INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor said the current crisis is just an appetizer for a future one because the weaknesses that created it have not been addressed.
Speaking to CNBC's Worldwide Exchange on Friday, Faber said: "It's a total and complete disaster and the crisis we had is just the appetizer to the big total breakdown of financial markets and of governments in five or 10 years time when the whole system goes bust."
Reiterating a long-held belief, Faber said he didn't expect much from the G20 summit as the real issues of "uncontrolled, unbound credit growth," are not addressed and the people who are supposed to implement new measures are the same people who were unable to foresee this crisis.
"My view is that this G20 meeting is a complete and total waste of time," he said. "Nothing will be achieved except that they will implement regulations that are even worse than the regulations that brought us all these problems."
"If you have interest rates at zero essentially you discourage people to save and encourage them to speculate," he said. "I look at the US dollar. Whenever a currency is weak, it's weak because of some inflationary pressures."
Emerging markets are the place to be in the long term, because their economies are gaining importance in the world, but this will lead to geopolitical tensions, Faber warned.
"I think that people will have to rethink the world and that they should have little money in the US and have 50% of their funds in emerging economies," he said.
In his latest issue of The The Gloom, Boom & Doom Report Faber writes: "The future will be a total disaster, with a collapse of our capitalistic system as we know it today, wars, massive government debt defaults and the impoverishment of large segments of Western society."
Faber has been warning for some time about the consequences of printing money.
In a May interview with CNBC, he said central banks will continue to print money at full speed, but long-term this strategy will lead to a fall in purchasing power and living standards, especially in developed countries.
The years 2006 and 2007 were "the peak of prosperity" and the world economy is not likely to return soon to that level, he added.
Unless the system is cleaned out of losses, "the way communism collapsed, capitalism will collapse," according to Faber. "The best way to deal with any economic problem is to let the market work it through."
"With a chairman like Mr. Bernanke, I would assume that cash will be worth zero," Faber said earlier this week."
"I repeat what I have said in the past," Faber says. “No decent citizen should trust the Federal Reserve for one second. It’s very important that everyone own some gold because the government will make the dollar (in the long term) useless."