Thursday, January 08, 2026

Greenland Good for the Greenback. Good for Global Stability: While Democrats & RINO's play Two Dimensional Chess

The United States has long viewed Greenland as vital to national security. In the early 20th century, it included Greenland among several European possessions in the Western Hemisphere to preemptively seize and fortify in the event of a threatened attack on the US.






As of early 2026, the status of these developments is as follows:

Legislative and Executive Action: In early 2025, the Trump administration enacted a series of measures to "unleash" American energy. This included the Unleashing American Energy executive order (January 20, 2025) and the establishment of the National Energy Dominance Council on February 14, 2025.

Production Records: U.S. crude oil production reached several all-time highs in 2025, hitting a monthly record of 13.6 million barrels per day (b/d) in July 2025.


Market Impact: Increased production contributed to a drop in global prices. As of early 2026, Brent crude is forecast to average roughly $52 per barrel for the year, down significantly from 2024 levels.


Energy Enforcer Status: The U.S. has ramped up LNG exports, with capacity expected to increase to 16 billion cubic feet per day (Bcf/d) by 2026, solidifying its role as a major global supplier.


Military Presence: While not a U.S. territory, Greenland is already integrated into North American defense through the Pituffik Space Base (formerly Thule) and the 1951 Defense of Greenland Treaty, which supports NORAD and NATO operations.


In early 2026, the Trump administration intensified rhetoric regarding Greenland, with officials refusing to rule out military or economic pressure to secure "control" of the island to counter Russian and Chinese Arctic influence.





Strategy Vs Democrats & RINO's Two Dimensional Chess 




The strategic importance of the United States acquiring Greenland centers on its critical role in Arctic security, missile defense, and global trade routes amidst increasing competition with Russia and China:





Missile Defense and Early Warning
"Golden Dome" Shield: The Trump administration views Greenland as a cornerstone for its proposed "Golden Dome" missile defense system, a multibillion-dollar initiative designed to intercept threats over the Arctic, which is the shortest missile path to the U.S. mainland.

The island hosts Pituffik Space Base
(formerly Thule), a vital facility for the U.S. Space Force that provides early warning for ballistic missiles and space surveillance.


Countering Russia and China: The U.S. aims to curb Russian military expansion—which has included reopening over 50 Soviet-era Arctic bases—and China’s "Polar Silk Road" ambitions.


Greenland is essential for controlling the GIUK Gap
(Greenland-Iceland-UK), a strategic maritime corridor necessary for monitoring Russian submarine movements entering the North Atlantic.


Northern Command Transition: In June 2025, the U.S. shifted Greenland from European Command to Northern Command, signaling its status as a primary asset for homeland defense.



Natural Resources and Critical Minerals:
Rare Earth Elements (REEs): Greenland holds some of the world's largest untapped deposits of rare earth minerals (estimated at 1.5 million metric tonnes), which are essential for high-tech manufacturing, electric vehicles, and military hardware.


Acquisition of Greenland would allow the U.S. to secure these minerals and break its dependence on China, which currently dominates the global REE supply chain.


The island may hold significant offshore oil and gas reserves, and its ice sheet contains roughly 20% of the world's fresh water.


Future Shipping Routes. As Arctic ice melts, new routes like the Northwest Passage and the
Transpolar Sea Route are becoming navigable. These could shorten transit times between Europe and Asia by up to 40%, potentially bypassing the Suez and Panama Canals.


Controlling Greenland would allow the U.S. to manage these emerging global "shipping highways" and prevent adversaries from establishing physical chokepoints.
Current Status and 2026 Context
As of early January 2026, the White House has described acquiring Greenland as a "national security priority". While Danish and Greenlandic leaders have repeatedly stated the island is "not for sale," the Trump administration has not ruled out economic pressure or military options to secure the territory.



If Greenland is such a strategic asset, why is Denmark wasting it, you may ask.


The subject of current geopolitical debate, intensified by the Trump administration's renewed push to acquire the island in early 2026. While critics argue Denmark has under-invested in its defense, recent actions suggest a major strategic shift, prompted by the Trump administration.


Historically, Greenland’s security was heavily reliant on the U.S. presence, with Denmark's own physical presence often symbolized by the elite but small Sirius Dog Sled Patrol.

Denmark provides Greenland with an annual block grant (about $600 million), making up roughly 20% of Greenland's GDP and up to 80% of its government budget. Some see this as a financial burden on Denmark that fails to capitalize on Greenland's vast untapped resources.

Despite having some of the world's largest deposits of rare earth elements and critical minerals, exploration has been slow due to harsh climates and strict environmental regulations. 

Denmark’s Strategic Counter-Response (2025–2026)

In response to rising Arctic tensions and U.S. pressure, Denmark has significantly accelerated its involvement: 

Massive Military Spending: As of January 2026, Denmark has committed approximately $4.2 billion to boost Arctic security, including the procurement of new patrol ships, long-range surveillance drones, early-warning radars, and satellite capacity.

Denmark is spending an additional $4.5 billion to expand its fleet of F-35 fighter jets to 43 to better manage Arctic threats.

Economic Development: In late 2025, Denmark and Greenland signed a new framework agreement allocating DKK 1.6 billion ($235M) for infrastructure like ports and healthcare to foster a more self-sustaining economy. 

Diplomatic and Sovereignty Constraints

Denmark's cautious approach is often a result of balancing sovereignty with local autonomy: 

Under a 2009 agreement, Greenland has the right to decide its own future, including independence. Denmark cannot "sell" Greenland because it is a self-governing territory, not a colonial possession.

Danish Prime Minister Mette Frederiksen warned in January 2026 that any U.S. military attempt to take over Greenland would mean the "end of NATO." Not a bad thing seeing how NATO prompted the Russian invasion of Ukraine.

Blocking Rivals: While Denmark allows U.S. investment, it has actively moved to block Chinese and Russian infrastructure investments to maintain Western security interests



Strategic Value Summary (2026)
Asset Type Strategic Importance
MilitaryCrucial for monitoring hypersonic cruise missiles and managing the GIUK Gap (naval choke point).
ResourcesMassive deposits of rare earth elements vital for EVs, turbines, and defense technology.
TradeMelting ice is opening the Northwest Passage, which could drastically reduce Asia-Europe shipping times.




Summary of Agreements and Discrepancies
Point Status as of January 2026
America First Energy Acts (Feb 2025)Confirmed: Executive orders and council established to drive drilling and LNG exports.
Record U.S. Oil/Low PricesConfirmed: Record production of 13.6M b/d in mid-2025; global prices have dropped.
Greenland Folds into U.S./NORADAlready part of the NORAD/NATO defense umbrella, but remains Danish territory despite renewed U.S. interest.
Arctic Bases/Trade LanesOngoing: U.S. and Denmark are both moving to enhance surveillance and maritime security in the region.



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