**Sorry if there is a double post? Browser crapped out as I was posting, so reposting to be sure**
Okay, so there are some good suggestions here and, obviously, some sarcastic and bad ones, but I think a few people here are right.
You are going to have to discipline yourself, but outright violence may not be the key. Even if you don't mind violence and it's satisfying or something, it can get you, or worse, your parents in trouble with the police. Today's society is overprotective of children (rightly so, there are a lot of truly abusive parents out there) so physical discipline is not necessarily the best answer. In no way do you want police involvement in this, it would only make things worse.
I like the idea of telling your parents first. Not like, 'Hey, I think I'm going to start trying to fix your demon child', but like some others said...wait until after your brother acts like a little shit, then tell your mom you won't stand for it much longer. This will key her off, but won't put you in any direct confrontation yet.
Then, next time he does something you dislike, tell him if he doesn't stop he's going to pay for it. Try sitting him down first and talking it out. He won't believe you. That's fine. You gave him a chance.
Then, you take something of his. Something valuable. And don't give it back. Period. Sell it or get rid of it somehow. He'll demand to know WHERE THE FUCK YOU PUT IT but you have to be stonefaced. Let him know that you are the one responsible through your expression, but never admit to it with words. If he tries to get physical feel free to retaliate. This will tell him you mean business. That when you take something, you don't just give up when he says he's sorry.
Reinforce the idea though, that if he doesn't straiten up his act, more bad things might happen. Start referring to it as Karma or sin or something. "You must have some bad Karma."
Next time he does something bad, destroy something of his, and leave it for him to find.
Obviously with all this you want to start fairly simple and work your way up. The first thing can be something more important because it shows you mean business, but from then on you want it to slowly ramp up until he's afraid of losing something REALLY big, like his laptop or 360 or whatever. It doesn't have to be a physical object either. You can mess with programs and stuff on his computer, or sabotage the TV or get him kicked out of groups/events or whatever.
Again, don't admit to it verbally. And make sure he doesn't hide any cameras in his room to catch you. Never give up, never break down, even if by whatever means he beats the crap out of you or gets you in trouble. If your parents just buy him new stuff, don't worry, it's just more fuel for the fire. It's their own fault for giving in to his desires, and maybe eventually they'll get tired of shelling out cash for his screaming and learn to buck up too.
WHILE all of this is happening, VERY IMPORTANT - You need to encourage good stuff as well as discourage bad stuff. Replace the negative energy with positive. Invite him out to a movie or lunch or icecream...go toss a frisbee or go fishing or something. Find something you can do together. Be sincere and try your damn hardest to find something he'll do with you where you can have a fun time, just the two of you. When you're out, he follows your rules, but you're fun and casual and kind, so it's alright. Show him that being a decent human being is worth the trouble. It might take a while to build up to this point, or it may never happen...I'm no psychologist, I've never been through this, I'm just thinking through what I would do in your situation. Essentially it's like training a dog, not to sound insulting. All creatures respond to negative/positive reinforcement, especially if you really put your mind to it. When you say no, you MEAN no. When you laugh and pat them on the back, you feel genuine appreciation for them. That may be the hardest thing, feeling genuine happiness towards him, but trust me when I say it's extremely important that you do.
Those are my suggestions. I really hope you find something that works for your situation! Remember, if nothing else, real life will eventually slap him in the face, it just may take time.
If you happen to be a more spiritually inclined person, or at least pretty open-minded, I'd happily recommend some books that might help you understand what's going on. You strike me as someone who is intelligent and more in touch with reality than those around you.