Lyric discussion by BionicVaporBoy 

Cover art for Golem II: The Bionic Vapour Boy lyrics by Mr. Bungle

The way I see it, the Golem seems to evolve throughout the course of the song. (Paper -> Puppet -> Vapour) and his description evolves the same way. He gets stronger, more secretive (master of shape-shifting), and more controlling as he advances to the point of scaring the people he was created to protect. I see this as a commentary on the growth of government.

My Interpretation