  We perform a canonical, reduced phase space quantisation of General
Relativity by Loop Quantum Gravity (LQG) methods. The explicit construction of
the reduced phase space is made possible by the combination of 1. the Brown --
Kuchar mechanism in the presence of pressure free dust fields which allows to
deparametrise the theory and 2. Rovelli's relational formalism in the extended
version developed by Dittrich to construct the algebra of gauge invariant
observables. Since the resulting algebra of observables is very simple, one can
quantise it using the methods of LQG. Basically, the kinematical Hilbert space
of non reduced LQG now becomes a physical Hilbert space and the kinematical
results of LQG such as discreteness of spectra of geometrical operators now
have physical meaning. The constraints have disappeared, however, the dynamics
of the observables is driven by a physical Hamiltonian which is related to the
Hamiltonian of the standard model (without dust) and which we quantise in this
paper.
