This article will address issue of European racism in the colonial era, specifically Anglo-Saxon racist ideology. I will be looking at the evolution of racism by Europeans, and how they were developed and implemented across their colonies in order to secure the economic and geopolitical bounty of “empire”. I will also focus on the Anglo-Saxon influence and race ideology in the foundation and running of the United States of America, and how racism was institutionalized in the country. Finally, I will touch upon how racial theories and practices abruptly changed after the wake of the Holocaust, which, for all its evil, was not unlike much of the colonial power’s practices abroad. Ultimately, the goal of this article is to really show how race, similar to religion, is an institution based on fiction, solely created to exacerbate exploitation and inequality.