Liberalism means Freedom to do what you want as much as possible. What exactly has that to do with racism?

This is idealism- describing things based on inconcrete and unfalsifiable concepts and not what can be empirically observed. Liberalism can be more accurately described as a series of power relations where the bourgeoisie have dictatorial control of almost all of the means of production, where intraclass and interclass conflict are mediated by a nominally democratic state.