Abstract
The small algebra of loop functionals, defined by Rovelli and Smolin, on the Ashtekar phase space of general relativity is studied. Regarded as coordinates on the phase space, the loop functionals become degenerate at certain points. All the degenerate points are found and the corresponding degeneracy is discussed. The intersection of the set of degenerate points with the real slice of the constraint surface is shown to correspond precisely the Goldberg-Kerr solutions. The evolution of the holonomy group of Ashtekar's connection is examined, and the complexification of the holonomy group is shown to be preserved under it. Thus, an observable of the gravitational field is constructed.
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