A credit boom in countries such as China means that the world is in a worse position than it was in 2008 when a global financial crisis tipped the world into recession, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, told CNBC.
"If I am telling you that we had a credit crisis in 2008 because we had too much credit in the economy, then there is that much more credit as a percent of the economy now," Faber said.
He referred to a recent report by former Bank for International Settlements chief economist William White which said that total credit in advanced economies is now 30 percent higher as a share of gross domestic product (GDP) than it was in 2007.
"So we are in a worse position than we were back then," Faber told CNBC Asia's "Squawk Box."
"It will end badly and the question is whether we will have a minor economic crisis and then huge money printing or get into an inflationary spiral first," Faber added.
"Why are so many product prices in Singapore and Hong Kong more expensive than in the U.S.? It's because when you have asset inflation and high property prices, shops have to pay higher rents, so they charge more for their products. So asset inflation can flow into consumer inflation," he said. Read more >>