How to Save the Euro

Published on
September 16th, 2019
44 minutes

How to Save the Euro

The Interview ·
Featuring Thomas Mayer

Published on: September 16th, 2019 • Duration: 44 minutes

Thomas Mayer, founder and managing director of the Flossbach von Storch Research Institute, speaks to Ed Harrison about the impact that the creation of the European Union has had on the precarious economic conditions in Europe. Mayer outlines the unsustainable dynamic of the cross-border bank deposits between the central banks of EU member states like Germany and Italy. He also makes the argument that digitalizing the euro might be the solution to the problems facing Europe's monetary union. Filmed on August 30, 2019 in Cologne, Germany. Learn more about Macro Insiders here:



  • CH
    Charles H.
    27 December 2019 @ 07:23
    Superb interview, thanks.
  • AK
    Ado K.
    19 October 2019 @ 21:43
    Thomas is suggesting to essentially end fractional reserve lending, and have the ECB be the only issuer of money. There is this thing called Bitcoin, I think Thomas should read up on it, this since it really to a almost absurd level solves the problems that he so elegantly describes. P.S. Just amazing interview, will re-watch it quite a few times!
  • MM
    Miikka M.
    25 September 2019 @ 13:15
    Thank you Ed and RV for this piece! But... what's up with the shoes?
  • dm
    david m.
    24 September 2019 @ 16:30
    Is no one else concerned about the digitization of currency and the amount of power this will give to banks?
  • MG
    Matteo G.
    20 September 2019 @ 05:52
    I am italian and I share many of his comments about the weakness of my country, but when talking about the dire state of european banks maybe he could have mentioned the biggest ticking bomb in the world, ie Deutsche Bank or the immense advantage that a weak euro has been for german exports, which by the way explains why at the end of the day germany will do all that it can to support the euro.
    • IP
      IDA P.
      24 September 2019 @ 08:49
      Yes but Germany knows they need fiscal expansion to save the Euro, and yet Merkel keeps saying "zero deficits" to stay popular with her voters, so isn't there a risk that Germany act too late?
  • RB
    Rahul B.
    22 September 2019 @ 07:20
    I like the way Ed says “Flossbach von Storch”
  • GB
    Gordon B.
    19 September 2019 @ 16:15
    Prescient regarding the recent $ liquidity episode and soft QE4 implemented by the FED.
  • wo
    wellies o.
    19 September 2019 @ 10:43
    when a convicted criminal gets promoted to the head of ECB it sort of tells you all you need to know about the EU and any pretend monetary union therein, imo
  • aa
    austin a.
    18 September 2019 @ 19:28
    Just skip straight to bitcoin. It will save a lot of pain.
  • NS
    Nathan S.
    17 September 2019 @ 08:24
    My god how fucking stupid are these people!
    • TM
      Torsten M.
      17 September 2019 @ 09:11
      Who are this stupid people in your opinion?
    • DS
      David S.
      18 September 2019 @ 10:46
      Nathan S - If you disagree with the reasoning, elucidate your points of difference or simply give your point of view. DLS
  • ME
    Manbyt E.
    18 September 2019 @ 09:25
    The banker led blockchain narrative will be a Trojan horse for Bitcoin. Permissioned Blockchain = Intranet Permissionless Blockchain= Internet Prove me wrong
  • DP
    David P.
    18 September 2019 @ 08:04
    Mr Mayer presentation is a very innovative approach by what remains, in my view, the opinion of a German hard money man, highlighted by the end of the interview and the desire of competitive currency, with the hardest surviving. I wonder about the soundness of this as, traditionally in human history, people have tended to over borrow and regular debt jubilees was typical (and needed?) safety valve to the environment of generalized debt enslavement created by the lack of patience (and when you can hardly feed your family, to which extent is it a choice?) of the poorer citizens. Very interesting nevertheless and thanks to him for providing his view.
  • DC
    Dave C.
    18 September 2019 @ 00:03
    Great interview and some crumbs provided as to a game plan being formulated by the monetary elites. The proposition of placing money creation responsibility solely with the central banks has some merit. However, to suggest that the only way of taking away the power to create money from the commercial banks via debt creation is to fully digitise currency is both deceptive and patently false. The technocratic agenda is clearly showing itself IMHO.
  • RS
    Rafal S.
    17 September 2019 @ 22:23
    Great job! Very enlightening.
  • DS
    David S.
    17 September 2019 @ 20:23
    Thank you for an excellent interview When everything breaks down, why not just return to individual currencies that have worked for hundreds of years. The EEC then might have a chance to develop. The whole Euro model has held Europe back. It has greatly helped exporting countries. Those gains are now gone. A wake for the Euro will provide each country with its own sovereignty and currency control for better or worse. DLS
  • vm
    vaz m.
    17 September 2019 @ 18:13
    Thank you Tomas,this was an excellent interview. I would love to hear you again.
  • PV
    P V.
    17 September 2019 @ 07:09
    Truly exceptional content about the Eurozone and its future. As an Itlian born, overseas-based economist, sadly I see the odds favouring Italy choosing the option of continuing clientele- driven fiscal expansion over the permanence within the eurozone. Please more high quality content like this about Europe.
  • PW
    Phil W.
    16 September 2019 @ 23:09
    Great interview Ed! by the by, Nice dudes Ed
  • MW
    Moritz W.
    16 September 2019 @ 20:49
    Please interview Markus Krall (goetzpartners) and Daniel Stelter (exBCG) !
  • SS
    Sam S.
    16 September 2019 @ 20:38
    Mr. Mayer, are you saying the Euro is a cash system only because the debt of each member of the EU is still in their own currency and essentially no common Euro Debt? When each country joined, should their debt have been converted to the Euro? Very informative interview! Thank you.
  • DL
    David L.
    16 September 2019 @ 12:47
    Interesting that Italy tried monetary stimulus until it no longer worked and then fiscal stimulus until it no longer worked and now their growth is stalled. Isn't that the same path the entire Euro region is currently on? Good interview, very interesting.
    • DW
      Daniel W.
      16 September 2019 @ 18:54
      Same for US, isn't it??
  • DS
    David S.
    16 September 2019 @ 17:53
    Mr. Mayer system will just make more money backed by nothing. Nothing is still nothing even in the digital world. Sorry, but eliminating the Euro is the only solution. The longer the more pain. DLS
  • JK
    Justin K.
    16 September 2019 @ 17:27
    Great interview! More interviews on Europe in the future please!
  • DS
    David S.
    16 September 2019 @ 17:18
    The Euro is an irrational monetary system set up by politicians without a sovereign. Why would anyone think it would or ever could work economically? The populists will promise simple solutions; there is no hope. Timing is the only real question. That is where the money will be made. DLS
  • DJ
    D J.
    16 September 2019 @ 15:26
    Such a wonderful presentation
  • RM
    Richard M.
    16 September 2019 @ 14:09
    Ed, fantastic interview yet again!!! Really enjoyed this, very enlightening and a great history lesson in the EMU and Euro creation. Really hope you do a follow up with Mr. Mayer on the topics you didn't get to. Mr. Mayer was a very interesting and enjoyable personality. Many thanks!
  • wj
    wiktor j.
    16 September 2019 @ 13:28
    Europe is not only a Financial problem. Brussels is the political problem where non-elected "ex" politicians who can’t find jobs elsewhere when hired get to make the law for the rest of us. So until you do away with Brussels the financial system cannot be fixed. Then comes the problems with emigration. This cannot be fixed until we get rid of Brussels. I have 1 trade on (not on margin). I short the EURO. People are fed up and UK wont be the last country to leave the United Soviet union of Europe.
  • BA
    Bruce A.
    16 September 2019 @ 12:59
    Keep it goin Ed. You are killin it.
  • TS
    Taranvir S.
    16 September 2019 @ 12:12
    So the future is blockchain + electronic/crypto/digital currencies that allow us to transact globally?
  • dd
    david d.
    16 September 2019 @ 11:37
    GREAT !