The belief that race accounts for differences in human character or ability and that a particular race is superior to others.
Discrimination or prejudice based on race.
Now, let's examine what Hussein said.
610 WIP host Angelo Cataldi asked Obama about his Tuesday morning speech on race at the National Constitution Center in which he referenced his own white grandmother and her prejudice. Obama told Cataldi that "The point I was making was not that my grandmother harbors any racial animosity, but that she is a typical white person. If she sees somebody on the street that she doesn't know (pause) there's a reaction in her that doesn't go away and it comes out in the wrong way."
So he is judging all white people based on his belief that they all fear blacks.
Re-read the definition.