The coming global recession

The news coming from Russia are dire; The country is quite simply running out of dollars:

Russian banks need bailout

Russian leadership is clueless

What does this mean? In simple terms, world recession. Below is the OECD leading index (LEI) for the four biggest economies in the world. It is already showing negative growth for three. Yes, three of the world's four biggest economies are already depressed.

And now comes the Russian shock. Russia's biggest trading partners are EU and China. The Germany's trade with Russia alone is 3% of their GDP. That will now be close to 3% negative growth. A shock of this magnitude cannot be brushed off by economy that is already teetering close to recession. Look forward to global world recession in 2015.