All of the extra cash created by the Fed is just sitting in bank accounts. What is the difference between an investment in US treasuries, and a deposit in the Fed, which invests in treasuries? Not much, except the latter pays less interest. However, the risk of a drop in the value of the bonds has passed from the investor to the Fed.
See also: http://www.washingtonsblog.com/2013/06/81-5-of-money-created-through-quantitative-easing-is-sitting-there-gathering-dust-instead-of-helping-the-economy.html
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