I've played this song so many times. Steely Dan's musical mix is truly impeccable but what really triggers me on this tune is what do they really mean by it. What was their state-of-mind when they wrote this down. If my hunch is right, man--they've seen them coming way before hand. Correct me if I'm wrong. Gaucho--in the dictionary refers to the native cowboys of the South American pampas, usually of mixed Spanish and Indian ancestry. Now look at the lyrics of the song-- wow there's the line unmistakably drawn.