Well this is my interpretation
When he says "these walls are paper thin and everyone heres every little sound" I think he's talking about life and no mater how you try to keep a secret you can't, someone will hear about it.
The line "It's been agreed, the whole world stinks
so no one's taking showers anymore" Sounds like he's talking about self fullfilling prophecies. If everyone agrees the whole world stinks the world is gonna stink.
When he says "They're shakin hands, they're shakin in their shoes Oh Lord, don't shake me down," it sounds like he's talkin about people who give fake smiles to you and in the end finally just shake you down to prove youve been a worse person then they have.
Well it's a long shot, but no matter what this song is one of the best Modest Mouse songs.
