It is well known that the Wheel in the Sky keeps on turning. This means that outside forces are unable to slow or stop the rotation of the Wheel - thus implying the Wheel to have infinite angular momentum.
Infinite angular momentum leaves us with a couple options. Either the Wheel has infinite mass, or is turning infinitely quickly (or both, which is definitely sufficient but not necessary). Consider the scenario where the Wheel has infinite mass: the Wheel would not be a Wheel, but rather a black hole, destroying everything. This is clearly not the case. This means the Wheel must be spinning infinitely quickly.
One of the key elements to a big, smokey burnout is wheel speed. The faster the tire spins against the ground, the more friction there is, and thus more heat, and more smoke.
Ergo, the Wheel in the Sky does sweet burnouts.