And internet-friend has been predicting all sorts of bad things for the past 5 years. His basic premise (which is all that I understand) is that the Fed. and other Central Banks, when they get in trouble, just start printing money.
The US Fed, as well as others around the world, have been injecting money into their systems willy-nilly, over the past week or so. In addition, Bernanke is under pressure to decrease interest rates, as a means to bail out those who are exposed to failing sub-prime mortgages. We're getting squeezed from both ends, and the balloon is about to burst.
Hang on, fellas. We're in for a bumpy ride.