In the story, the film's protagonist Harry Haller is caught in the rip current of mid-life crisis. In a forlorn state he meets a few bohemian ppl: a drug-pushing musician, a prostitute (who he bangs) and a keut French lady who becomes his muse.
Actually I think he bangs all of them. Not sure.
Anyway, in this scene Haller has a trippy dream where he meets Goethe, the German writer/demi-god. They argue about modern versus Enlightenment intellectualism. They debate the relevance of Mozart. Goethe hops around, he teleports across the room, he shuffles.
He's an Acid Midget.
Honestly, when I watch this I can't tell if the actors are on acid, or if I am.