PI proposes to increase understanding of diamagnetism in non- uniform interacting electronic systems. The following problems will be addressed: 1) ground state properties of electrons in an external magnetic field; 2) possibility of instabilities leading, in the absence of a magnetic field, to a ground state with spontaneous orbital currents and broken time-reversal symmetry; 3) energetics of magnetic field-induced non-uniform collective states in three dimensional electron and electron-hole liquids. Method to be employed is current-density functional theory of inhomogeneous electronic systems in magnetic fields.