US officials have reportedly discussed sending direct payments to Greenland's residents as part of an unprecedented strategy to convince the Danish territory to join the United States. According to sources familiar with internal White House deliberations, the payments being considered range from $10,000 to $100,000 per person, potentially totaling nearly $6 billion for the island's 57,000 inhabitants.

Payment Strategy Details

The financial incentive approach represents one of several tactics being explored by the Trump administration to acquire Greenland, despite repeated assertions from Danish and Greenlandic authorities that the territory is not for sale. White House officials have acknowledged that discussions about "what a potential purchase would look like" are actively underway, with renewed urgency following recent geopolitical developments.

The exact logistics and timing of any payment system remain unclear, including when payments would be distributed and what specific commitments would be expected from Greenlanders in return.

European Opposition Intensifies

European leaders have responded with strong opposition to the US acquisition plans. France, Germany, Italy, Poland, Spain, Britain, and Denmark issued a joint statement emphasizing that only Greenland and Denmark can decide matters regarding their relationship. The unified European response highlights growing tensions between NATO allies over Trump's territorial ambitions.

Greenland's Prime Minister Jens-Frederik Nielsen directly addressed the annexation discussions, writing on social media: "Enough is enough … No more fantasies about annexation." The statement came after Trump reiterated to reporters that the US "needed to acquire" the island for national security purposes.

Strategic Justifications and Alternative Approaches

Trump has consistently argued that Greenland's acquisition is essential for US national security, citing the territory's rich mineral deposits needed for advanced military applications and its strategic location in the Western Hemisphere. "We need Greenland from the standpoint of national security, and Denmark isn't going to be able to do it," Trump stated during recent remarks.

Beyond direct payments, the administration is exploring a Compact of Free Association (COFA) agreement with Greenland. This arrangement, currently used with Pacific island nations including Micronesia, the Marshall Islands, and Palau, would involve:

• US provision of essential services like mail delivery and military protection
• Free US military operations within the territory
• Largely duty-free trade with America
• Requirement for Greenland's independence from Denmark

Independence Dynamics and Public Opinion

While surveys indicate an overwhelming majority of Greenlanders support independence from Denmark, economic concerns about separation costs have prevented most Greenlandic legislators from calling for an independence referendum. Notably, polling also shows that most Greenlanders, despite openness to Danish separation, do not want to become part of the United States.

The payment strategy appears designed to address these economic concerns while incentivizing either an independence vote or subsequent agreement to join the US. However, the approach risks appearing transactional to a population with a complex history of debating self-determination and economic relationships.

Secretary of State Marco Rubio is scheduled to meet with his Danish counterpart next week in Washington to discuss Greenland, indicating the administration's commitment to pursuing the acquisition through multiple diplomatic channels alongside the financial incentive discussions.

President Donald Trump announced a significant federal intervention in the mortgage market, directing the government to purchase $200 billion in mortgage bonds using cash reserves from Fannie Mae and Freddie Mac. The initiative represents Trump's response to persistent voter concerns about housing affordability as Americans continue to face elevated home prices and mortgage costs.

Government Mortgage Bond Purchase Details

Trump stated on social media that the two government-controlled mortgage companies, Fannie Mae and Freddie Mac, possess $200 billion in cash that will fund the bond purchases. Both companies have remained under government conservatorship since 2008 following the housing market collapse during the Great Recession.

"This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable," Trump posted on social media. White House officials have not yet provided specific timelines for implementing the purchase program.

Current Mortgage Market Conditions

The mortgage market faces significant challenges with rates averaging around 6.2% according to Freddie Mac data. Thirty-year mortgage rates have remained above 6% since September 2022, contributing to housing affordability concerns across the country.

The elevated rates have created a "mortgage rate lock-in effect," where homeowners with pandemic-era low rates of 3% or less remain reluctant to sell their properties, reducing market inventory and limiting housing options for potential buyers.

Economic Impact Analysis

Daryl Fairweather, chief economist at Redfin, provided analysis suggesting the government mortgage bond purchases could reduce 30-year fixed mortgage rates by 0.25 to 0.5 percentage points. However, she characterized the approach as "putting a Band-Aid on a deeper issue" that may not sufficiently address underlying market constraints.

"Lowering mortgage rates by maybe a quarter point or half a point maybe, will encourage more demand on the margins, but I don't think it's going to solve the restrictions that exist in the housing market," Fairweather explained. She noted that the purchases would not address the chronic shortage of homes on the market, which continues to make homeownership unaffordable for many Americans.

Federal Reserve Context and Market Background

The Federal Reserve has historically purchased mortgage bonds during economic downturns to help reduce interest rates, enabling many homeowners to refinance at favorable terms. The Fed currently holds approximately $2 trillion worth of mortgage-backed securities on its balance sheet, down from $2.7 trillion in June 2022 as it unwound holdings following pandemic recovery.

According to St. Louis Federal Reserve data, outstanding mortgage debt totaled roughly $21.1 trillion as of mid-last year. Many homeowners capitalized on low interest rates during the pandemic to refinance their mortgages at rates of 3% or lower, contributing to the current inventory shortage as these homeowners avoid selling.

Housing Market Challenges and Risks

The initiative carries potential risks as Trump would utilize cash reserves designed to serve as buffers against economic downturns similar to the Great Recession. This approach could leave Fannie Mae and Freddie Mac more vulnerable to negative housing market developments, representing a calculated bet that such scenarios remain unlikely.

Home prices have consistently outpaced income growth due to persistent construction shortfalls, creating challenges for first-time homebuyers and existing owners seeking to upgrade properties. These affordability issues have persisted across multiple administrations and represent ongoing recovery challenges from the 2008 housing market collapse that triggered the global financial crisis.