The eternal God created time! It is that simple. We live and die (as you said) in time. The mind of man cannot comprehend what God created. He said "Let there be light." The big Bang? Then He separated the night from the day. Time? People should look deeper into the scripture.
Dinesh D'Souza's book "What's So Great About Christianity" has what I believe a very good explanation of the creation story told in the Bible.
There are some very good posts on this thread and they all appear to capture a similar understanding of the universe.
Every atom, snowflake and dust particle in the universe is a separate and unique entity. Nothing truly disappears, everything morphs or is absorbed into another form.
God’s creation is one continuing, moving miracle.