How do I deal with my Father-in-law?

and exactly what is your question? If you don't like having a conversation with or can't be man enough to voice your thoughts with your father in law then don't. He sounds like a normal stand up guy and you seem to have a problem with his opinions yet don't have the guts to voice your own. I'd bet he has his own opinions about your views or maybe doesnt know them because you don't voice them. What's wrong with having racist, sexist or whatever differences people may have in a conversation? If everyone shared the same values and beliefs, there would be nothing to converse about.