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I think the girl you heard has no idea of what the word "racist" actually means, but likes to throw it around as an all-purpose insult.

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That being said, I think Princess is a stupid name to give somebody. It tries so hard to project status and class that it ends up projecting the exact opposite effect. People with actual class or status do not usually name their kids stuff like Princess or Special or Sir-Honesty or Miraculous Diamond.