Everything is a-ok. Its all good.
Originated by post WW II US Sailors on
liberty in Yokosuka, Japan. The strip right outside the main gate to the US Naval
Base was called (and still is) Honcho Dori (means
book district street in Japanese). Times were wild and there was no better sailor port in the world at the time. This was bastardized to Honky Dory by the sailors and it came to mean if you came from Honky Dory then everything had to be good or 'honky dory'.
a: Do you still have piles in your
ass?
b. No, I quit drinking that
Budweiser piss and now everything is honky dory.