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This is a completely rewritten version of the talk I gave at the Philosophyof Cosmology conference in Tenerife, September 2014, which incorporateselements of my IFT Madrid Anthropics Conference talk. The original was tootechnical. The current version uses intuitive notions from black hole physicsto explain the model of inflationary cosmology based on the Holographic SpaceTime formalism. The reason that the initial state of the universe had lowentropy is that more generic states have no localized excitations, since inHST, localized excitations are defined by constraints on the fundamentalvariables. The only way to obtain a radiation dominated era, is for eachtime-like geodesic to see an almost uniform gas of small black holes as itshorizon expands, such that the holes evaporate into radiation before theycollide and coalesce. Comparing the time slicing that follows causal diamondsalong a trajectory, with the global FRW slicing, one sees that systems outsidethe horizon had to undergo inflation, with a number of e-folds fixed by thepresent and inflationary cosmological constants, and the black hole numberdensity on FRW slices just after inflation ends. These parameters alsodetermine the size of scalar and tensor metric perturbations and the reheattemperature of the universe. I sketch a class of explicit finite quantummechanical models of cosmology, which have these properties. Physicistsinterested in the details of those models should consult a recentpaper\cite{holoinflation3}.

Holographic Inflation and the Low Entropy of the Early Universe