It's both simpler than you think and not as intuitive as you'd think. It's one of those things that, after you're told, it makes more sense. Especially since the guy does directly say the full thing at one point and it's a reference to...the X-Files, I think? Though is also just a general reference to a common saying about aliens. Here it is:While really like that the game is now more linear and less of a time waster, the dev still finds a way to make it more difficult than it needs to be. I can't figure out the password, my best bets are wine, goblin ale, or goblins, didn't work.
goblinsarerealman