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I don't see how that assertion follows from the quote. Please elaborate.
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I admit that I may be reading too much into this, and that it is speculative to say the least. But it seemed to me that he would not have gone to the trouble to say that they were "only less formidable than the Balrogs" if there were no Umaiar less than them. He could have been saying that they were greater than the lesser servants such as Orcs and Trolls but that seems obvious. I assumed (perhaps wrongly) that he was talking within the context of Umaiar. Whatever, it was just a passing thought anyway.