You have it about right: it is an inverted sentence. It seems ambiguous to me whether "Now" should be included within the "object " (whether it modifies "is" or "goes"), and I also quibble whether "goes" is truly transitive, and whether we should truly call the first part a "direct object".
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AnonymousNow it’s a phenomenon, growing rapidly, cutting across old definitions of left and right, goes the argument.~ Now the argument goes (") it's a phenomenon ... left and right (").
CalifJim It may be the only case in which a direct object can be an entire independent clause without quotation marks.If you believe that it is a direct object.
CalifJimLet me know if you know of other cases like it.I wonder whether the lyrics of the "The Girl From Ipanema" song has the same construction:
AnonymousI think that in both cases, i.e., goes the argument and goes - ah, the verb "goes" is used in the way the verb "says" is used.Right. And it occurs to me now that this usage is especially common when explaining the sounds that animals make (and especially commonly criticized by English teachers).