Did you hear the one about the Fed Reserve?

On the same day that Congress was killing their sacrificial lamb (AIG's CEO Liddy), Ben Bernake of the Federal Reserve 'bought' $1.15 TRILLION of Treasury Debt. That would be as if I borrowed cash using what I owed the bank for my mortgage as collateral. It is basically printing money. Now I ask you, if we print $1 Trillion dollars without the ets to back them up, what happens to the value of the dollar?