When someone says something about someone of another race that's just asking for you to make a racist joke, but either desire to be politically correct or just a lack of energy prevents you from doing so.
Originated among modern student-age people in an increasingly politically correct society who still want to let it be known they have the ability to make a a racist joke.
"Yeah I know, it'll probably help later in life"
"Dang, Hung Lo's girlfriend dumped him"
"Yeah, he's a good guy, I wonder what she wasn't happy with"