How the U.S. Could Acquire Greenland Expert Insights and Analysis

President-elect Donald Trump has set his sights on a massive real estate deal – acquiring Greenland from Denmark, despite the Danish government’s firm stance that the territory is not up for sale. While this proposal may seem outlandish, experts have been weighing in on the potential cost and feasibility of such a transaction.

David Barker, a seasoned real estate developer and former economist at the New York Federal Reserve, recently offered his perspective on valuing Greenland. Drawing parallels to historical land acquisitions like Alaska and the Virgin Islands, Barker estimated that Greenland’s value could fall within a wide range of $12.5 billion to $77 billion.

When considering the purchase of Alaska in 1867 for less than 2 cents per acre or the acquisition of the Danish West Indies (now known as the U.S. Virgin Islands) in 1917 for $25 million, it becomes evident that historical precedents exist for such territorial transactions driven by national defense interests.

Barker emphasized that while these comparisons provide some guidance, they are not perfect analogies due to differences in economic contexts and strategic considerations. Adjusting these historical prices based on changes in Gross Domestic Product (GDP) over time allows for a more nuanced evaluation of what an appropriate price tag for Greenland might look like.

Nikola Swann, an expert in global governments and multilaterals, highlighted the strategic significance of Greenland as a location with longstanding military importance for both Denmark and NATO allyship with the United States. This underscores how geopolitical factors beyond mere economic valuation play a crucial role in assessing the feasibility of any potential deal.

In essence, while Trump’s interest in purchasing Greenland may seem unconventional at first glance, exploring its financial implications through expert analysis reveals a complex interplay of historical precedents, strategic considerations, and diplomatic relations that would shape such a monumental transaction.