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The majority of this verse—from this line to the third to last line—is sung to the to the tune of the 1857 classic, “Jingle Bells.”

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This section is done in the style of one of Moore’s standup routines, which were often based on old toasts, or rhyming stories. See here for a comprehensive website about toasts and the roots of rap.

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This tell-the-kids-a-bedtime-story conceit is an homage to the opening of Slick Rick’s classic song “Children’s Story”

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Dolemite was a character (a wordy, funny pimp) created by comedian Rudy Ray Moore. Moore used the character in his standup act and several movies, most famously 1975’s Dolemite

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Dana liked Kangol hats so much that his crew was called The Kangol Crew. That crew featured Slick Rick, another British-voiced emcee. Unlike Dane, however, for whom the accent was a put-on, Rick is actually from England. The two old friends, below:

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Dana would shout out his Ballys on such songs as “Cinderfella Dana Dane” and “Delancey Street”. See a short history of Bally shoes and their relationship to hip-hop here

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This section is an interpolation of the 1930’s Christmas standard “Santa Claus is Coming to Town”, written by John Frederick Coots and Haven Gillespie

There have been many versions of this song over the years, but the greatest of them all was (obviously) done by The Boss:

http://www.youtube.com/watch?v=Khpk9274gMg&feature=related

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Dana is presumably bumping into the Biblical Magi, or three wise men. Quoth Wikipedia:

[They] were a group of distinguished foreigners who visited Jesus after his birth, bearing gifts of gold, frankincense and myrrh. They are regular figures in traditional accounts of the nativity celebrations of Christmas and are an important part of the Christian tradition

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That would be the “little drummer boy” from the famed 1941 Christmas song

http://www.youtube.com/watch?v=pD2HGt73wCc

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