We haven't seen the last of the crisis despite all talk about green shoots, and the surge in markets was caused by nothing more than the excess liquidity coming from central banks, Marc Faber, author of the Gloom, Boom and Doom Report, told CNBC Friday.
"If you pump money into the system and you create large fiscal deficits, you create volatility," Faber said.
"We've seen an intermediate low in March, we'll rally for a year or so or maybe 18 months… the ultimate crisis will happen much later, and the ultimate crisis would clean the system," he added.
Asked when this would be, he said he could not forecast a precise timing: "it may be 5 years time, 10 years time, but that's not the last crisis."
There are two opposing views, those who believe deflation is the big danger, with asset prices and demand collapsing, and those who think the biggest risk is inflation and a weak dollar, Faber said.