Though it isn't confirmed as that saying is pretty old it's commonly thought the rumor began with a John Heywood proverb in 1546.

""The moon is made of a greene cheese,"

The proverb was meant to point out that a naive person will believe anything. It's a play on words "greene" also means new or unripe.

Turns out the world is rather naive after all though, there are still people today that argue the moon is made of cheese.
Source(s):
http://www.straightdope.com/columns/read/1340/how-did-the-moon-green-cheese...

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