This is something some European
hipster came up with thinking he was clever. Basically, this
hipster saw that every day
people get into arguments because they recognize that both "sides" of the argument are right and wrong in different ways. He realized this during an argument between two hipsters about who was a more "legit"
hipster. This could be summed up with the problem that people can't decide whether when they are disagreeing or agreeing: they oscillate between the idea of "neither" and "both." Thus, schmöthe. It is meant to represent the fact that what each side is basically saying is it neither-ish and both-ish. We use the root of "both" because "both" is more conciliatory and helps hipsters get along.
Professor: Is the classical model of economics or the Keynesian model better?
Student 1: Classical because it explains the long run.
Student 2: Keynesian because it explains the short run.
Student 3: Understanding both is better.
Student 4: It's schmöthe!
Restaurant goer 1: Lemme get a steak
Waiter: Aight
Restaurant goer 2: Dawg, don't get a steak get some fish.
Restaurant goer 1: I want a steak because I need some protein.
Restaurant goer 2: Oh true, I just want some Omegas tonight.
Waiter: Chill out yo, you guys are schmöthe right.
Bro: Is occupy a political party?
Hippy: It's schmöthe,
man.
Bro: Wtf?
Hipster: Oh shit! You are right.
