Political leaders cling to tradition regardless of whether it produces meaningful results. Consider the annual meetings at the United Nations General Assembly in New York, held at significant cost, pomp, and splendor, where leaders proceed to the podium and deliver their scripted speeches against that all too familiar green backdrop. The only memorable address in the last 20 years is Colin Powell's infamous presentation arguing for military action against Iraq based on alleged weapons of mass destruction—a speech that history has thoroughly discredited.
Earlier this week, the Group of Seven Nations–the United States, Japan, Canada, Italy, Germany, France, and the United Kingdom–convened for two days at a mountain resort in the beautiful Canadian Rockies. Today, five of them—Italy, France, Germany, the United Kingdom, and Canada–are pale shadows of their former selves. They appear so powerless as individual nations that any unilateral action they might take in geopolitics would barely register on the global stage.
At its 1995 peak, the G7 commanded 45% of the global economy but has steadily lost ground since. In 2024, the G7’s combined PPP-adjusted GDP stands at $56.6 trillion—just 29% of the global total—while the rest of the world accounts for $138.0 trillion, or 71%.
If one were to focus on the G7's European members and Japan, these nations share a legacy that the world has long repudiated since World War II. Each was once a proud colonial power, manipulating the lives of distant nations occupied by force. Acquiring territory against sovereign rights is now total anathema to these same countries, as evidenced by their unified stance against Russian aggression in Ukraine. Yet deep skepticism persists among the Global South, where these nations are viewed as hypocrites who have found a convenient moral perch after having engaged in centuries of exploitation.
Recognizing that the G7 lacked real influence without the United States and Japan (economic superpowers of the group), the European Union was made a permanent invitee to these gatherings. However, most people worldwide cannot name the EU president, nor can they describe in meaningful terms what actual power this position holds. The European Union remains a loose partnership of 27 member states, each sovereign in fiscal and political matters but bound by complex monetary policies and bureaucratic rules emanating from Brussels. The bloc operates at a glacial pace, relying on old-school diplomacy among members to accomplish anything domestically or internationally.
To maintain relevance, the G7 has invited future international leaders or those currently making headlines. India, having surpassed Japan in GDP and poised to become the world's third-largest economy behind only the United States and China, has been regularly invited since 2019. Prime Minister Modi consistently attends, hoping to elevate his global standing and strike deals on the sidelines—as happened this week, when Canada and India agreed to restore diplomatic relations after tensions over alleged Indian government interference with the breakaway ethnic-Sikh Khalistan group in Canada.
These days, no G7 meeting is complete without the presence of Ukrainian President Volodymyr Zelenskyy, who appears routinely to secure more aid and another communiqué condemning Russia, as though such a statement might somehow bring Moscow to the negotiating table. With President Trump leaving the summit early to return to Washington to manage the Israel-Iran crisis, Zelenskyy failed even to get his favorite communiqué this time. During previous meetings, the G7 has routinely called for Russia to "immediately cease its war of aggression and completely withdraw," with leaders expressing "unwavering support" for Ukraine's sovereignty. Yet beyond sanctions and arms supplies, the G7 has proven incapable of orchestrating a diplomatic breakthrough that might actually end the conflict. It's all theater; all for the cameras.
The world's problems demand solutions from those with actual power to implement them, not endless photo-ops from yesterday's powers desperately clinging to their fading influence. Countries powerful enough to actually change the world's trajectory—Russia and China—remain excluded because existing G7 members refuse to invite "authoritarian regimes."
Consider China, which, despite its flaws, remains a formidable global player. It maintains the world's largest standing army and advanced military capabilities. China dominates numerous industries to such an extent that if Beijing were to control exports based on geopolitical considerations, supply chain disruptions would derail global commerce. For example, China is the only country that makes one particular rare earth, Samarium, which military hardware makers use extensively to make magnets because of the element's ability to withstand extreme heat levels. As the New York Times reported last week, if China ceased exporting these materials, the global military-industrial complex would grind to a halt.
The G7 did make accommodations for about a dozen years, transforming the group into the G8, when it invited President Putin to the group, recognizing that Russia's natural resources and technical capabilities in space and military hardware could contribute to global stability. That romance ended when traditional leaders, more focused on condemning others than examining their own actions, decided to punish Russia for its annexation of Crimea in 2014 following the G7's role in advocating for a regime change in Kyiv. Russia was evicted from the G8 in 2014, and the consequences have been catastrophic, steadily building tensions along the Ukraine-Russia border, and now, nearly four years of war between the two nations, representing the biggest destabilization of Europe since World War II—a point Trump made this week.
The G7's track record reveals a consistent pattern—grandiose promises followed by underwhelming results. G7 nations repeatedly promised $100 billion annually to help developing countries combat climate change, yet they have consistently failed to deliver these funds while largely failing to meet their 0.7% of GNI development aid obligations. Trade commitments regularly stall in a bureaucratic quagmire, with joint communiqués reaffirming commitment to WTO reform while meaningful progress remains elusive.
Without the United States, the G7 becomes a venue where senior diplomats clink wine glasses and issue press releases. In an era demanding decisive action-based leadership, the G7 offers only the hollow theater of international diplomacy—beautifully staged but utterly ineffective. For a president like Trump, who built his legacy on preventing war and promoting peace without making moral judgments about individual nations, the United States becomes an uncomfortable member of these family reunions.
It's time to acknowledge the G7's irrelevance, much like the World Economic Forum in Davos, which has similarly outlived its usefulness, and retire it altogether.
TIPP Picks
Selected articles from tippinsights.com and more
1. Only Democracy Can End Iran’s Nuclear Threat—Abbas Milani, Project Syndicate
2. Trump’s Oil Foil—Editorial Board, TIPP Insights
3. Powell Dodges Reappointment Question—TIPP Staff, TIPP Insights
4. Pentagon Shifts Greenland To U.S. Northern Command—TIPP Staff, TIPP Insights
5. Fed Holds Rates Steady, Eyes Slower Cuts Amid Trump Tariffs—TIPP Staff, TIPP Insights
6. Doomsday Plane Lands Near DC Amid Iran-Israel Tensions—TIPP Staff, TIPP Insights
7. Gabbard: Trump and I Are Saying The Same Thing — Somehow—TIPP Staff, TIPP Insights
8. Trump Teases Action On Iran, Says “Nobody Knows What I’m Going To Do”—TIPP Staff, TIPP Insights
9. Centrifuges Hit, Iran Launches Hypersonic Missile—TIPP Staff, TIPP Insights
10. Airbus Lands Big Orders At Paris Air Show—TIPP Staff, TIPP Insights
11. Supreme Court Upholds Tennessee Ban On Transgender Treatments For Minors—TIPP Staff, TIPP Insights
12. Tucker Carlson Blasts Ted Cruz Over Iran Knowledge In A Heated Interview—TIPP Staff, TIPP Insights
13. TRANSPARENT STUNTS: Democrat Senator, Union Leader Play Victim After Harassing Homeland Security—Tyler O'Neil, The Daily Signal
14. Trump’s Deportation Efforts Backed By Wide Margin, Poll Finds—Jarrett Stepman, The Daily Signal
15. House Gets Opportunity To Defund USAID, PBS, And NPR—George Caldwell, The Daily Signal, The Daily Signal
16. Democrat Rep Goes On Unhinged Rant About Her Own Lady Parts—Ellie Fromm, DCNF
17. A Victory For Sororities: Education Department Rules Sororities Are For Women Only—Lesley Davis, The Daily Signal
18. How Indo-Pacific Allies Can Be ‘Model Allies’: Secretary Hegseth At Shangri-La—Yuichi Kakutani, The Daily Signal
19. Virginia’s Nursing Shortage Persists, But Targeted Strategies Have Brought Growth—Joe Thomas, The Daily Signal
20. Top Trump Lawyer Drops Bombshell Announcement About LA Riots—Mary Rooke, DCNF
21. Tim Walz Says Genocidal Regime Might Be World’s ‘Moral Authority’—Harold Hutchison, DCNF
22. Trump Calls For Iran And Israel To Make A Deal As Death Toll Rises—Virginia Allen, The Daily Signal
23. Nebraska Bans Men In Women’s Sports—Quinn Delamater, The Daily Signal
24. Veterans Affairs Secretary Has A Message For Politicians Who Let Rioters Shut Down Clinics—Elizabeth Troutman Mitchell, The Daily Signal
TIPP Market Brief – June 19, 2025
Your Morning Snapshot
📊 Market Snapshot
- S&P 500: ▼ 5980.87 (0.03% )
- 10-Year Yield: ▲ 4.397%, (0.4 basis points)
- Crude Oil (WTI): ▲ $74.87 (0.04%)
- Bitcoin (BTC): ▲ $105,051.81
- US Dollar Index (USD): ▲ 98.91 (0.03%)
- Gold: ▼ $3,374.28 (0.39%)
Bigger Charts: $SPX | $TNX | $WTIC | $BTCUSD | $USD | $GOLD
📈 Featured Stock
Our pick for today’s featured stock
📰 News & Headlines
Why AST SpaceMobile Stock Soared Higher Today—Johnny Rice, The Motley Fool
AST SpaceMobile: A High-Risk, High-Reward Play on the Future of Connectivity—George Budwell, The Motley Fool
⭐Recent Featured Stocks
Cloudflare Inc. (NET) (6/18)
Oklo Inc (OKLO) (6/17)
ATI Inc (ATI) (6/16)
Mr. Cooper Group Inc (COOP) (6/13)
Nuscale Power Corp (SMR) (6/12)
Centrus Energy Corp (LEU) (6/11)
Irhythm Technologies, Inc. (IRTC) (6/10)
Tutor Perini Corp (TPC) (6/9)
Aeva Technologies, Inc. (AEVA) (6/5)
Zscaler, Inc. (ZS) (6/4)
More here
🧠 Macro Insight
● Markets Flat Ahead of Holiday
The S&P 500 ended mostly unchanged, the Dow dipped (-0.1%), and the Nasdaq edged up (+0.1%) as traders weighed Fed signals and Middle East risks. U.S. markets closed Thursday for Juneteenth.
● Fed Holds, Warns on Tariff-Driven Inflation
The Fed kept rates steady (4.25–4.5%) but reaffirmed its outlook for 2025 cuts (-50bps). Powell flagged inflation risk from Trump’s new tariffs, citing a “meaningful” consumer impact ahead.
● Powell: Stagflation Cloud Lingers
New projections show 2025 inflation at 3%, growth slowing to 1.4%, and the jobless rate rising to 4.5%, signaling mild stagflation risk.
● Iran-Israel Conflict Escalates
Israel struck Iran’s Arak nuclear site; Iran hit an Israeli hospital. Trump said the U.S. “may or may not” intervene. Oil prices inch higher on supply disruption fears.
● Trump Faces Pressure on War Stance
Despite GOP hawks pushing for action, Trump warns Iran of “irreparable damage” while resisting immediate U.S. entry into the fight.
● BoE Decision on Deck
The Bank of England is expected to hold rates at 4.25%. Although the UK CPI dipped slightly (3.4% YoY in May), it is still above the 2% target.
● Crypto Gets a Capitol Boost
The Senate passed the GENIUS Act, setting up stablecoin regulation. Trump praised the move, pushing the House for “lightning fast” approval.
📅 Key Events Today
Thursday, June 19
● All Day – Juneteenth Holiday (U.S. markets closed)
Federal holiday commemorating emancipation.
● 08:30 AM ET – Initial Jobless Claims
Second weekly read due to holiday data delay.
