Abstract: The present invention involves a system for processing and acting on information comprising a processor and associated storage with a plurality of knowledge units. Each knowledge unit includes at least one item of data or a sequence of further knowledge units. An observation software module obtains experiential data from external events and stores experiential data in a Universe of Information Units. An operator software module acts on information units in a plurality of operations including at least one of: conditional association, causal relationship, assignment of a value, editing operation, self-observation, shock initiation, shock resistance, threshold determination, and generalization. A dynamic engine software module coordinates interaction of the observation and operator software modules and modifies contents of the knowledge units. An energy software module directs activation of at least one knowledge unit. A goal software module applies rules for determining actions of the dynamic engine module.