February 6, 2024
DIANE FRANCIS
In Donald Trump’s geo-economic war, nation-states are real estate, resources are assets, trade surpluses are profits, and tariffs are weapons. He intends to redraw the world map without firing a shot but by deploying economic firepower. He’s declared interest in acquiring Canada and Greenland to make the world safer and America unbeatable. He hopes to end wars in Ukraine and Gaza by acquiring resources and land. Trump is not a statesman nor a conqueror but is America’s developer-in-chief. He spots bargains, applies pressure, and intends to snap up strategically valuable properties that might benefit the United States in the long run or are derelict. For instance, Canada and Greenland have enormous amounts of untapped resources that will be needed in the future, and their acquisition or partnership would also give America more control over the Arctic. Trump just made a deal with Ukraine to continue military aid against Russia in return for access to its incredible resource base. Then there’s Gaza, a region turned into rubble. Trump proposes to evict its two million people to neighboring countries, then attract partners to rebuild and turn it into a Miami Beach on the Mediterranean.
Trump hopes to turn foreign policy on its head by converting longstanding international disputes, grievances, and wars into commercial transactions. Along the way, he shocks, hints at violence, tramples sensitivities, and ignores cultural, legal, or historical norms in pursuit of deals. His tactics are a form of non-violent arm-twisting, as opposed to blunt force. For example, Trump won’t invade Canada or Greenland but threatens to use “economic force,” such as tariffs, to gain trade concessions and get his way. These unconventional tactics by a superpower dismay the world and are heavily criticized, but Russia and China’s aggressions are demonic. Moscow’s imperialism has sparked vicious wars around the world, and China’s Belt and Road Initiative controls, co-opts, and sometimes bankrupts small countries.
However, Trump sometimes hints at violence. He recently threatened to reoccupy the Panama Canal because Chinese interests control its management, and the canal is a potential logistical chokepoint in world trade. But Panama will avoid confrontation. Other countries may resist or recoil at such maneuvers, but Ukraine did the opposite. It pre-emptively and brilliantly offered Trump a geo-economic gift to help defeat Russia. In December, President Zelensky pitched a plan that Americans could invest in his country’s natural resources, worth $26 trillion, equivalent to Canada’s or Australia’s mineral wealth, if they continued providing military aid. On February 3, Trump agreed. “We’re looking to do a deal with Ukraine where they’re going to secure what we’re giving them with their rare earth and other things,” Trump said Monday at the White House. “We want a guarantee. We’re handing them money, hand over fist.”
Germany objected to this announcement and called Trump’s deal with Ukraine “selfish” in light of the billions in aid that European Union countries have also extended to Ukraine already. But the reality is that American military aid has been critical in waging the war, and indications are that ongoing American military aid has convinced Putin to go to the negotiating table soon.
Germany and the European Union are next. Trump will use his existing threat of up to 30% tariffs against their imports to “shakedown” Europe into providing more aid to Ukraine, buying more American weapons and liquefied natural gas, and handing over to Ukraine the $300 billion in frozen Russian central bank assets to pay for weapons and rebuilding. So far, Europe’s central bank has warned that seizing these funds will undermine confidence in the Euro and cause a drop in its value and deposits. However, Trump will push for the release of Russian funds and for Europe to spend more on its military defense through NATO.
Trump also threatens to damage Russia’s economy by lowering oil prices and increasing sanctions against Russian oil corporations, oligarchs, and banks involved in oil trading. Trump’s treasury secretary, Scott Bessent, told Congress he would be “100 percent on board for taking sanctions up, especially on the Russian oil majors, to levels that would bring the Russian Federation to the table.”
Canada and Greenland are naturally appalled at Trump’s aggressive annexation suggestions, but he persists. Of a US-Canada combination, he waxed: “You get rid of that artificially drawn line, and you take a look at what that looks like, and it would also be much better for national security. Canada and the United States, that would really be something.” Further, Trump has pursued Greenland since 2019 and believes its acquisition is essential. “For purposes of national security and freedom throughout the World, the United States of America feels that the ownership and control of Greenland is an absolute necessity,” Trump wrote on Truth Social. But neither territory is for sale and, if they were, would be unaffordable, costing trillions.
But Trump’s most brazen deal was announced this week — to take over Gaza. It’s a scheme that will take years to accomplish, shake up the Middle East, and has worried many worldwide. The New York Times headline was: “With Gaza Plan, an unbound Trump pushes an improbable idea” that abrogates international as well as American laws, would displace two million people, and require the collaboration of neighboring countries as well as the involvement of American troops. It added, “Never mind that resettling two million Palestinians would be a gargantuan logistical and financial challenge, not to mention politically explosive. Never mind that it would surely require many thousands of U.S. troops and possibly trigger more violent conflict.”
The Wall Street Journal headline said, “Trump campaigned on ending foreign entanglements. Now, he wants to own Gaza. Mideast powers reject Trump’s proposal.” Saudis and other rich Arab nations, who would presumably pay for the eviction and relocation, have rejected the notion. So have Egypt and Jordan, whose governments will be asked to house the Palestinians.
To many, America’s landlord is becoming unhinged because, they say, countries cannot simply be bought and sold like buildings. But they are wrong. Buying and selling territories has occurred throughout history, and so have geo-economic tactics. Manhattan was bought for beads and booze; Russia bought the Baltic states in 1721 from Sweden; Florida was bought from Spain; Singapore was bought by Britain; the Phillippines was bought in 1898 by America from Spain; the $15-million Louisiana Purchase in 1803 doubled the size of America, and in 1867, Alaska was snapped up by the United States from the Russian Empire for $7.2 million. That deal
was dubbed “Seward’s Folly” (after the Vice President who negotiated the purchase) because it was a frigid wilderness and considered worthless.
However, Vice President Seward persisted, and today, that purchase price would be equivalent to $129 million, which makes it a steal of a deal. The State of Alaska continues to produce minerals, precious metals, and 400,000 barrels of oil daily and still has another 3 billion barrels left in the ground. Many may disdain Trump’s real estate approach to foreign affairs, but it is not altogether crazy if it outsmarts Russia and China and makes the world safer. Besides, as Mark Twain once said, “Buy land; they’re not making it anymore.”