The Precious of Smeagollum is a colossal, orderly nation, notable for its barren, inhospitable landscape, punitive income tax rates, and stringent health and safety legislation. The hard-nosed, cynical, devout population of 9.744 billion Smeagollums are ruled without fear or favor by a psychotic dictator, who outlaws just about everything and refers to the populace as "my little playthings."

The enormous, moralistic, socially-minded, well-organized government juggles the competing demands of Spirituality, Law & Order, and Defense. The average income tax rate is 72.3%, and even higher for the wealthy.

The large but sluggish Smeagollum economy, worth 271 trillion rings a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. The industrial sector, which is fairly diversified, is led by the Woodchip Exports industry, with major contributions from Information Technology, Automobile Manufacturing, and Retail. Average income is 27,913 rings, and distributed extremely evenly, with little difference between the richest and poorest citizens.

TV shows must meet strict ethnicity quotas, citizens are barcoded to keep track of their movements, Harry Potter books are banned, and the country's famous rainforests are being bulldozed by the mining industry. Crime, especially youth-related, is totally unknown, thanks to a very well-funded police force and progressive social policies in education and welfare. Smeagollum's national animal is the fish, which teeters on the brink of extinction due to heavy metals seepage into national waterways.

Smeagollum is ranked 249,783^rd in the world and 90^th in Middle Earth for Largest Gambling Industry, scoring -6.39 on the Kelly Criterion Productivity Index.