Democrats have cried wolf too many times regarding racism, so nobody listens to them anymore (including me). An incredibly detailed piece (note: I didn't read the entire thing) suggesting the exact same thing. For someone who argues Trump is opening racist and bringing all this to the fore, it's a must read.
That said, in the story, the wolf comes to town. Has the wolf arrived? Perhaps. But I don't think the wolf is Trump. The wolf is inside all of us and the impulse to demonize the other. This applies to BLM and to high schoolers graffiting various anti-immigrant stuff. How do we combat this? Not by shutting down speech, not by opposing Bannon, not by calling everyone and anything racist. We combat on the local, specific issue at hand. It's about nuance, tolerance, discussion, and education. Most of all, it's about convincing people and not panicking, especially if you think your ideas are superior. They will win out. But the hysterical stuff turns people off and the overblown rhetoric and outright untruths (such as fake hate crimes) really make people close their ears.
How anyone can really be worried about the KKK is a bit beyond me, especially because these are same people who are silent on Islamic Terrorism.