The three-dimensional equations of ideal hydrodynamics and ideal MHD a
re expanded in eigenfunctions of the curl, and the resulting basic int
eractions of these nonlinear systems are analysed. As the equations ar
e invariant under time and amplitude reversal, a criterion defining th
e arrow of time is introduced. A new parameter, the center of energy,
serves to characterize a basic interaction. In the 3D Euler equations
we find four different interactions and their mirror images, two of wh
ich can transport energy to smaller wavenumbers. This can lead to the
appearance of structures in turbulent flow and throws doubt on a deriv
ation of Kolmogorov's law based on a cascading of energy to higher wav
enumbers. In the corresponding two-dimensional equations, which are is
omorphic to the guiding centre model in plasma physics, only one inter
action exists, with a strong inverse cascade, which can lead to accumu
lation of energy in the spatially largest accessible modes. In MHD the
ory it is possible to separate magnetic from kinetic interactions. The
former give again four basic interactions, two being regular and two
being inverse cascades. One of these is quite strong, and can lead to
the MHD dynamo effect. Kinetic energy can be transferred into magnetic
energy. The dynamo effect is is accompanied by alignment of velocity
and magnetic fields. We show that stationary velocity fields may lead
to exponentially growing magnetic fields and we give an explicit crite
rion for this instability.