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I lived there for several years and the prevailing notion among the locals seems to be status.

Then again part of being a true citizen of Bologna is to have incorrect information on some of the landmarks there.

Is the origin of using the word, baloney, to imply a statement is untruthful?

According to some citizen of Bologna: Yes.

I expect it comes from reactions to earlier attempts to pass US-made sausages for actual mortadella (aka ”bologna"), as in "that's not Bologna, that's <anglicized distortion of the name>!", which was then shortened to "that's baloney".

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