  A large population of X-ray binaries (XRBs) was recently discovered within
the central parsec of the Galaxy by Hailey et al. While the presence of compact
objects on this scale due to radial mass segregation is, in itself,
unsurprising, the fraction of binaries would naively be expected to be small
because of how easily primordial binaries are dissociated in the dynamically
hot environment of the nuclear star cluster (NSC). We propose that the
formation of XRBs in the central parsec is dominated by the tidal capture of
stars by black holes (BHs) and neutron stars (NSs). We model the time-dependent
radial density profiles of stars and compact objects in the NSC with a
Fokker-Planck approach, using the present-day stellar population and rate of in
situ massive star (and thus compact object) formation as observational
constraints. Of the ~10,000-40,000 BHs that accumulate in the central parsec
over the age of the Galaxy, we predict that ~60 - 200 currently exist as
BH-XRBs formed from tidal capture, consistent with the population seen by
Hailey et al. A somewhat lower number of tidal capture NS-XRBs is also
predicted. We also use our observationally calibrated models for the NSC to
predict rates of other exotic dynamical processes, such as the tidal disruption
of stars by the central supermassive black hole (~0.0001 per year at z=0).
