Lyric discussion by TheCatalystPoer 

Cover art for Calamity Song lyrics by Decemberists, The

Here's my take on the song:

The Narrator is telling his friend about a dream he had that they had been part of, in which the following situation was the case:

Following a large earthquake that takes out California, the united states is plunged into a post-apocalyptic state of being, where people form tribes that operate independent of the whole (like Andalusia and Panama).

During the chaos, the upper-crust Wall-street types (like Hetty Green) attempt to establish their dominance, but they can't manage to keep control in a world where their old ways no longer apply. That short lived empire fails and is swallowed up by the Earth(receded into loam). Now, the narrator and his friend are coming back to their former home to start a new society. In the end he's making suggestions as to how to go about just that.

My Interpretation

Also, the line "and all of that remains is the arms of an angel" I think is in the same spirit as Shelly's "Ozymandias" in where all that remained of that previous civilization were the two legs of the ruler's statue, in the midst of a vast wasteland.

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