It is argued that the so-called holographic principle will obstruct attempts to produce physically realistic models for the unification of general relativity (GR) with quantum mechanics, unless determinism in the latter is restored. The notion of time in GR is so different from the usual one in elementary particle physics that we believe that certain versions of hidden-variable theories can - and must - be revived. A completely natural procedure is proposed, in which the dissipation of information plays an essential role. Unlike earlier attempts, it allows us to use strictly continuous and differentiable classical field theories as a starting point (although discrete variables, leading to fermionic degrees of freedom, are also welcome), and we show how an effective Hilbert space of quantum states emerges naturally when one attempts to describe the solutions statistically. Our theory removes some of the mysteries of the holographic principle; apparently non-local features are to be expected when the quantum degrees of freedom of the world are projected onto a lower-dimensional black hole horizon. Various examples and models illustrate the points we wish to make, notably a model showing that massless, non-interacting neutrinos are deterministic.