This phrase is used during day to day life throughout school children. It may be used around the world but it is used as a a quilloquial slant, it originated in England due to unnecessary hatred of the country. It essentially means "Intolerant Asshole". Someone who is named this or is called this is usually being made fun of for their intolerance of other cultures.
Marmeduke Smarmy: Boy, I hate that country's food, etc, etc.
Kid:...U marmeduke smarmy, don't be so intolerance...asswipe.