It is not meant to insult or put down a caucasian male. Only used to identify them racically in a conversation with people of different nationality
Friend: Oh fo' real
NON DEROGATORY: "Yo Slim! You know your my favorite white boy, right?"
Clarence: Fuck off nigger! Back of the bus!
J-Dawg: Yo imma cawl tha 5-0 on this muthafuckin craka's ass.