And to close the point, the US Government doesn't go bankrupt, because they never actually get called out to show their accounts of (fake) money. Their new money is as good as the rest, meaning that their actions dilute all dollars equally, instead of only wiping out accountholders at one institution.
I wasn't really talking about the dollar, I was talking about the effect on the assets being purchased (MBS securities, and indirectly other assets on the financial markets). Notice how much the stock market and house prices have gone up in the last few years.
