If a bank loans you money and you default, there is a loss.
Sure, true if the bank remains solvent then it is their loss...but if there is a bank run and the bank goes down then it become s depositor loss after FDIC limits (unless you are a depositor at Silicon Valley Bank then the Feds step in to cover the losses of over $250K with “funny money”). So maybe it a definition of “loss” problem for Griffin...he is thinking “further upstream” at The Fed (which is currently running in the red).
https://crsreports.congress.gov/product/pdf/IN/IN12081
https://www.smithanglin.com/blog/how-does-the-federal-reserve-create-money/
I guess I need a good flow chart of U.S. currency creation & destruction (and debt monetization). “Monetary Policy for Dummies”?? ;-)