Liar Liar Pants On Fire is a phrase that children like to scream at each other whenever they think the other is lying. They also like to scream it at adults who tell them stories about fairies. It is an overall stupid thing to say, since if your pants actually caught on fire when you lied, more politicians would be dead.
In my experience when I was growing up," Liar Liar Pants On Fire" refereed to the ass whipping you would get if your parents caught you lying.You felt like your pants were on fire afterwards
A Chant normally used by children to indicate they think someone is lying.
The full phrase is "Liar, liar, pants on fire. Hangin' on a telephone wire".
It is a paraphrase form an 1810 poem by William Blake titled "The Liar".