A naked short is when one guy sells a contract to deliver a product he does not own next Tuesday. The only way this works is through big money fraud. Both buyer an seller realize this is just a pretend game. The product will never exist.
Nothing is real. The contract allows for settlement in fiat currency. The natural law of supply and demand has been broken. This is called a derivative.
So what? This is just two guys making a bet on the future value of a product. Who gets hurt?
When this pretend game sets the price for a real product, the producer of the real product gets hurt. If the product is corn, and a rice producer drives the corn price down to manipulate the price, the corn farmer loses. The price has been set artificially. Nothing is real!
In theory, this game stops when the guys playing it stop because of losses. However, this is only theory. Very big players oversee this derivatives game. Nothing is real!
The solution is the honesty of the open ledger blockchain. The big money players in the derivatives game are not likely to become honest and stop their fraud.
Today Silver took a massive drop in price. Some guy sold some paper silver for delivery sometime in the future.
How is it possible to win this game? The only way to win is to refuse to play. Hold real assets. Hold honest assets based on blockchain technology.
Hope for the future where strategies like a naked short are recognized as destructive lies. I am in favor of public executions for those who participate in these games! OFF WITH THEIR HEADS!
Here is today’s beauty.
