Why do people lie for no reason at all ?

I have a close friend and I honestly believe this guy just lies all the time for no reason at all. Its gotten to the point where I do believe he is a compulsive liar, I've caught him so many times lying about the dumbest sh*t. Most of the time its lies where I feel he's just trying to impress me and others, from girls to money to the littlest things. Its so awkward because I know he's lying but I don't wanna make things more awkward and call him out... I guess I'm just being a lil bitch and should call him out, but the 1,2 times I did call him out, he just sticks to the lie, or tells another lie to cover it, and if I push him to the point where its obvious he's lying, he just says "i was just joking" and he's done this so many times. I think he's just an insecure bitch that needs to impress people, but I just don't know how to deal with this. He says he has a lot of friends, but I'm almost sure that he doesn't because it honestly is so easy to tell that he lies, its like he is deluded to reality. To end this post, he's the type of guy that thinks he's hot shit and a boss, but really he's not and follows people and is easily persuaded. How should I deal with this ?

/r/AskReddit Thread