Wow. His behavior makes no sense. The ONLY explanation I can possible think of is that he's gay and has a crush on you. Usually when someone is mean to someone else for no reason, it's because they have a crush.
I suppose you could try saying that really loud, in a really serious tone of voice in front of everyone. (I would, but there is some risk of physical violence involved.)
If he threatens you, say, "Cool. I could use the money. I mean, I would never attack you, so if you attack me, it's a total no-brainer of a lawsuit. I win. Period. So yeah, hit me. I need a new car." (Oooh, it's fun to see the look on someone's face when they hear that. Truth hurts.)
As I'm sure you can tell, I don't believe you can actually make him want to act differently. I don't think he actually dislikes you. He's just a jerk, for whatever reason. Whether I'm right about the gay thing, I have no idea. But the point is, he isn't going to like you for being nice- you tried that. He won't like you for being a jerk- that never works.
Just stand up for yourself. Be polite, be civil, but be clear and blunt. Don't lend him money, don't do him favors, don't let him think he has a hold on you.
Basically, get him off his power trip! Let him see he can't intimidate you into being nice or goad you into being mean. Ignore him, or just give him a look of utter comtempt and say, "Wow. Namecalling. That takes me back a few years... Haven't done that since fourth grade."
WHen he sees he gets no emotions out of you (at least on the surface), he'll probably stop. Especially if you get everyone else to laugh at him :)