@korkamann,
Baldy is definitely delusional, whether it's because of early onset Alzheimer's or because he would rather cocoon himself away from reality is anyone's guess.
He's very certain about things though, and that is a sign of dementia. I've had dealings with dementia sufferers, and one thing they don't have is doubt. If you have a couple where one of them is suffering from dementia it tends to be the other one who thinks they have it.
I know this from personal experience, my wife died just over ten years ago, about the same age Baldy is now. Cancerous cells got into her spinal fluid and put pressure on her brain. She accused me of all sorts of lies and deception, and if it hadn't been for my twelve year old daughter I would have doubted my sanity. Some stuff was easy to dismiss, about imagined relatives, but other stuff, about what just happened, things like that, not so much, especially when the person you're dealing with vehemently insists they're right.