Next Financial Crash May Start in Life Insurance and Junk Debt James Grant Sounds Alarm

The next financial crisis won’t start with the banks—it may start where Americans think their money is safest: life insurance. That’s the blunt warning from legendary market analyst James Grant, founder of Grant’s Interest Rate Observer, in this exclusive interview with Kitco News Anchor Jeremy Szafron.

Grant argues that years of Washington-style easy money and the relentless search for yield have pushed insurance giants deep into private credit and private equity—assets he calls junk without real price discovery. In his view, policyholders and retirees could become the unknowing participants in the next wave of deleveraging if liquidity dries up and valuations suddenly reset.

Grant also sounds the alarm on a sudden spike in repo rates, warning the Fed has tried to play puppet master in markets it no longer fully controls—especially the bond market. He unpacks what he sees as an AI-driven bubble, comparing today’s data center buildout to the Pyramids of Egypt, and argues the broader economy is hanging on thin support as credit stress builds.

Finally, Grant gives his latest outlook for gold near $4,200 and silver’s headline-grabbing volatility, as investors weigh the risks of policy error, debt saturation, and market fragility.

Recorded on December 9, 2025, this is a must-watch briefing on where the next systemic crack may appear—and why it could hit savers first.

Follow Jeremy Szafron on X: @JeremySzafron (https://x.com/JeremySzafron)
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TIMESTAMPS:
00:00 Intro: The Repo Rate Spike
01:28 Interview Start: James Grant on "Suppressed Price Discovery"
03:39 The Fed is "The Puppet Master" (Is Secret QE Back?)
20:22 The AI Bubble: "Pyramids of Egypt"
23:31 Financing "Future Junk": The 30-Year Bond Trap
24:15 The "Terrifying" Mismatch in Tech
25:31 James Grant: The Economy is Suspended on "Dental Floss"
27:14 Private Credit is "Inherently Junk"
30:58 The "False Calm" & Hidden Leverage
33:33 THE WARNING: Life Insurance is the "Epicenter" of the Crisis
38:58 The Japan Carry Trade: A "Damaging" Unwind Coming?
42:24 Gold $4,200 & The "Reciprocal of Faith"
45:21 Conclusion

#JamesGrant #Gold #Recession #Fed #LifeInsurance #PrivateCredit #Economy #KitcoNews #JeremySzafron #Silver #Investing #Crisis
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