This is for the baffled guy who wrote this. Here's a simple example, in case you did not get this. Suppose a financial intermediary that holds long-maturity Treasury bonds, and finances this portfolio with a sequence of repurchase agreements, with the Treasuries used as the collateral in the repos. Suppose also that this intermediary, and the counterparty in the repo transaction, both have reserve accounts with the Fed. Now, one morning, when the intermediary needs to repurchase the Treasuries, it sells the Treasuries to the Fed in exchange for reserves, then transfers the reserves to the repo counterparty. What has changed here? First, some private economic entity now has reserves instead of a collateralized overnight loan (repo), where the collateral was the Treasury bonds. Second, the Treasuries are now at the Fed instead of at a private intermediary. Nothing of substance has changed. The Treasuries used in the original repos are backed by the full faith and credit of the United States of America, as is the reserve account. Nothing of substance has changed. The only subtle difference here is that the repos can in principle be held by anyone, while not everyone can have a reserve account. But this goes the other way, in that the reserves, at the margin, are actually less "liquid" in some sense than the repos are.
If we make this more general by allowing for more complicated types of financial interemediaries, it should not matter. Thus, QE2 is irrelevant.