U.S. Greenland 2029: Congressman Collins' Map Rekindles Trump's Dream

The idea of the US purchasing Greenland, an island a quarter the size of the USA, resurfaced after Republican Congressman Mike Collins shared an image of Donald Trump's 2024 Electoral College map, which included Greenland, colored red. The map was captioned "Project 2029," hinting that the island could become part of the US by 2029.

 Project 2029: The Greenland Purchase.

During his first term, Trump notably raised the idea of buying Greenland, describing it as "essentially a large real estate deal." In 2019, he remarked, "Denmark essentially owns it … We’re very good allies with Denmark, we protect Denmark like we protect large portions of the world … Strategically, it’s interesting, and we’d be interested, but we’ll talk to them a little bit." 

  "Essentially a large real estate deal." 

 Danish prime minister, 2019: "Trump doesn't understand reality."

Trump’s proposal to purchase Greenland reportedly included assuming Denmark's $600 million annual subsidy to the island. He also jokingly suggested swapping Greenland for Puerto Rico during discussions, according to The New York Times. However, Denmark, a NATO ally, firmly rejected the idea, with Prime Minister Mette Frederiksen calling it "absurd" and declaring, "Greenland is not for sale. That's where the conversation ends."

 

Deutsche Welle, August 16, 2019.

Throughout history, the US has shown interest in acquiring Greenland, with discussions dating back to 1867, 1910, and 1946. The island’s appeal lies in its substantial untapped resources, including offshore oil and gas reserves, as well as confirmed deposits of zinc, gold, iron ore, uranium, and other metals. Recent discoveries of rare earth elements, crucial for electric vehicles and wind turbines, have only increased its strategic value. 

 

Jared Kushner, February 15, 2024: "Gaza could be a valuable waterfront property".

 

Additionally, Greenland is seen as a critical geopolitical asset, with its position offering control over Arctic sea lanes and access to resources worth potentially trillions of dollars. It is also home to US military infrastructure, including components of the ballistic missile warning system and phased-array radar equipment at Thule Air Base, cementing NATO's control over the North Atlantic. In the future, Greenland could even be used to deploy US intermediate-range ground-based missiles.

 

See also:
Martin Armstrong (November 15, 2024) - US Military Base Opens 100 Miles Off Russian Border.

Denmark Free of Foreign-Currency Debt for the First Time in 183 Years

Eshe Nelson (Mar 20, 2017) - Today marks a milestone for Denmark, centuries in the making. The Danish government will repay a $1.5 billion loan (pdf), freeing it from foreign-currency debt for the first time in at least 183 years. This record probably stretches back even further, since Denmark first raised a loan in a foreign currency back in 1757, when it borrowed in Hamburg and Amsterdam, the central bank said. (The records are spotty, so it is unclear whether the country was ever foreign debt-free before 1834, when data collection became more robust.)

The last time Denmark was this close to ridding itself of foreign debt was the late 1890s, when these obligations were worth less than 1% of GDP. But low European interest rates at the time made financing projects like new railways more attractive with foreign debt, so the borrowing restarted. In recent history, issuing external debt has been a means to ensure sufficient foreign-exchange reserves. After Denmark pegged the krone to the deutsche mark, and later the euro, starting in the late 1970s, market interventions have been used to adjust the krone’s value, which require reserves of foreign currencies to buy and sell. 

Joining Norway and Germany in the ranks of
foreign-currency debt free nations.

Now, Denmark joins neighbors Norway and Germany in the ranks of countries with no foreign-currency government debt. Fellow Scandinavian nation Sweden, meanwhile, maintains about 30% of its government debt (pdf) in foreign currencies. It’s not unusual, nor undesirable, for countries to issue some foreign debt to build currency reserves; the US treasury owes about $1 trillion in foreign currency debt. Issuing debt in dollars will become less attractive as US interest rates rise, but many countries—especially in emerging markets—still find it more affordable than borrowing in local currency subject to much higher rates.

For its part, Denmark’s government still has some 465 billion kroner ($67 billion) in debt, which amounted to 23% of GDP at the end of last year, low by international standards. Around 40% of this debt is held by foreigners, who from now on will only get paid back in kroner.