When words such as gay and fag are used in a derogitory fashion, or to mean something is stupid. Often used by homosexuals themselves in an effort to 're-claim' such words.
Also, it could mean saying things that are so ridiculously stupid, that no one understands anything that you're talking about.
Luke Wilson as Joe on Idiocracy: "I need for you to be serious here, ok? I need help."
Justin Long as Dr. Lexus on Idiocracy: "There's that fag talk we talked about."