The next major financial crisis won’t start in the banks—it will start in the Life Insurance sector. That is the urgent warning from legendary financial analyst James Grant, founder of Grant’s Interest Rate Observer.
In this interview with Jeremy Szafron, Anchor at Kitco News, Grant details how the “Search for Yield” has pushed insurance giants into dangerous Private Credit and Private Equity allocations—assets he describes as “inherently junk” and completely lacking price discovery. He warns that policyholders and retirees could be the “unknowing participants” in the next great deleveraging.
Grant also dissects the sudden spike in Repo rates, accusing the Federal Reserve of becoming a “puppet master” that has lost control of the bond market. He breaks down the AI bubble (calling data centers the “Pyramids of Egypt”), explains why the economy is hanging by “dental floss,” and gives his latest forecast for Gold at $4,200 and Silver’s “Trump-like” volatility.
Recorded on December 9, 2025
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
Credit to : Kitco NEWS