The true variables in QED are the transverse photon components and Dir
ac's physical electron, constructed out of the fermionic field and the
longitudinal components of the photon. We calculate the propagators i
n terms of these variables to one loop and demonstrate their gauge inv
ariance. The physical electron propagator is shown not to suffer from
infrared divergences in any gauge. In general, all physical Green func
tions are gauge invariant and infrared-finite.