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Haha, it's a send-up that comes via Spike Milligan, the same source that had already inspired Peter Sellers in 1963 in Dr Strangelove. Ringo had to stop him doing that on the balcony of Liverpool Town Hall in 1964, which you can just about see on the newsreel footage.
oh yes Spike and the Goons from another generation - think many didn't know that bit with John
For someone born during a German air raid, and who spent his early years playing in the rubble, the Nazi salute has different connotations. John is taking the piss out of Hitler and all those clips of news reels of Nazi`s saluting on balconies.