An economic summary of Middle-earth through the Fourth Age
Future business journalist Ambika Vora has shared a piece with us that readers might really appreciate. You can read the whole thing right here but it starts:
The downfall of Sauron and the beginning of the Fourth Age marked a time of liberation and change for Arda. Unfortunately, though the shadows of Mordor no longer posed a threat to Middle-Earth peace, the economic situation took a turn for the worse. The past few years have been particularly tumultuous, especially after the post-war recession: with Gondor currently teetering over the precipice of a Fiscal Crag, the decline of the Elven Zone and the RIDER-fixing scandal that shattered the reputation of Rohan’s prime financial institutions. Here’s a look at some of the main financial events that have rocked Arda’s economy this age.
Gondor: All that is gold does not glitter – or all that was gold and glittered is gone?
Having sucked up over 500 billion Gondorian castars, the War on Mordor proved to be cripplingly expensive on Gondor’s economy. However, not long after King Aragorn’s ascension to the throne, Gondor fell into one of the worst recessions in Arda history. The burst of the housing bubble and subsequent Minas Tirith meltdown exacerbated the already delicate financial situation. The Osgiliath Stock Exchange (OSE) index dropped to depths deeper than the cracks of doom, and credit rating company Sword & Palantir downgraded Gondor’s precious credit rating from AAA+ to AA-. For years, Gondor struggled against a near-depression, as rampant unemployment and a staggering deficit weighed down the economy.
Though Gondor’s financial situation has improved substantially over the last couple of years, there is another threat looming in the distance: the impending Fiscal Crag, popularly referred to as ‘Mount Doom’ by Gondorians. It is feared that the expiration of Denethor Tax Cuts and the implementation of higher tax rates, coupled with spending cuts, could slash Gondor’s GDP and instigate another recession. Aragorn’s administration has yet to release their official decision regarding the Denethor tax cuts, as well as their policy to prevent a Fiscal Crag fiasco. Read the rest at BusinessToday.com.Posted in Lord of the Rings, LotR Books on February 16, 2013 by MrCere