Even Lord of the Rings has racist elements - JRR Tolkein said in multiple occasions that he based the dwarves on Jews

I don't doubt this, given the era the man was born, but have you got a source? I tried digging something up, and the only things I can find are that Khuzdul is based on Hebrew, and a lot of letters during and post WWII speaking highly of Jews and poorly of Hitler and the Nazis.