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'Goats on Fire!' is the cry of the deranged soul, the vapours of the opium s/he's smoking. In the world of the deluded, there is an entertainingly wide spectrum of crazy. 'Goats on Fire!' used as an adjective ('S/he is utterly Goats on Fire!') identifies those in the manic street preacher/may benefit from medication category of the insane. In Poeish usage, in a parody word salad context, 'Goats on Fire!' is employed to identify deliberately that the parody of fervour at hand has been written by a believer of said quality.
The phrase may have been coined by Brad Neely.