I think that this song is actually about the French Revolution. White is the color of the people (as well as virtue and whatnot) in France and came about during the French Revolution. The red scarf part could refer to the red ribbons that people would wear to commemorate those who died in the guillotine. Micheal (this is a stretch) could be the guillotine falling to kill King Louis xvi of France in January, which would turn the snow red with blood.
It's possible, but that's my guess.