A derogatory term for caucasians. Exactly the same as Negro or Nigger, for a person of African descent. White people are only allowed to use it, just as black people are the only ones who can say 'Nigger.' It's only fair.
White Guy one: "Sup blanco, how was that movie with Ron Jeremy?"
White Guy two: "Fuck Ron Jeremy, that blanco's got the biggest dick out of all the blancos"