Lyric discussion by ProfessorKnowItAll 

"Chasing the dragon" is slang for using heroin, hence the first verse talking about the "clinic". So the first two verses are about the dark side to a fast life, and the third line is reflecting back on those days.

Otto Dix was a German artist whose work varied over his life, but as the 'Daddies here are suggesting a '30s-'40s tableaux (when brown derbies and swing music were both in style) , his art at the time tended to be somewhat realistic, but often grotesque, with human features rendered oddly, giving their subjects a human-yet-inhuman appearance--nightmarish, in a way. The song might also be referencing a specific Dix work, too.

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