Over on Peoplenomics this morning, subscribers get Book Two of The Ancient Children, a look ahead at The Good War, and another novel concept that fell out of the economics work almost by accident: Friction Pricing. The premise is simple enough to sound dangerous—if AI keeps driving the informational cost of goods and services toward zero, what happens to the rest of the price structure built around patents, legal work, marketing, finance, research, and other forms of informational rent?
That leads to a larger question: once the “thinking” component of price collapses, what is left? Resources, labor, transportation, packaging, energy, and the stubbornly physical parts of civilization that cannot be copied at near-zero marginal cost. That is where the economic story gets interesting, because information may deflate first while food, housing, power, and other physical necessities do not.
After that, this morning’s PN turns back to the real world: floods, fires, war risk, Fed policy, and the latest ChartPack. The market models still lean higher near term, but from an increasingly mature and risk-sensitive position—exactly the kind of setup where one bad data print can turn “holiday optimism” into something much less festive.
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