Uber bear investor and Gloom, Boom and Doom Report editor Marc Faber says Dubai World’s debt problems are just the tip of the iceberg, and suggests investors will be better off not buying U.S. government bonds.

“In the context of all the default that will happen in the world, it (Dubai) is not a big thing,” Faber told Bloomberg. “But it’s a reminder that governments can default.”

The 3.3 percent investors currently earn on U.S. bonds will likely be lost to dollar depreciation over time, Faber notes. Moreover, if deflation occurs, “much more money will be printed” and stimulus packages will cause government debt to rise.

“Eventually, I suppose a lot of governments will be bust, including the U.S.,” Faber says. “Nothing has been resolved, it’s just being postponed…The ultimate crisis will not just bankrupt the banking system and financial as happened in 2008, it will bankrupt governments.”

“I think the upside potential for U.S. bonds is extremely limited.”

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