John, just think how many years of life and how much reading before one understands the intricacy of all this.  Think how much research is involved in this understanding.  You have a better grasp than 99.*% of the financial planners, 99.*% of bank employees, accountants, polititians........  and I would add most post graduate economics degree holders.

One thing I would add to your othewise splendid assessment is that in this latest round of unannounced QE3 (last August through January), The banks themselves bought the bonds and the Fed merely provided the free lent money and cheap derivative put options to guarantee profit to themselves.  No interest payments will be flowing back to the treasury under this arrangement.  In fact if the bond yields rise again, any loss of capital the crony banks might otherwise face will be made whole via those put options written by the Fed, thereby transfering all interest payment monies made by the taxpayers to the Fed (through bonds directly purchased by the Fed during QE) that would normally flow back to the Treaury, will flow instead to the Crony banks.

I think you have described very nicely how the surpressed interest rates will make savings strech like a rubber band until it snaps in a hyperinflation event.

Nicely done.