It’s a form of passive aggressive racism. It means people will speak in a way or present themselves in a way that other racists will know is racism and often the minority being discriminated or talked about will know. But to the lay person it can be defended as construed or taken out of context and therefore not racist.
A good example of this is the key and peele skit “country song” there’s a part where key is singing and he says something like “don’t let her near the homies on the wrong side of town” and when peele tells him it’s racist he says no its not homies can be any race, white, Mexican, black, whatever. But given the context it’s obvious he’s talking about black people.
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