This paper investigates the relationship between subsystems and time in a closed nonrelativistic system of interacting bosons and fermions. It is possible to write any state vector in such a system as an unentangled tensor product of subsystem vectors, and to do so in infinitely many ways. This requires the superposition of different numbers of particles, but the theory can describe in full the equivalence relation that leads to a particle-number superselection rule in conventionally defined subsystems. Time is defined as a functional of subsystem changes, thus eliminating the need for any reference to an external time variable. The dynamics of the unentangled subsystem decomposition is derived from a variational principle of dynamical stability, which requires the decomposition to change as little as possible in any given infinitesimal time interval, subject to the constraint that the state of the total system satisfy the Schrödinger equation. The resulting subsystem dynamics is deterministic. This determinism is regarded as a conceptual tool that observers can use to make inferences about the outside world, not as a law of nature. The experiences of each observer define some properties of that observer's subsystem during an infinitesimal interval of time (i.e., the present moment); everything else must be inferred from this information. The overall structure of the theory has some features in common with quantum Bayesianism, the Everett interpretation, and dynamical reduction models, but it differs significantly from all of these. The theory of information described here is largely qualitative, as the most important equations have not yet been solved. The quantitative level of agreement between theory and experiment thus remains an open question. CONTENTS 19 E. Dynamically stable subsystem changes 19 F. Model calculations and special cases 20 G. The number of subsystems is dynamically essential 20 VII. Reference frames and superselection rules 20 A. Lack of phase reference 21 B. Equivalence classes of subsystem decompositions 21 C. Distance between phase orbits 21 D. Time functional for phase orbits 22 E. Dynamical stability of phase orbits 23 VIII. Subsystem permutations 23 A. Influence of permutations on dynamics 23 B. Subsystem ordering in orthodox quantum mechanics 24 C. Significance of a univalence superselection rule 24 IX. A bare-bones theory of information 24 A. Bayesian inference in the present moment 24 B. Mathematical backbone for inferences 26 C. How many subsystems? 27 D. Strong dynamical stability 28 E. The rest of the skeleton: Complementarity and "phenomenon" 29