Brief Answer:
Low grade intestinal infection with piles

Detailed Answer:
Hi.
Thanks for your query and an elucidate history, read it and understood the problem.

To recapitulate:
59 years old / Male - urgency in passing stool but comes out more of a gas, not much stool and blood comes with it - globs of red blood and stool does not look like there is blood mixed in it - stool is soft and sometimes creamy - more gases - cut down on milk in hoe that there may be lactose intolerance. . .

All the symptoms compiled together properly indicates that you may have the following problem/s:
There is a possibility of sub-clinical enteritis, meaning infection of the intestines associated with piles (hemorrhoids).

I would advise you the following:
First of all take a course of an antibiotic suitable for GI tract, metronidazole, probiotics and multivitamins for 5 to 7 days ( under the Doctor's guidance and prescription).

If the problem is solved, nothing more needs to be done other than having fresh home-made food, treated water and an examination to see whether there are piles and if present to know the grades.
Avoidance of foods and beverages which can give gases and such problems.

If the relief is not complete or not at all present then you have to undergo certain tests:
Investigations:
*Routine blood investigations like Complete blood picture, blood sugar, urea, creatinine, liver function tests, thyroid function tests.
*Urine -routine and microscopy
*Stool: routine, microscopy, occult blood, culture and sensitivity.
*Ultrasonography of abdomen / CT scan if warranted.
*Colonoscopy including to see the source of bleeding.

Further treatment will depend upon the reports.

I hope this answer helps to get a better idea of what you can have and the further steps to have a proper diagnosis and management.

Please feel to ask for more or if you think there is gap-of-communication..

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