“I think we’re going to get it – one way or the other, we’re going to get it.”
It wasn’t the first time President Donald Trump said something outrageous. And it won’t be the last.
But on March 3, 2025 in his address to Congress, he put on his real estate hat to talk about the U.S. buying Greenland.
He went on to say “We will keep you safe. We will make you rich. And together, we will take Greenland to heights like you have never thought possible before.”
MGGA: Make Greenland Great Again.
Greenland is the largest non-continental island on the planet. At more than 830,000 square miles, it’s more than a quarter of the size of the continental U.S. Yet it only has a population of 56,500 people.
Part of the reason Trump wants to bring Greenland under U.S. control is because it sits between North America and Russia. It’s the shortest route for a potential ballistic missile launching from Russia to the U.S.
It’s also a gateway to the Atlantic Ocean for Russia’s Northern Fleet. A key waterway for national security.
That’s why the U.S. maintains a military presence on the island at the Pituffik Space Base. It’s part of a deal that the U.S. maintains with Denmark, which currently controls Greenland.
But it’s far more than just a military outpost. Greenland is rich in resources. Very rich.
That includes critical metals. The island holds at least 43 of the 50 critical minerals listed as vital to national security by the U.S. Geological Survey (USGS). Like copper, graphite, lithium, silicon and most importantly, rare earths.
In fact, Greenland boasts one of the largest deposits of rare earths in the world. According to the Geological Survey of Denmark and Greenland, the island holds at least 36 million metric tons of rare earth resources. That would put it just behind China’s 44 million metric tons.
Not to mention it has about 17.5 billion barrels of offshore crude oil and 4.19 trillion cubic meters of natural gas.
So while some people may look at Trump as crazy for even proposing to buy Greenland, there are plenty of reasons to at least cozy up to the island.
And it all looks to be part of a grand plan. One that would make Sir Walter Raleigh proud.
Cover Story
In the last issue of Strategic Edge, I talked about how dominance over the seas is what helps create world powers. From the Vikings to the Spanish to the English, control over the seas helps countries thrive in both world power and trade.
Something Sir Walter Raleigh figured out well before England became the most dominant nation on Earth for more than two centuries.
I even showed you how English exports exploded once gaining control of the seas, going from under £1 million to £58 million. (Or like going from an approximate £10 billion in today’s value to more than £6.5 trillion.)
The point is, if you take a step back and look at what’s happening today, it looks as if the U.S. is working to realign global trade by taking control of the seas.
And while all the talk was about Greenland at the time, it was just a cover story. What’s happened since is giving us a clear picture of the world game board.
Strait to Strait
Take a look at the image below. It shows different waterways around the world. Ones that are important for global trade.
The Malacca Strait handles about 25% of all global traded goods. The Singapore Strait sees almost 50% of global seaborne trade.
And by now, we all know the Strait of Hormuz handles about 25% of global oil shipments. And nearly a third of liquefied natural gas.
Every one of these waterways is strategically important in some way. Whether it’s due to the amount of trade flowing through them. Or the other bodies of water they connect to.
In fact, according to the United Nations Conference on Trade and Development (UNCTAD), over 80% of world trade by volume is by sea. And that won’t change anytime soon.
But those waterways aren’t the only ones that are important. Sometimes you have to start in your own backyard before you make the big leap.
During his second inaugural address in January 2025, President Trump said, “China is running the Panama Canal, and we didn’t hand it over to them. We gave it to Panama and we’re taking it back.”
Most people ignored it. Some maybe even dismissed the comment.
But when you learn that the Panama Canal handles nearly 70% of cargo to or from the U.S., it starts to make more sense.
It’s a strategic waterway for U.S. trade.
So when CK Hutchinson, the Hong Kong based owner of the Balboa and Cristobal ports – at either end of the canal – decided to sell them, tensions rose as China angled to be part of the deal. But with pressure mounting from the U.S. government, ultimately a group led by Blackrock won out.
That deal eventually opened up the current game of naval chess. And it all happened while the world focused on President Trump’s comments on Greenland.
The obvious major move since then is the war in Iran and eventual blockade of the Strait of Hormuz.
Regardless of what you think of it, the outcome is looking clearer. And to me, it wasn’t just about nuclear weapons. It was far more than that.
It was also about trade and the flow of energy.
By effectively controlling the Strait through a blockade, the U.S. signaled that it still maintains supremacy of the seas. And that is has the capacity to offset global oil consumption from the Middle East to the U.S. Something we can see just by looking at U.S. oil exports.
Today with peace on the horizon, exports are normalizing.
And even though we see headlines flash almost daily about how Iran “closed” the Strait for a host of reasons, shipments through the Strait are actually increasing.
Meaning the only real cause for ships not transiting the Strait was because a blockade was in effect.
Because of that, I believe the price of oil is actually going to head lower from here as more and more shipments from the Middle East transit the Strait. Something we’re already seeing happen.
All this means is we’ll probably see the recent uptick in inflation start to head lower, easing any concerns for the markets.
But that’s just one part of the story. And it’s not just oil. What you may not know is what happened while no one was looking.
During the war, the U.S. made more strategic moves when it comes to global trade chokepoints.
Back in April the U.S. entered into a joint military relationship with Indonesia. That puts the U.S. Navy in the Malacca Strait. Think of it more as the Navy acting as its protector.
On the heels of that, the U.S. signed a defense agreement with Morocco. As part of that agreement, both countries agreed to joint maritime route security. That includes for the Strait of Gibraltar, which connects the Mediterranean with the Atlantic Ocean.
Look again at the map I showed you earlier.
Are you starting to notice a pattern?
Panama. Gibraltar. Malacca. Hormuz… It’s maritime geometry. Pressure points that can either freeze the global economy…or enrich it. And if the U.S. is taking a key role in protecting sea lanes, it also stands to benefit.
Power Shift
Now you may agree with me on the premise. Or you may not. And that’s ok.
But these big picture game boards can have a big influence on the markets…and your portfolio. How you position for it may just determine how well you perform in the future.
When you put it all together – from the war over interest rates I discussed several weeks ago (here and here) to regaining control of the seas – it looks as if the world power structure is shifting back into U.S. hands.
I believe that means an advantage for U.S. companies and ultimately, U.S. stocks.
And don’t drop the ball on Greenland. It initially played cover for what’s happened so far this year. But its no less part of the plan than it was a year ago.
(Members of Strategic Trader got ahead of the game and are already benefitting, with a Greenland focused pick up 280% so far.)
At the end of the day, the game of geopolitical chess is long and complicated. And if you can get a good picture of what’s happening, you can position for the next big winner.
Control the market for money, control the global financial system. Control the seas, control the trade of the world. Control the trade of the world and command its riches.
Regards,
Editor, Strategic Trader