The following explanation of the QE scam is very interesting. I have never seen it explained this way. This is from an article in today's National Post:

"The U.S. (and almost any government associated with the European Central bank) borrows so fast and so much that it cannot find genuine new lenders. In order to take this excess debt off the market, the American government “buys up” new debt with an accounting trick — quantitative easing III. How does it work? It is terrifyingly simple — and irresponsible. For simplicity, we will use made-up numbers for illustration.

One part of the government, the finance department (Treasury), issues bonds.

The buyers pay, for the sake of illustration, $100 for each bond. The bonds pay an interest rate of $1 per annum, or 1% yield.

Why would anyone be satisfied with so low a dividend?

Because there is a quick, shortterm profit in the offing, that raises the annualized rate of total profit to a quite high level.

The buyers (banks, investors and anyone else in the market) are approached soon after they acquire new bonds with a quick profit offer made by the central bank (Federal Reserve).

The central bank offers to buy up bonds at the attractive price of $200 per bond. Since the annual interest paid by Treasury remains at $1 per bond, the annualized interest rate (now being “earned” by the Fed) falls from 1% (one dollar on a hundred) to one-half of 1% ($1 dividend on a $200 bond).

The fed thus “pushed down interest rates” and the original bond buyers have reaped an extremely high all-in profit, especially since they did not hold the bonds for any significant period of time."

In the same article the author goes on to describe the probable result of the Fed's misadventure, where China unloads U.S. debt and buys assets, such as iron mines:

"But China’s unloading of American currency and bonds — some of the impact temporarily flowing through third nations (where, for example, are located the iron mines) — will force the U.S. treasury, and finally the U.S. taxpayers and citizens, to absorb the excess U.S. money that, during the time the Chinese were willing to hold it, remained outside the American economy.

However, as China diversifies, the United States must somehow “pay off ” the flood of incoming dollars.

The payoff can only take the form of give-ups of American equity. That is, nobody will want to lend the Americans enough to pay off these homeward-headed Treasury bonds.

The rest of the world (China as well as the iron-mine nations) will demand and get equity — true ownership, control and management responsibility in American assets.

The result will be that the Americans will work for new owners. They will have to work just as hard, under their new taskmasters, as do folks in those other nations."