What the Hell is Going on at the Fed?

The Federal Reserve, an unaccountable, unelected, uncontrollable group of banks that controls monetary policy in the United States, plans on pumping between $500 billion to $1 trillion dollars into the economy for lending by monetizing the debt, i.e., buy buying up U.S. Treasury Bonds (I recommend reading the full link for a listing of potential downfalls). This is likely to lower interest rates (though how they can go much lower is beyond me) and cause inflation by devaluing the dollar. They tried this before, the idea being that by pushing money into the hands of the banks and lowering interest rates they will encourage lending and borrowing. Why didn't it work the first time? Because banks just loaned the money back to the United States Government because the return rate on the bonds was higher than the interest rates they could charge borrowers. This is likely to happen again and the people at the Fed are smart enough to know this. Which begs the question, what the hell are they doing?