There is nothing I wouldn't do for a fellow Mudcatter ... well, not much anyway! I have no further information on the song, but then the story is fairly obvious.

THE TAOIST TALE
(Tucker Zimmerman)
As sung by Tucker Zimmerman on "Word Games" (2012)

Once upon a time, a farmer sent his son
With a horse to graze upon the mountainside.
He fell asleep; when he awoke, the horse was gone.
Came back without it; the neighbours said:
"Oh, what bad luck!"
The farmer said:
"How do you know?" (2x)

The very next day, the farmer sent his son
Back into the mountains to seek the runaway.
He found the horse and seven other wild ones.
He brought them home and the neighbours said:
"Oh, what good luck!"
The farmer said:
"How do you know?" (2x)

On the very next day, the farmer sent his son
To the wild horses that needed to be tamed.
First one he climbed on, it threw him down to the ground.
It broke his arm; the neighbours said:
"Oh, what bad luck!"
The farmer said:
"How do you know?" (2x)

The very next day, a war was declared,
And the army men came through the countryside
Looking for soldiers, but they couldn't take anyone
With a broken arm; the neighbours said:
"Oh, what good luck!"
The farmer said:
"How do you know?" (2x)
"Oh, what good luck!"
The farmer said:
"How do you know?"

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https://www.youtube.com/watch?v=Ne1S_EOMcIU