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This isn't because of anything that was in the bible or God's law. There is no such injunction in scripture. The problem was that the jews of the time ADDED to scripture. This is why I keep saying that you confuse scripture with Jewish tradition

The Jewish Law or Halacha is derived from the Scripture (Torah), based on long and exhaustive rabbinical interpretations of God's laws. Mom already explained why it is impossible to make oneself righteous by the law -- for to do so one has to obey it perfectly and no one, given our nature, can do it.

Ruth is not a good example of how Judaism views the Gentiles. After all, Ruth did become Jewish. But there were no attempts to teach the Gentiles about God; Judaism does not know proselytism. So, without Christianity, the God of Abraham would have remained known to the Jews, whatever their numbers. That the God of Abraham is known to and worshipped by billions of people today is the work of Gentiles, not Jews.

Now, as far as Halacha is concerned, the Jewish Law is not always very kind towards the non-Jews. Using Jewish sources and not various hate groups that litter the Internet, it is important to understand that Halacha is part of the Talmud and that it has evolved from about 200 AD and for the past 1800 or so years. As such, many of the Halachic pronouncements must be understood in the historical and cultural context and not as isolated phrases, but they nevertheless act as guidelines taught by people of influence. Let's look at some of them:

Jew who murders a Gentile is not punishable by death in the human courts. According to some opinions he is not punishable at all by the human courts. But a Gentile who kills a Jew, purely by accident and unintentionally, must be put to death.
Laws in regard to murder, which clearly state that there is Halachic difference between murder of a Jew and of a Gentile (the latter is considered a far less severe crime).
A ban on desecrating the Sabbath to save the life of a Gentile.
A Jew's exemption from liability if his property (e. g. ox) causes damage to a Gentile's property. But if a Gentile's property causes damage to a Jew's property, the Gentile is liable.
The question of whether robbery of a Gentile is forbidden by the Torah's law or only by a Rabbinic decree.
A ban on returning a lost item to a Gentile if the reason for returning it is one's sympathy towards the Gentile and compassion for him.
The sum which a Gentile overpays in a business transaction due to his own error is forfeit; whether a Jew is permitted to intentionally deceive a Gentile is also discussed.
One who kidnaps a Jew is liable to death, but one who kidnaps a Gentile is exempt.
A Jew who hurts or injures a Gentile is not liable for compensation of damage, but a Gentile who hurts a Jew is liable to death.
One who overcharges a Gentile ought not return him the sum that the Gentile overpaid.
A Gentile -- or even a convert to Judaism -- may not be appointed king or public official of any sort (e. g. a cabinet minister).
One who defames a female proselyte (claiming that she was not virgin at the time of her marriage) is liable to neither lashes nor fine.
The prohibition to hate applies only to Jews; one may hate a Gentile.
One may take revenge against or bear a grudge towards Gentiles; likewise, the commandment "love your neighbor" applies only to Jews, not to Gentiles.
One who sees Gentile graveyards should curse: "Your mother shall be greatly ashamed..."
Gentiles are likened to animals.
If an ox damaged a Gentile maidservant, it should be considered as though the ox damaged a she-ass.
The dead body of a Gentile does not bear ritual impurity, nor does a Gentile who touches the dead body of a Jew become impure -- he is considered like an animal who touched a dead body.
One is forbidden to pour anointing oil on a Jew, but there is no ban on pouring that oil on a Gentile because Gentiles are likened to animals.
An animal slaughtered by a Gentile is forbidden, even if the ritual slaughter performed was technically correct, because Gentiles are deemed like animals. (Daat Emet does not agree that this is the Halachic reason for invalidating a Gentile's ritual slaughter -- but this is not the place to delve into the subject).
Their members are like those of asses" -- Gentiles are likened to animals.
There are Jews (who are referred to as 'men') and gentiles.

I highly recommend that the reader also use the link included and read rabbinical explanations and opinions on these issues before passing any judgments, but the very fact that such issues exist is significant. Hate and intolerance is a human quality -- passions that lead to the death of the soul, which is why all humanity is in need of salvation.