You don't need translations where you are going here...
No, the language isn't real, it's a really racist imitation of german.
Ich habe keine unterhosen!
It's a satire of those german tales that try to send some sort of moral legends, they're f-ed up.
This is a really old stop motion animation, don't worry, I'm retired from stop motion forever, you can see why ghahahaha.
This was done with the help of a guy named Gustavo, the poor soul...
Don't worry, this is an old short, I'm sticking to frame by frame, forever.