I'll tell you what you should not do. You should not laugh in his face while they're talking shit. Apparently, it only adds more fuel to the fire.

Some kid was talking shit to me the other day. I started laughing at him because I legitimately thought it was funny (maybe it's just my way of dealing with it, who knows?) I didn't care to fight him, but he wasn't too excited at the fact that I was laughing in his face.

This doesn't happen very often to me, but in the event that it does, I typically just shed light on how ridiculous they're being. And I'll try to make a joke out of the whole thing. If I'm with friends, then I will make sure that i can maintain my social proof by not acknowledging him at all. Look at your buddy and be like, "Who invited this guy?" Then look at him and be like, "Hey, thanks for playing. We appreciate you coming out tonight." Cocky-funny.

Or I will try to get into a serious conversation with him. I find this funny.

"Hey, dude fuck you. I'm going to beat your ass!" - him
"Okay, that's fine and all, but who are you going to vote for- Clinton, Obama, or McCain? I really like Obama because I think he represents a change towards the better. Plus, I don't really trust McCain or Clinton that much." - Me
"You're a faggot." - him
"I just feel like I wouldn't be comfortable shaking Clinton or McCain's hand if you were face to face with them. You know what I mean?" - Me

Be confident, cool, relaxed. Hide your nervousness and frustrations. Don't let him pick up on it because it will only give him something to push of off.

First off, never bring your politics to bare against someone who already wants to hurt you. What if the dude's for Clinton? Now you've got twice as big a fight on your hands, and it's personal _and_ political.

Second, after reading this, I sorta want to kick your ass. You're completely ignoring the guy's issue with you (I'm gonna beat your ass usually means he thinks you're a dick), you're providing him more fuel for his fire. If you're going to reframe it, you have to acknowledge the guy's got beef, and then take it away from him.

Him: Fuck you, I'm gonna beat your ass!
You: Fuck you. Before you beat me, though, who do you think is hotter, the blond or the redhead?
Him: You're a faggot.
You: And you're a dick. Seriously, though. Blond or redhead?
Him: Um... The blond, I guess. I'm going to fucking stab you.
You: Let me introduce the two of you first. I suck at introductions when I'm bleeding...

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-Monkey's Little Brother, Spud