This is from the Mojave Desert.1
"There must be some way outta here," said the joker to the thief,
"There's too much confusion, I can't get no relief.
Businessmen, they drink my wine, plowmen dig my earth,
None of them along the line know what any of it's worth."
"No reason to get excited," the thief, he kindly spoke,
"There are many here among us who feel that life is but a joke,
But you and I, we've been through that and this is not our fate,
So let us not talk falsely now, the hour's getting late."
All along the watchtower princes kept the view
While all the women came and went, barefoot servants too.
Outside in the distance a wildcat did growl,
Two riders were approaching, the wind began to howl.
1
Just before making this comment, Dylan remarks, "Alright, that's straight from Chicago", referring to the previous song, "Simple Twist of Fate", which contrasts with the comment made here.
2
Actually occurs at the beginning of the next track on the album, "I Want You".