I think both your statements are true.  It probably was a Republican staffer who came up with the name, and they are quite often racist.

I hope it doesn't catch on with Liberals, however, as it plays into Allen's "all my foes are anti-semites" schtick, that helps people feel less guilty for voting for a closeted clansman. Just call his Senator NoMore.

as part of a headline by Jon Podhoretz which struck me as very funny.