German Angelsächsisch (literal translation is Anglo Saxon) is typically used in German as an umbrella term for the English speaking world, so Britain-USA-commonwealth is covered by it. While it is used sometimes to “other” the English speaking world it does not lend itself as easily as other terms for xenophobia because three German regions are actually called Saxony (Lower Saxony and (upper) saxony, saxony-Anhalt. Xenophobic speech in German would often refer to “der Engländer”, or “der Amerikaner” (the Englishman, the American)
In German "angelsächsisch" often goes with "Kapitalismus" opposing "Rheinischer Kapitalismus". It is used when comparing free-market economies with social market economies. Germans think about London being a financial hub or not everyone in the US having health insurance, when using "angelsächsisch". They do not think about races being superior.
In case of the US, it even brings it closer to Europe because the term groups Great Britain and the US to compare them to mainland Europe (mostly France + Germany).
> Yes, Nazi propaganda did often refer to the Allies, particularly the UK and the US, using terms such as “Anglo-American” or “Anglo-Saxon” in a pejorative sense. This language reflected the Nazis’ racist ideology, in which they posited a hierarchy of races with Aryans at the top and viewed others, including Anglo-Saxons, as lesser or enemies. This also served to foster animosity and dehumanize the Allies among the German populace. However, such language was not universally used by all within the Nazi regime, and the terminology often varied depending on the context and specific propaganda objectives at the time.
In general, the Brits were the "Tommys" or "Briten" or "Engländer", the Americans the "Amerikaner" or just "Amis", the Soviets were "Bolschewiken" or just "Russen".
Anglo-Saxon ("angelsächsisch") doesn't have a Nazi connotation, wasn't used in an exceptional way and isn't more dehumanizing than using "the brits", "the americans" or "the germans". "Amerikaner", "Briten" and "Russen" are also still in normal use.
Also: Nazi Germany did not see the Brits as "racially inferior". Most were also seen as "aryan".
It's a fairly common term in many languages. It just means "English speaking nations". It's similar to "caucasian" meaning white (who cares any more that they crossed the Caucasus? but the term sticks).