Why is my friend so racist?

Well, have you talked to him about it? If not, you should. He isn't going to be a very popular or well liked person if he keeps this up. He might even end up getting beat up for it. He is taking it too far, we are ALL people and he'll have to accept that being racist doesn't get you anywhere in live. He's going to have to work, talk to, and live alongside different colored people.