walking said:
I think I understand what you are saying now. Basically, a ball can still have PE even if our system only consists of the ball, as long as we take into account the Earth as an external field. If we don't do this however, then the ball can only have KE. So if I am correct, the upshot is that PE can come from external conservative forces as well?
(But then what did Mister T mean when he said "yes" to my question:
"I know that potential energy only exists for conservative forces, but is it true that these forces also have to be internal to the system for potential energy to make sense? ")
I am not saying that Tipler and Mosca are wrong, but would I be justified in saying that the way they worded it was very confusing? I mean they didn't mention that by letting the ball be our system, we are excluding everything else in the universe (like you said) and simply considering it as a ball in an empty universe.
Mabye I am still misunderstanding.
If you take the ball and the Earth as your system. There's not simply a potential, but an interaction potential, i.e., a function containing both the position vector of the ball and the position vector of the earth. The fundamental symmetries of Galilean space-time (homogeneity of space, homogeneity of time, isotropy of space, Galilei-boost invariance) dictate that the total energy (or even more importantly the Hamiltonian) of the two-body system must be of the form
$$H(\vec{p}_1,\vec{p}_2,\vec{x}_1,\vec{x}_2)=\frac{\vec{p}_1^2}{2m_1} + \frac{\vec{p}_2^2}{2m_2} + V(|\vec{x}_1-\vec{x}_2|).$$
You cannot say that "there's only kinetic energy", but you also cannot say, there's "kinetic energy" and "potential energy" of each particle. You can only say, there's total energy consisting of the sum of the kinetic energies of the particles (each are indeed "single-particle observables") and the interaction potential (which is a "two-particle observable").
For an ##N##-particle system there are, in principle, a whole hierachy of "##k##-particle contributions" (with ##k \in \{1,2,\ldots,N \}##) contributions to the Hamiltonian. Fortunately in many cases you can truncate the hierarchy to 1- and 2-particle contributions, i.e., the single-particle kinetic energies + the sum over pair-potentials over all possible particle-pairs.
To really understand particle dynamics, you have to learn analytical mechanics, i.e., mechanics in terms of the Hamilton principle of least action. That's well worth the effort since all fundamental physics rests on this principle, and a good understanding of the most simple case, i.e., Newtonian classical mechanics, is a very good fundament for all further studies of physics.