Iceland: Budget Airline WOW based in Iceland goes bankrupt

Passengers stranded as Icelandic budget airline WOW Air goes bust

Read more at: 

https://www.cbc.ca/news/business/wow-air-shut-down-1.5074662

Tax Systems - money is not determinating factor: The happiest countries in the world also pay a lot in taxes

The US Tax System needs an overhaul

The happiest countries in the world in 2017 are prosperous Western-style liberal democracies.

Their populations are, in many cases, largely homogeneous. And they also have something else in common: They each pay a lot in taxes.

According to the United Nations' latest World Happiness Report, as covered by CBS News, the top 10 happiest countries are:
1. Norway
2. Denmark
3. Iceland
4. Switzerland
5. Finland
6. Netherlands
7. Canada
8. New Zealand
9. Australia
10. Sweden

Report co-author Jeffrey Sachs, who is also the director of the Sustainable Development Solutions Network, tells CBS that "happiness is a result of creating strong social foundations," and that if other nations prioritized "social trust" and "healthy lives," they could also find that their citizens become more content.

The top three happiest countries, Norway, Denmark and Iceland, are all among the highest taxed countries in the Organization for Economic Cooperation and Development (OECD), in terms of total tax revenue as a percentage of GDP. The widely enjoyed social benefits residents get in exchange for their taxes, such as universal health care, access to education and subsidized parental leave, could have something to do with the "strong social foundations" touted by Sachs.

Note EU-Digest: These countries are happy, mainly for all the services they are getting in exchange for paying high taxes. Specially in the area of healthcare and low pharmaceutical costs, obviously also by enjoying great infrastructural advantages and obviously modern public transportation systems. In America right-wing politicians (mainly Republicans) have figured out that by telling the taxpayers they pay the lowest taxes in the world, it will make  corrupt practices by them easier. Unfortunately over time this made the US taxpayer the big loser.

Read more: The happiest countries in the world also pay a lot in taxes

US Aluminum Industry:President Trump Signs Order to Launch Aluminum Imports Investigation

The alliance for American Manufacturing reports : Another 'Section 232' investigation for the Trump administration. Will it lead to action? ? First steel, now aluminum.

President Donald Trump officially signed an executive order on Thursday (April 27)  afternoon to initiate a Section 232(b) investigation into aluminum imports. Overseen by the Commerce Department, the investigation will determine whether foreign imports of aluminum threaten national security - and if so, Trump will have the power to act to restrict imports, including through tariffs.

The Commerce Department has 270 days to conduct the investigation. Once it gives its recommendation to Trump, he will have 90 days to respond.

There's little doubt that American aluminum makers are threatened because of China's aluminum overcapacity. Chinese state-owned enterprises produce far more aluminum than China can use for its own needs. Instead of curbing production, China dumps its excess aluminum (which, we note, is heavily subsidized) into the U.S. market priced far below market cost.

It's part of a strategy to capture market share and put American aluminum makers out of business. Over the past 15 years, China's aluminum production quintupled, from 11 percent of the world's production in 2002 to 53 percent in 2016; imports took 55 percent of the market in 2016.

Meanwhile, eight American smelters have closed or curbed production since 2015. Only two are fully operational today. There is only one remaining American smelter capable of producing the high-purity aluminum needed by the aerospace industry for F-35, F-18 and C-17 aircraft, Commerce Secretary Wilbur Ross told reporters during a Wednesday briefing.

Alliance for American Manufacturing President Scott Paul said that the investigation could be a step toward recovery for the blue-collar aluminum industry workers impacted by China's unfair trade practices.

'If we're to see real change, this investigation must be followed by appropriate trade enforcement,' he said. 'For years, China has promised to cut its massive industrial overcapacity, all while increasing production… If China is unwilling to keep its promises, there should be clear and enforceable penalties to force actions.'

Trump's executive order earned bipartisan support, including from Ohio Sen. Sherrod Brown (D), who noted in a statement that 15,000 American aluminum workers have lost their jobs in the last decade. But Brown also cautioned that the investigation must lead to action.

'It's good that the Administration is using this tool, but what matters to Ohio workers and the aluminum supply chain is whether it leads to real relief and action against China's market-distorting policies,' Brown said.

Heidi Brock, president and CEO of the Aluminum Association, said in a statement that Trump's executive action 'recognizes the value of U.S. aluminum industry.' United Steelworkers President Leo Gerard, whose union represents thousands of aluminum industry workers, said any action stemming from the investigation should focus 'on those countries that are actually breaking the rules.'

He named names. 'China's overcapacity is swamping world markets, driving down prices and making some operations unprofitable,' he said.

While Section 232 investigations are rare, this is now the second time that Trump has opted to initiate one; he announced a Section 232 investigation into steel imports on April 20.

But as our Scott Paul noted last week, China's industrial overcapacity and persistent unfair practices - coupled with the need to maintain a strong industrial supply chain for our national security needs - mean such action is appropriate.

'America's steelmakers are vital to our national security, providing essentials ranging from the armor plate on our tanks and specialty metals in our high-tech aircraft, to the hulls of our battleships and everything in between,' Paul said. 'China's massively subsidized and grossly over-scaled steel industry is an existential threat to our own domestic makers.'

Note EU-Digest: Once again this Trump executive order is probably not only worth the paper it is written on but also  in conflict with established rules of the World Trade organization. But also contradictory as to the actual situation of the US Aluminum Industry .

How would this order be applied to US Aluminum giant Alcoa, which has operations in Australia, Brasil, Canada, Guinea, Iceland, Norway, Saudi Arabia Spain and Suriname (Alcoa is presently in a negotiation phase with the government, as Alcoa winds down its operations there)? Nevertheless,would these subsidiary, or partner companies of Alcoa, also be seen as "foreign competition", which in a geographical sense they are.

Once again. it looks like the Trump administration only used this "Executive Order" signing  ceremony today, April 27, surrounded by CEO's of the US aluminum industry, "to investigate Aluminum Imports", as a  PR photo opportunity.

EU-Digest

Financial Industry: how Iceland deals with "too big to fail" banks :" we shouldn’t lose the banks to the hands of fools”

If Bjarni Benediktsson, Finance Minister has his way, Icelanders will receive kr 30,000 after their government has ownership of the bank. Íslandsbanki will be the second largest bank, of three, under Statero prietorship.

Benediktsson stated, “I am saying that the government take [sic] some decided portion, 5%, and simply hand it over to the people of this country.”

Since the government is under the control of Icelanders, they own the banks.  Bjarni believes that their economy will be fueled by foreign capital that will be brought into the country, which still remains the only European nation that has fully recovered from the 2008 crisis. Iceland was even able to pay its outstanding debt to the IMF before its due date.

Budget Committee vice chairperson, Guðlaugur Þór Þórðarson, explained that this move will ease the lifting of capital controls, even though he’s not entirely sure that State ownership is the ideal solution.

Steingrímur J. Sigfússon, former Finance Minister, agrees with Þórðarson stating in a radio show, “we shouldn’t lose the banks to the hands of fools” and that a shift in focus to separate “commercial banking from investment banking” would benefit Iceland.

Read more: First They Jailed the Bankers, Now Every Icelander to Be Paid in Bank SaleREALfarmacy.com | Healthy News and Information