How does Death relate Max’s dream to the well recognized joke “There’s a Jew & a German standing in a basement, right?” Do you find the reference powerful? Why?

Death's remarks about the joke seems to offer a quality of solidarity in the story. Even though it seems twisted and downright terrible that he refers to jokes, in this context, it seems like a good way to temper the fear of the overall situation. This is an invaluable characteristic of Death.