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you don't know your ass from a hole in the ground 

Figure of meaning that someone doesn't know what they're doing.
You don't know your ass from a hole in the ground.

ass from a hole in the ground

He doesn't know his ass from a hole in the ground.

you don't know your ass from a hole in the ground 

"You don't know your ass from a hole in the ground." Illustrate with a pen and paper drawing a circle and a cracked circle. Now ask which is your ass and which is the hole in the ground. Subject points to cracked circle and you mock while pointing to their real derriere.
After listening to untruthful gibberish, you say to person, "you don't know your ass from a hole in the ground."

Hole in the ground 

It's a nice way of saying you're a hoe>
Stop being a hole in the ground .

Difference between his asshole and a hole in the ground. 

A metaphor relating to a stupid, ignorance, and educated person that can not distinguish similarities between items or objects.
George is so stupid, he don't know the difference between his asshole and a hole in the ground.

hole in the ground 

a town (esp. in prairie land) that has about as much going for it as an actual hole in the ground;
a boring, isolated, or otherwise unpleasant place or town;

an unremarkable, rural community.

cf. "shit hole," "backwater," "middle of bumfuck nowhere"
"Why would you live in Watrous, Saskatchewan? Place is a hole in the ground."

"I'm not trying to pick on Watrous, Saskatchewan, but it's a real hole in the ground."