Holger, discoursing about our world, is asked whether the Red lord did not serve Chaos as much as the Nazi chief. He replies that the Red served Chaos but less than the Nazi and adds:
"'Things aren't always as black-and-white in that world as they are here.'" (p. 49)
In other words, that world is real whereas this one is mythical. There is some metafiction here: when a fictional text covertly acknowledges its own fictional status.
In Arnold Schwarzenneger's Last Action Hero, the characters travel to an Earth where:
the actor, Arnold Scwarzenneger, and his wife are attending a film premiere;
a villain learns to his delight that this is a world where the bad guys can win.
Imagine living in a world where, as a cop, you did not need to worry even when a gangster pointed a gun at you and began to squeeze the trigger because your faithful sidekick could always be relied upon to creep up behind the gangster and knock him out just in the nick of time. Holger's Carolingian universe is one where there is only one clear-cut cosmic conflict between Good and Evil, in this case called Law and Chaos, and, where, when a single hero wields his magic sword, he singlehandedly routs the hosts of Chaos which do not even need to be described. Their foregone defeat occurs off-stage.