I had that same question, McGrath--and it was reinforced by a feeling that I'd had that our poster didn't know anything about music--I did a bit of digging and found that a lot of the commentary posted here was really lifted from a thread that is about the roots of psychedelic music Last FM Psychedelic Music
The "Folding Chord Construction" comment is there, in a quote attributed to Roger McGuinn--I usually understand everything Roger is talking about, and I suspected that it was a misprint or something like that--I did a search and found an interview with him here McGuinn Interview, Modern Guitars Magazine, 2.15.06 Here is what he really said:

"The Beatles came out about that time and I got really jazzed by the Beatles. I loved what they were doing and they were doing a lot of passing chords. Like instead of just going like G, C, D, they'd go G, Bm, Em, C, Am, to D. So, the minor and passing chords I liked and, I thought these are really folk music chord changes. I kind of got it from what they were doing, I guess because they'd been a skiffle band."

So it was not "folding chord construction" it was "Folk music changes". My guess is that the English language text was translated to another language, and then that was translated back to English--