<P><EM>Conscious Action Theory</EM> provides a logical unification between the spirit and the material, by identifying reality as an event that processes personal experiences into explanatory memories, from which personal experiences are regenerated in a never-ending cycle of activity. Baer explores the idea that our personal feelings are undeniable facts that have been systematically excluded from the basic sciences, thereby leaving us with a schizophrenic division between objective materialism and spiritual idealism. </P><P></P><P>Cognitive Action Theory (CAT) achieves this unification by recognizing that the observer''s existence is the foundational premise underlying all scientific inquiry. It develops as an event-oriented physical theory in which the first-person observer is central. By analyzing the methods through which we human observers gain knowledge and create the belief systems within which our experiences are explained, we discover a fundamental truth: all systems are obse