Saturday, August 30, 2025

Books: Annihilation by Michel Houellebecq



 
(Drivebycuriosity) - Michel Houellebecq belongs to the most important contemporary authors. His novels are analytical, philosophical and entertaining. And he likes to provoke. Houellebecq`s latest novel "Annihilation" comes up to his reputation (amazon ). 

The complex plot is set in France around the year 2027 and focuses on a man in his late 40s (this is a spoiler free blog). There are 2 basic threads, one following the protagonist´s professional and the other his private life. He has a well paid job in the French administration, "at the heart of the state apparatus" and is friend with the French minister of Finance. This thread describes political developments in France and the preparations for an upcoming election. 

The private thread focuses on marriage, the lives of siblings and health issues. Parallelly are happening mysterious & scary events and the protagonist has often bizarre dreams.

This is a spoiler free blog, so I won´t tell in which directions these threads lead, but the title "Annihilation" gives something away. Don´t expect an easy summer read. 

As usual with Houellebecq novels that I have read, I am not too much impressed by the plot. But what makes me reading him again and again - and makes me a fan of him - are his his sharp wit and his analytical & precise musings about almost anything.

This novel is of course philosophical - as usual for Houellebecq - with a pessimist undertone. There are intelligent reflections about French politics, industrial politics, global terrorism, old age and more.

 

              No Direct Contact With Matter 

 

Here some examples: 

"Lawyers and journalists were pretty much the same thing, in fact they both seemed to belong in the same disreputable world, in close touch with lies, with no direct contact with matter, reality, or any form of work". 

Baby boomers "weren`t only more energetic, more active, more creative and broadly speaking more talented that us in every point of view".

In the 1980s "things still moved quickly in those days, much less quickly than in the 1960s, of course, or even in the 1970, the deceleration and immobilization of the West, heralding its annihilation, had been progressive".

"The French economy had become powerful and a big exporter, but the level of productivity had increased to insane proportions, and unqualified jobs had almost completely disappeared"  

"Paris was a city with a weak level of social control and a high rate of delinquency".   

"By granting greater value to the life of a child - when we have no idea what he will become, whether he will be intelligent or stupid, a genius, a criminal or a saint - we deny all value to our real actions. Out deeds, whether heroic or generous, all the things he have managed to accomplish, the things we have made, none of that has the slightest worth in the eyes of the world any longer... Devaluing the past and the present in favor of times to come, devaluing the real and preferring a virtual reality located in a vague future, are symptoms of European nihilism."

 

           The Roots Of Nihilism 

Houellebecq is inclined to believe "that the nihilism "began with Christianity, the tendency to become resigned to the present world, however unbearable it might be, as we wait for a saviour and a hypothetical future, the original sin of Christianity".

"The liberal doxa persisted in ignoring the problem, in the naive belief that the lure of material gain could be substituted for any other human motivation, and could on its own supply the mental energy necessary for maintaining of a complex social organization". 

"We always communicate, more or less, within a particular age range; people who belong to a different age range, to whom you are not otherwise connected by a direct family relationship; the billions of people with whom we share the planet, have no real existence in your eyes". 

 

What Made Great Kings Great

"It`s probably normal for old people to take an interest in history, which contextualizes their own passing by retracing the fates of important, illustrious and sometimes even all-powerful people who had nonetheless returned to dust." 

Why the kings of France had gone down in history as great kings: "Not reducing the territory of the kingdom, on the contrary increasing it if possible, either through purchases or more often through wars, while at the same time avoiding increasing the costs of mercenaries to excess, and more generally avoiding any unnecessary fiscal pressure. Avoiding civil wars within the kingdom, in particular religious wars, they had always been the deadliest, which had been achieved by unambiguously designation a single dominant region .....Perhaps increasing the prestige of the kingdom by erecting monuments and supporting the arts. For some centuries this ideal programme had ensured the prestige of the curious partnership of Richelieu and Louis XIII; no one really knew how it worked, but the fact remained that it had". 

"When one is dealing with a pure opportunistic demagogue like Jacques Chirac, or other local personalities on a lesser intellectual scale, who sometimes won certain elections by virtue of their popularity among the very stupid, and who thus saw themselves as being elevated much higher than their normal level via a regrettable fate".       

Houellebecq also adds descriptions of rivers, cityscapes, the taste of pussies, the therapeutic influence of escape literature like Conan Doyle´s Sherlock Holmes stories and much more. 

The image above is taken from the book and refers to parts of the plot. 

Read it! 

Sunday, August 17, 2025

Economics: Are Monopolies Real?


 (Drivebycuriosity) - There is a lot ado about monopolies. Since the Sherman Antitrust Act from 1890 US politicians have been fighting alleged monopolies. They claim that there exist corporations that are too big and that these are crushing competition & harming consumers. The 
U.S. Department of Justice (DOJ runs now a huge law suit against Google, a corporation that offers search, maps and other services predominantly for free. The DOJ claims that Google maintains a monopoly and they attempt to break up the corporation. Part of the intended breakup would by a forced sale of the Google Chrome Browser.

Last week Perplexity made an offer to purchase Google`s Chrome Browser for $34.5 billions ( cnbc). Who is Perplexity? Perplexity is a start up, an American privately held software company offering a web search engine that processes user queries and synthesizes responses, says wikipediaPerplexity was founded in 2022!  

Perplexity is a nice example for companies that suddenly come out of nowhere and attack the alleged monopolies. The fact that Perplexity, that exists only for 3 years, expects to get $34.5 billions from investors shows that there is a lot of money available to enter an attractive market and to challenge the leader.

The DOJ ignores that Google, who gets most of the revenues from advertisements on their platforms, is competing against Meta and other giants and is already losing market share to Amazon`s advertising business ( realclearmarket). 

 


 

And who remembers MySpace? The company was once the leading social network and regarded as a monopolist theguardian). But then came Zuckerberg out of nowhere and destroyed MySpace`s "monopoly" by creating Facebook. 

When a company has success it will inspire copycats who want a share from the pie. When Jeff Bezos started Amazon in the year 1994 his company was a monopolist, but just for a very short time. Amazon`s success story animated worldwide others to offer similar services.  

Today there are thousands of companies selling online, including giants like Walmart, Target, Best Buy & Costco, who all developed large online departments, and there also exist a lot online platforms like Overstock, Shopify, Wayfair, Etsy & Ebay, who all are successfully copying Amazon.

 

                    Perpetual Struggle  

Amazon was forced to be cost conscious and to become more and more efficient in order to survive the growing attacks. "What doesn´t kill me, will make me stronger", said Nietzsche. The perpetual struggle between innovators who turn into market leaders and their copycats is called competition, the yeast of the economy. The permanent struggle raises efficiency, suppresses costs and constrains prices for the benefit of the consumers.

There exist indeed real monopolies. Only the U.S. Department of the Treasury has the right to print US bank notes, do not try it at home. And there are monopolists owned and protected by the US government, states, counties and by laws, like JFK, USPS, Port of Los Angeles or Amtrak.  

Contrary to them big corporations like Google, Microsoft, Meta, Apple & Amazon and others all are competing against each others and versus countless challengers. The founders of Sherman Act and today the DOJ have no idea how the economy functions, they are economic illiterate and ignorant of history.

Saturday, August 16, 2025

Science Fiction: Why Tomorrow Factory By Rich Larson Is Lots Of Fun


 (Drivebycuriosity) - Rich Larson belongs to the up and coming writers in the science fiction genre. His short collection "Tomorrow Factory", published 2018, is lots of fun ( amazon). The collected 23 stories span a considerable bandwidth and are all crispy, quirky & cool. 

I have two favorites:

Innumerable Glimmering Lights" follows octopus-like intelligent beings who live in an ocean below miles of ice. One of them is ambitious and wants to find out what is beyond the ice - causing a lot of trouble. Lawson invented a plausible ecologic & social system of smart submarine beings who have their own ways to communicate - a master piece inspired by evolution, biology & chemistry. 

The Ghost Ship Anastasia: The crew of a spaceship tries to recover a very bizarre spaceship, leading to strange experiences - a horror story

 
I also enjoyed: 

"You make Pattaya": A funny con story about a farang and a local hooker set in Thailand`s sex capital 

"Circuits": An AI is piloting a train circling a wasted planet - again and again 

"Every so often": A Time travel story

"An Evening with Severyn Grimes":  A billionaire gets abducted by a group of radical terrorists. A slick near-future thriller  

"Datafall" In the past a whole village was excited when a circus came to town. In this story the population of a peninsula is excited because they get - for a very short time - access to the internet and the cloud. I remember when I got my internet access in the late 90s - what a change!   

"The Sky didn`t load today": Surreal cyper-punk 

"Atrophy": Another horror story - set in a radioactive contaminated world 

I am convinced that the rest caters many readers with different tastes. 


 

Tuesday, August 12, 2025

Economy: Why Doesn`t Inflation Get Hotter In Spite Of Trade War & Rising Tariffs?


 (Drivebycuriosity) - There is a lot ado about President`s Trump`s trade war and the tariff hikes. Rightly so, his tariffs do a lot damage. But inflation stays tame. In July the price level rose just 2.7% y-o-y (image above cnbc ). 

Tariffs do not create inflation! They hike the prices of imported goods and goods from producers who compete with foreign producers. But other prices, like houses, dentist visits, cinema admissions and many others, are not touched. Economists talk about relative prices, contrary to the general price level.

Milton Friedman said "inflation is always and everywhere a monetary phenomenon". He was right. The money volume, the amount of money available in the whole economy, restricts how much people can spend. If they have to pay higher prices for imported goods, then they purchase fewer of them or they spend less for other goods & services.

The recent high inflation was caused by a deluge of money in the years 2020 & 2021. In 2020 & 2021 the Biden government flooded the economy with stimulus checks in the value of trillions of dollars to fight the Covid19 recession (American Rescue Plan). The government checks got financed with massive bond purchases by the Federal Reserve (Quantitative Easing known as QE1,QE2 & QE3).

The government money landed directly on the bank accounts of the Americans, blowing up the money volume M2 (bank notes & coins & deposits at banks). Milton Friedman described this as helicopter money (cato ). As a result in 2021 & 2022 the US money supply M2, the engine of the inflation, jumped 40%. Unfortunately the money deluge met a constrained supply of goods & services partly - partly because of Covid19. So the price level inevitably had to jump and the inflation rate (first derivation) went up.

 

                         Causal Relationship

The causal relationship between the money supply and inflation was already recognized by Nicolaus Copernicus! The astronomer explained in the year 1517 why "too much money" causes inflation. Copernicus` "quantity theory of money" is based on observations: Early in the 16th century Spain conquered today`s Latin America and looted the silver stocks. The Spaniards send the precious metal to Europe where it was printed into coins and used as money.

As a result the European money supply jumped, but the supply of goods & services did not change much. The flood of money raised suddenly the demand for scarce goods & services and caused a jump of the price level.

Elaborated studies by Milton Friedman, Karl Brunner, Allan Meltzer and many other economists (known as Monetarists) confirmed Copernicus & the quantity theory of money. They described in the 1960s elaborately how and why the inflation rate follows the growth rate of money with a time lag (causal connection).



 ( source)

Fortunately the money flood ended already in 2022 and the money supply shrank for a while. Since October 2023 the money volume is growing again, but only moderately.