The 91-Year Debasement Trade: Why $4,600 Gold is Just the Beginning - James Grant

As the U.S. debt hits 100% of GDP and the 30-year Treasury yield nears the 5% mark, the bond market is finally forcing Washington’s hand. In this deep-dive interview, James Grant, founder of Grant’s Interest Rate Observer, joins Jeremy Szafron to discuss why the Federal Reserve now regards gold as an "existential threat" to its discretionary power.Grant warns that the current era of "Fiscal Dominance" means the Treasury’s interest bill is increasingly limiting what monetary policy can actually achieve. We explore the hidden "time bomb" in the $30 trillion private credit market, where stripped-away covenants and opaque "marks" have created a cycle that Grant believes must end in a "gale of fear". From the AI CapEx bubble to the 91-year debasement of the dollar, this is a masterclass in credit discipline and monetary history. Recorded May 1 2026Follow Jeremy Szafron on X: @JeremySzafron (https://x.com/JeremySzafron)Follow Kitco News on X: @KitcoNewsNOW (https://x.com/KitcoNewsNOW)Chapters:00:00 Inflation Meets Bonds: The 5% Warning00:54 Fiscal Dominance: Is the Treasury Running the Fed?03:29 The Private Credit Time Bomb04:05 Insurance Risk: Private Equity’s New Play07:24 The Erosion of Covenants and Opaque Marks10:18 LMEs: The "Extend and Pretend" Peak12:38 The AI CapEx Bubble: Bubble vs. Use Case17:02 Tech Cycles: Lessons from Railroads & Fiber Optics19:44 Dollar Liquidity and the Fed’s Next Trap24:18 The 91-Year Debasement Trade: Gold $4,50028:55 Silver: Industrial Demand vs. Monetary Value42:39 Why the Fed Hates Gold: The Hard Limit #Gold #FederalReserve #DebtCrisis #JamesGrant #Investing #Macro #Inflation #Silver #Economy #Kitco __________________________________________________________________Like, share, and subscribe to Kitco News—and turn on alerts to stay current with expert interviews, market insights, and breaking news coverage. FOLLOW US:  X: https://x.com/kitconewsnow  Instagram: https://www.instagram.com/kitconews  Facebook: https://www.facebook.com/KitcoNews  LinkedIn: https://www.linkedin.com/company/kitconewsVisit: https://Kitco.com/ for live gold, silver, and crypto prices, the latest mining news, and macroeconomic insights.  Live gold price and chart: https://www.kitco.com/charts/goldLive silver price and chart: https://www.kitco.com/charts/silverLive crypto market data: https://www.kitco.com/price/cryptoLearn more about Kitco News: https://www.kitco.com/news/about/ For more information on advertising, sponsorship and marketing promotions – please visit our online media kit at: https://www.kitco.com/advertising  Disclaimer:  The videos are not intended to provide trading advice, and the views expressed do not necessarily reflect those of Kitco Metals Inc. Kitco News, its anchors, producers, and reporters are not responsible in any way for the performance or actions of any sponsor, advertiser or affiliate of Kitco News. In no event will Kitco and its employees be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content in this video.Disclaimer:  The videos are not intended to provide trading advice, and the views expressed do not necessarily reflect those of Kitco Metals Inc. Kitco News, its anchors, producers, and reporters are not responsible in any way for the performance or actions of any sponsor, advertiser or affiliate of Kitco News. In no event will Kitco and its employees be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content in this video.