Hiya again chatz,
"but I decided to rest as the awareness meaning I just observe it as if I am separated from that anxiety. "
Would you not say that if you are observing the anxiety then you are separate from it, rather than 'as if ' ? The benefit of observing your'self' and emotions like that is that it takes you out of them so that you're no longer caught up and reacting to them. You might find that while in that state you are able to ask yourself what the anxiety is about.

"Sorry, lots of thinking this morning....not a healthy sign for one who wants to walk by inspiration/unction/spontaneity/intuition. "
I still have days like that too, recognising it and using it as the impetus to practise more is the only way to go (I thinkimage)

"Then it occurs to me that we suffer pain because of our memory and without time there could be no memory."
Memories are of things that happen 'Now' though, and we remember them 'Now'. So where's the time?

"and since as humans we are always attached to something none of which lasts forever because of the law of impermanence, we suffer much."
Then isn't breaking those attachments the only answer?

When you observe yourself, you break that attachment to 'my anxiety' and 'my emotions' and are able to view them in a detached manner.image