Our expert says:
Sounds like one incident in what must be a long series of behaviour and discipline problems with this kid. Its not clear from your message, but apparently you, his older sister, are raising him, and not a mom and dad ? As for discipline, that's a very complex issue to discuss here. But it's best not to have to make ad hoc rules and punishments, but to work out a simple and reasomnable set of rules and consequences dealing with major and significant issues ( like NO VIOLENCE towards anyone else, especially not you and baby sister ). And consequences he should know ahead of time, like losing the privilege of riding his bike to school for 1 or more days ). Then it becomes clearer what you expect from him, and what he can expect if he breaks important rules, bringing those consequences on to himself, but alo being easily able to avoid them.
Some of this naughtiness and especially the tale-telling, sounds like he wants to get your attention, somehow feeling a bit neglected unless he is naughty or telling tall stories, which grab your attention. I don't know if the dog/camel example you quote is a real one, but if so, he would know that you know that no real camels were involved, so that would not be a typical lie, but more of an attempt at a game ( though when you called his bluff, he had to abandon the game ).
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