We're losing, which means we're winning?

I'll let this piece of insanity speak for itself. (From Daily Kos)

Q: [...]And if I may ask you, Mr. President, as you know, the casualties of Iraq is again high today -- 50 more people dying. Do you think that insurgence is getting harder now to defeat militarily? Thank you.
PRESIDENT BUSH: No, I don't think so. I think they're being defeated. And that's why they continue to fight.