Gandalf: remember Saruman told us the One Ring is lost forever and many other members of the Council agreed?
Gandalf: turns out Bilbo's Ring is actually the One Ring.
Remember the other time in the Council when Saruman told us he is devising stuff to conquer Mordor?
Gandalf: actually he does want to conquer Mordor... to become the new Sauron. Now hear this, remember instead of paying attention to your concerns he constantly mocked me for smoking too much halfling leaf in the Council in front of everyone? Turns out he himself is addicted to halfling leaves.