on maturity. At the time of buying, the buyer must have judged that the value is worth buying. In the future, if the value drops, then that's loss, but it's not unexpected. Just like if the value grow.

Debt is something that is used to produce _more_. Now, if the debt was not used properly and with care then, that's a different story...