2:40 And the fourth kingdom shall be strong as iron: forasmuch as iron breaketh in pieces and subdueth all [things]: and as iron that breaketh all these, shall it break in pieces and bruise.
2:41 And whereas thou sawest the feet and toes, part of potters’ clay, and part of iron, the kingdom shall be divided; but there shall be in it of the strength of the iron, forasmuch as thou sawest the iron mixed with miry clay.
2:42 And [as] the toes of the feet [were] part of iron, and part of clay, [so] the kingdom shall be partly strong, and partly broken.
2:43 And whereas thou sawest iron mixed with miry clay, they shall mingle themselves with the seed of men: but they shall not cleave one to another, even as iron is not mixed with clay.
The iron is connected to the “they” in vs.43 because “they” represents pagan Rome which is also represented by iron. The clay is connected to the “seed” because clay represents truth (Isa. 64:8; Jer.18:4, 6) and seed represents Christ (Gal.3:16). The iron mixed with miry clay; but iron is not able to be mixed with clay. This basically states that truth and error can’t be mixed.
Toes
Clay represents Christianity (Isa.64:8, Jer.18:4, 6).
So the mixture of clay and iron in the toes is the compromise between paganism and Christianity and this resulted in the beginning of the papacy. This is represented in the feet but in the toes it is a different variation of idolatry that is compromised with Christianity. This idolatry is a devotion to the things of the world. So this mixing of Christianity and the world results in apostate Protentism. The mixing of iron and clay leads to three problems: first it causes apostasy in church, which leads to the mixing of state and church which then leads to persecution and intolerance.
Both the ten toes that came out of the feet and the ten horns that came out of the leopard like beast in Rev.13, 17 represents pagan Rome. The reason for the toes and horns in Revelation 13, 17 being related is that they both come out of the papacy. Rev 13, 17 give more details about the toes of Dan. 2. The 10 horns in Dan. 7 represent the breaking of pagan Rome so therefore if we are living in the toes, this chapter cannot be connected to the toes and the other horns. We are living in the toes now (1T pg, 360).