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@SamRoss It may be worth mentioning as a side item that it is very important that the magnetic currents involve no charge transfer. The reason is this: For a transformer, because there is a changing magnetic flux, (originating from the currents in the primary coils and enhanced by the iron/magnetic surface currents), that passes through the transformer, (it cycles at 60 Hz), the result is an EMF, (from Faraday's law), that creates real (eddy) currents in the iron that generate reverse magnetic fields that would almost completely negate the transformer's operation. The solution to block these eddy currents is simple: the transformer has layers of iron that are separated by plastic laminations. The eddy currents can be almost completely blocked, while the magnetic surface currents continue to persist in a computational sense=the magnetic surface currents are virtually unaffected by the laminations. The tranformer operates in a most ideal fashion with the laminations.
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