Russian dolls

Russias's gross GDP numbers are going to be like Russian dolls for a while - each one a little smaller than the previous one.

The US's tactics work. Excluding Russia from capital markets will slowly ratchet up the pressure on the Kremlin. Putin's desperate attempts to talk up the economy for local media consumption a couple of days ago were simply that - desperate. He's screwed and he knows it. The problem is that as he gets more desperate he is likely to view further provocations and expansionist moves as the best way to shore up his popularity at home. Baltic states beware.