Thoughts on QE111

Let's see if I got this right. The Fed gets up one morning each month and creates 40 billion dollars out of thin air and deposits it into it's account. It then takes the 40 billion dollars and buys mortgage backed securities from the banks thereby adding 40 billion dollars of cash a month into the accounts of the banks. The banks can then leverage it up 10 or 15 times and buy US Treasuries. The Fed gets the interest from the mortgage backed securities and gets to keep it. The banks get to keep the interest from the 400 billion dollars of Treasuries they buy every month. In the process this 400 billion dollars of newly created money dilutes the dollar pool and drives down the exchange rate of the dollar. This causes the price of oil, gold, wheat, corn and anything else denominated in dollars up along with anything imported which is just about everything. . This reduces the standard of living for the American worker but increases the profitability of the banks and does absolutely nothing for the economy and unemployment. And no one objects. Except Ron Paul but who listens to him. What am I missing?