Basically it means to have racist feelings to other ethnicities but not show it to ANYONE at all. This may lead to arguments with 2 people of a different race, but not necessarily about racism, although that is the reason why they´re arguing

Two forms of inner-racism are

A. To stereotype someone. YES THIS IS INNER-RACISM.

B. To be afraid of a specific ethnic group.
A.
Tj (thinking to himself): I bet this white boy is gonna say something corny
Tj: Hey Bill, what´s up?
Bill: The sky?
Tj: Uh huh...
Tj (thinking to himself): Of course
Bill: Are you hungry?
Tj: Yeah bro
Bill (thinking to himself): I bet he wants some KFC
Bill: How about some KFC?

B.
Bob arrives in Puerto Rico via plane.
Bob looks at the Puerto Rican natives.
Bob (thinking to himself): These people need to be "Americanized". These traditions are stupid
Juan, a Puerto Rican, watches Bob uneasily
Juan (thinking to himself): Look at that fucking American. Imperialist bastard!

Coincidently, Juan and Bob are working on a project together. All is friendly on the outside, but in the inside, they just fucking hate eachother.

Let´s be honest everyone has inner-racism
by I´mYoGrandpaSoListenUp February 24, 2012
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