Mr. Save-the-World here is a tragically misguided, undereducated young man who’s listened to a Howard Zinn clip and wants to tell us what’s wrong with America. Sage is commenting here that hippies shoot themselves in the foot by being stereotypes of themselves, and not educating themselves to say anything beyond boilerplate, bumper-sticker slogans. They’re obvious, and preach to their usual choir while alienating their usual detractors. Sage feels people won’t listen to him because morons like Mr. S-t-W are shanghaing his message and bastardizing it into something it’s not. As Sage says as Non-Prophets, “I ain’t a hippie, bitch.”
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Danny knows that his “friends” in the drug industry will rat him out, or more generally, that there are men waiting who wouldn’t hesitate to murk him. In gun lingo, “the hammer is the mechanism that strikes the firing pin, which ignites the primer charge and the propellant and sends the bullet downrange.” Basically what you cock back before busting a cap.