The crips colors do represent the neighborhood their 'set' is from. Some where light blue or even indigeo but, that's besides the point. The american flag represents America not the American government. If thats the case is it called "The American Government Flag"? No
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No and no.
The flag is imposed upon those neighborhoods by the gang to define their claimed territorial monopoly in violence through usurpation of the property rights of the residents. Just like governments, merely on a smaller scale.