What Is the Economic Value of Greenland and Why Does Trump Want It So Badly?

(The Economic Collapse Blog)—All of a sudden, everyone is talking about Greenland.  Normally, Greenland is a place that is largely ignored by the rest of the world, but apparently Donald Trump is very serious about acquiring it.  But what would that look like?  If Greenland is made the 51st state, it would have as many U.S. Senators as the state of California.  That could have very serious implications for the balance of power in Congress.  And how would Greenland vote in U.S. presidential elections?  Has anyone even considered that?  Of course Greenland could become just another U.S. territory, but why would the citizens of Greenland want to become the next Puerto Rico?  That certainly doesn’t sound very appealing.  And why is Trump making such a big deal out of this anyway?  Approximately 56,000 people live in Greenland, and 80 percent of it is covered in ice.  So why does Trump want it so badly?

Of course the truth is that it all comes down to natural resources.

In particular, Greenland has lots and lots of oil.

According to Wikipedia, Greenland “has some of the world’s largest remaining oil resources”…

Some geologists believe Greenland has some of the world’s largest remaining oil resources:^[30] in 2001, the U.S. Geological Survey found that the waters off north-eastern Greenland (north and south of the Arctic Circle) could contain up to 110 billion barrels (17×10⁹ m³) of oil,^[31] and in 2010 the British petrochemical company Cairns Oil reported “the first firm indications” of commercially viable oil deposits.^[32]

The U.S. consumes an average of approximately 20 million barrels of petroleum per day.

So 110 billion barrels is a serious amount of oil.

And it also turns out that the Chinese are very interested in the rare-earth elements that are buried under the dirt in Greenland.  In fact, one particular area of Greenland is “home to one of the world’s largest undeveloped deposits of rare-earth elements outside of China”…

Kvanefjeld is home to one of the world’s largest undeveloped deposits of rare-earth elements outside of China. Seventeen elements, including scandium and yttrium, are buried deep underground there. They are used in everything from cell phones and wind turbines to electric cars. Mining advocates say tapping into them would be a major financial boon for Greenland.

Greenland Minerals Limited (GML), the Australian company developing the mine, said that the country would receive $240 million (€201 million) in taxes and royalties annually over the mine’s planned 37-year lifespan. GML’s biggest stakeholder is Shenghe Resources Holding, a Chinese rare-earths processing company.

It has been estimated that there are more than 38 million tons of rare earth deposits in Greenland.

So who will end up benefitting from those deposits?

Will it be the U.S. or will it be China?

On top of everything else, an extremely important U.S. military base is already located in Greenland…

Thule Air Base, already a vital U.S. military installation, provides early warning radar and monitors potential missile threats. Housing approximately 600 personnel, it plays a critical role in the U.S. missile defense network, covering threats across the northern hemisphere. Its strategic location enables unparalleled monitoring capabilities, reinforcing America’s defensive posture in the Arctic. Expanding this presence would fortify America’s Arctic strategy against rivals such as Russia and China, ensuring unparalleled leverage in the rapidly evolving Arctic theater.

If we lost that base, it would be an enormous strategic blow to the United States.

After considering all of the variables, Trump has decided that it is time for us to control Greenland.

In fact, he is threatening Denmark with very painful tariffs if they try to stand in the way…

US President-elect Donald Trump has threatened “very-high” tariffs on Denmark if it resists his effort to take control of Greenland, an autonomous Danish territory.

And on Tuesday, Trump actually refused to rule out the use of military force to take control of Greenland…

President-elect Donald Trump on Tuesday wouldn’t rule out exercising military or economic coercion to further his goal of bringing both Greenland and the Panama Canal under U.S. control, as his son, Donald Trump Jr., is in Greenland amid Trump’s push to acquire the autonomous territory of Denmark.

“I can’t assure you, you’re talking about Panama and Greenland,” Trump told reporters during a press conference at his Mar-a-Lago estate in Florida. “No, I can’t assure you on either of those two. But I can say this — we need them for economic security.”

Obviously, a military invasion of Greenland is something that should be completely off the table.

The rest of the world would be absolutely horrified if we invaded Greenland and made it part of the United States by force.

If Greenland is going to come under U.S. control, it must be done by diplomatic means.  Perhaps Donald Trump Jr.’s visit to the island is the beginning of that process…

Donald Trump Jr., son of President-elect Donald Trump, arrived in Greenland Tuesday with conservative activist Charlie Kirk amid a push to purchase the Danish territory.

“Don Jr. and my Reps landing in Greenland,” the president-elect posted on Truth Social.

“The reception has been great. They, and the Free World, need safety, security, strength, and PEACE!

“This is a deal that must happen. MAGA. MAKE GREENLAND GREAT AGAIN!”

In the end, it will be up to the people of Greenland to decide their future.

It is a land that has been dominated by Denmark for a very long time, but now it could soon be holding a referendum on independence…

Greenland, the world’s largest island, was a Danish colony until 1953, when it became an integral part of the Kingdom of Denmark. In 1979, it achieved home rule, and in 2009, self-governance, granting it control over domestic affairs while Copenhagen retained authority over defence and foreign policy. Crucially, the 2009 agreement provides Greenland with the right to declare independence through a referendum.

If Greenland votes for independence, it seems unlikely that they would be interested in giving that up just to become another U.S. territory.

Greenland Prime Minister Múte Bourup Egede insists that his country “will never be for sale”…

“Greenland is ours,” Egede also said. “We are not for sale and will never be for sale. We must not lose our long struggle for freedom.”

Egede was indeed responding to an assertion from Trump that the United States must acquire Greenland “for purposes of National Security and Freedom throughout the World.”

So I think that this is a deal that would be exceedingly difficult for Trump to make.

Of course this isn’t the first time that the United States has been interested in acquiring Greenland…

This is not the first time the US has shown interest in acquiring the island. Under President Andrew Johnson in 1867, the US State Department noted Greenland’s resources and location as ideal for acquisition but made no formal efforts.

Nearly a century later, President Harry S Truman offered Denmark $100 million for Greenland in 1946 after recognising its strategic value post-World War II. Truman also considered trading parts of Alaska for Greenland, though the deal never materialised.

Without a doubt, I think that Greenland would like to have very strong ties to the United States.

But I wouldn’t count on Greenland becoming part of the U.S. any time soon.

Needless to say, Trump will have so many other issues to focus on once he becomes president that the status of Greenland will probably quickly become an afterthought.

2025 is going to be such an important year for our nation and for the entire world, and the decisions that Trump makes during the months ahead will have enormous implications for all of us.

Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.