The line between manufacture and observation is very thin, as you well realize by now—for indeed manufacture is the operative, global term while observation is the placative, while-for-innocence term.
For in one sense we somehow maintain our innocence in multiple situations if we believe we did not participate, but only observed.
The observer in you as a nonparticipant is at the crux of something very catalytic in making the manufactured observed. My point: to observe, you must manufacture, and to manufacture, you must observe.
Some hold the observing consciousness in us as spirit, or the Higher Self. But I say this observer is not always a function of higher consciousness. For you watch many circumstances transpire in life. Watching is one kind of observation, but it is not always made by higher consciousness.
To observe from the I Am consciousness, one must extract his or her very nature out of the set at hand. You are no longer you, nor your name, nor your shoe size. You are no longer in this body, in this plane, in this time or space. To truly observe as the I Am, the tranquil one, you stand outside all sets looking on.
The events, the subset of life you watch, you then watch, no longer contains you. For you wait just outside what is observed.