"It is clear from a simple inspection of these two figures that the amount of gold coinage Smaug withdrew from circulation represents a significant volume of currency. This would, inevitably, lead to deflation and depressed economic activity." Wouldn't the value of each gold coin rise rather than deflate total economic activity?
The one thing I've learned about economics is that the minute you invoke gold the crazies come out. I think the article is gonzo stupid but I felt like sharing it. I think you could just as easily argue that economically, Smaug could be Civil War, natural disaster, etc.
Returning to the gold standard, long a suicidal political idea, has gained traction in the last year from people other than crazies (well, Republicans, so ... sort of). Will still never happen, I imagine, but it's slightly more legitimate now than it was before our recent shit. That said, I loved this link. Paper currency in Middle-earth. Good stuff.