The Lord is endowed with unlimited potencies (parasya saktir vividhaiva sruyate), which are summarized as three, namely external, internal and marginal. The external potency manifests this material world, the internal potency manifests the spiritual world, and the marginal potency manifests the living entities, who are mixtures of internal and external. The living entity, being part and parcel of Parabrahman, is actually internal potency, but because of being in contact with the material energy, he is an emanation of material and spiritual energies. The Supreme Personality of Godhead is above the material energy and is engaged in spiritual pastimes. The material energy is only an external manifestation of His pastimes.