I'm not sure if "it" refers to the American flag. And I thought "drifting in the breeze" refers to the yellow flag. Thanks in advanceOn the flagpole, a slight afternoon breeze out of the southeast snapped the tattered American flag to life. Drifting in the breeze below it, a yellow flag with a black stripe and the black silhouette of a horse's head waved gently.
The Old Man and the Wasteland By Nick Cole