Neither the flag nor the use thereof are particularly racist. It can be inferred, but the use of the flag seems rather more like bad taste and nationalism gone a little too far than actual racism.
Quote Originally Posted by English Assassin
As for the flag, no it is not racist and the more non racists use it the less it will seem to be racist.
Interesting point. More use of flags should strengthen the national identity; it's not the waving of the flag that should offend, but the often extreme nationalistic thoughts behind it. Being proud of your country should not be something to be ashamed of, but often it is seen as such.