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The word "loony" comes from the retarded superstition that staring at the moon will make you batshit crazy. It can mean one of 2 things:
1)Someone who disagrees with you, and who you do not wish to speak to or listen to. This term can be used by nancy boys and douchebags such as fundies, generally to refer to lib'rals.
2)Someone who is demonstrably delusional or psychotic. Often these people will disguise their psychosis as a political ideology, generally blaming various groups of scapegoats for all their problems based on negligible or nonexistent evidence.
Famous current loonies include: Ann Coulter, John Ashcroft, Rush Limbaugh, Jerry Falwell, Pat Robertson, Osama bin Laden, and all other fundies, Nazis, and people involved with (or seriously believing the rhetoric of) the Church of Voodoo Pharmacology.

The most common relatively sane person to be an alleged loony is Michael Moore, who contrary to Republican beliefs is not actually insane, but simply obese and incoherent.
loonies by jazzriff October 15, 2005
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Liberal Loonies 

An excuse conservatives use because they think that their way is the only way and seem not to realize that in fact, Conservative Loonies exist in droves as well.

This term is one of the many terms that is used in the Conservative Hate Culture.
Those Liberal Loonies! Supporting free choice and promoting equality and peace is ludicrous!
Liberal Loonies by Bob_the_Patriot September 30, 2007

Liberal Loonies 

An excuse conservatives use because they think that their way is the only way and seem not to realize that in fact, Conservative Loonies exist in droves as well.
Those Liberal Loonies! Supporting free choice and promoting equality and peace is ludicrous!
Liberal Loonies by redhed311 April 21, 2005

Three Loonies 

A small, midget male who is also a pedophile. He is called "three loonies" because that is what he uses to entice his prey into his van (rather than candy)
Come straight home after school, Billy. I don't want you to get abducted by three loonies.
Three Loonies by midget man 69 December 7, 2011

Loonisphere 

Gateway Pundit is one of the leading lights of the Loonisphere.
Loonisphere by cindychesterton July 11, 2009
Individual cigarettes often sold at convenience stores owned and operated by men of arab discent
Hey, muhammed, man, how much yo loosies?
loosies by K.Raw May 24, 2004
A Canadian dollar coin, so named, because it has the image of a wild loon on its face, and Queen Elizabeth on the other, it's hard to tell which is which.
Shoot me a loonie for a pop, I'm thirsty.
loonie by Canadian prick December 22, 2003