An analysis using classical stochastic processes is used to construct a
consistent system of quantum counterfactual reasoning. When applied to a
counterfactual version of Hardy's paradox, it shows that the probabilistic
character of quantum reasoning together with the ``one framework'' rule
prevents a logical contradiction, and there is no evidence for any mysterious
nonlocal influences. Counterfactual reasoning can support a realistic
interpretation of standard quantum theory (measurements reveal what is actually
there) under appropriate circumstances.Comment: Minor modifications to make it agree with published version. Latex 8
pages, 2 figure
