Angry Political & Offensive Brother in Law?

So this my boyfriend’s sister’s husband. I’ve been with my boyfriend for 11 years so his family is mine. We are more life partners :) Three years ago, we moved into a duplex house with them. They have their apartment and we have ours, we just share the backyard and laundry room. It has been going very well except for the Brother in law! I will call him Joe.

He is super political and it’s all I ever hear him talk about. What is crazy is that we have mostly the same beliefs… we are both the same political party and I generally agree with everything although he tends to be more extreme and not at all understanding of other people positions or perspectives. He just rants at me and others like we don’t agree or know where he’s coming from. Since this 2016 election he has been supercharged. He is obsessed with race and ethnicity. He is only partially Mexican. His grandpa is from Mexico but all other relatives are Caucasian. I am the same – I am white but my grandpa is Spanish. I consider myself Caucasian though while he obsesses over calling himself Mexican. He’s obsessed with race and constantly disgraces white people. He makes rude obscene comments to me and other white people about how we are entitled and “oh that’s such a white thing to say” or “well if you weren’t a privileged white girl maybe you would understand.” His comments are so rude and humiliating. One time he said in a hot and heated conversation that “everyone can be racist towards white people because they deserve it but whites can’t be racist to anyone.” He says these comments to my friends and I even heard that he is really offensive in his workplace. He tells lies and big fish tales about how he is treated differently because he’s “brown” or because his last name. We were flying together once and he said I didn’t need to worry about anything because I’m white and they never mess with white people. He got really crazy about how he was just anticipating the ‘racist pigs’ when we got to security. They ended up pulling me aside and doing extra security checks and gave me a hard time because I had metal on me somewhere but I couldn’t figure out what it was to remove it. He breezed through with no issues and instead of letting it go he said it was reverse racism, they didn’t want to mess with him so they wouldn’t get in trouble for being racist. I’m just exhausted from being around him and he rarely shows his kind side anymore. I have to be around him often because we now have a little nephew and another on the way and I want to be part of their family. It’s getting to the point where I have to try not to mention things so as not to set him off. I constantly fear he will humiliate me in front of friends or new people because he has done it so often in the past. My bf hates it too but he is so passive he never says anything. He tells me getting enraged is what he wants he just likes to argue and press people’s buttons. I’m a really open minded person and try to be as empathetic as humanly possible but he tells fibs and lies to make his stories sound shocking. He is no better than the other racist jerks out there.
What do you think I should do in the future? I feel like we are letting him walk all over us just to not enrage him further. I told my bf I wanted to just kindly tell him one on one that his political and racial rantings were stressing me out and getting in the way of us enjoying time with him but he thought I should just leave it. Am I being sensitive and would this just cause awkwardness or something? I welcome any suggestions that will help me find some peace.