Lyric discussion by Jacksoon 

I think the 2nd verse is actually

"All the kids have always known that the emperor wears no clothes but they bow down to him anyway it's better than being alone"

No clothes rather than new clothes, as I think its a pretty blatant reference to the fable of the emperors new clothes, so i guess it could be new or no, but it really sounds like 'no'

I agree - sounds like it could go either way but from the context of the line after "but they bow down to him anyway" suggest that it is 'no' and not 'new.

actually this is definately the case - you can hear him better live youtube.com/watch#!

Agreed. "No Clothes" rather than new clothes makes more sense especially with the lines that follow. Personally, I think this might be a political statement about how sometimes people want to believe in something that's wrong, simply because they don't want to be alone. People want to be part of something bigger and often ignore the truth for the sake of belonging.

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