To spin a yarn means to tell a tale. This comes from Mother Goose, as she sat spinning her yarn while she told her stories to the little kiddies.
In French folklore, (the part without the Germans), Mother Goose was always depicted as being surrounded by kids. But Mother Goose was originally associated with stories such as Goldilocks and the Three Bears.
Some have said that Mother Goose was really the mother of King Charlemagne, around the late 700s. Apparently, she was known as Queen Goosefoot because of the size of her foot. Can you say Peggy Hill?