I smell lower gasoline prices in our future.

Despite the US dollar index breaking down right now, US gasoline prices appear to be rolling over as well.  It's very strange because they are supposed to move in opposition according to everyone's models.  I discussed the price decline of gas in a couple posts recently using XES as a charting proxy for gasoline prices.  Since then I found an ETF that is supposed to track USA gas prices: UGA.  So I will be looking at UGA from now on when I want to think about lower gas prices.

I mentioned that I recently saw gas at the pump drop into the low $3 range.  Tonight I saw a $2 handle on it even if it was still $2.99.  The chart below shows multiple bumps up the slope of hope that began with all the money printing in 2009.  That kind of jagged chart action is clearly corrective, not motive.  You want a motive example?  Look at the crash into 2009.
 
Also look at what happened to the chart up until now: a declining double top has formed and now the chart is threatening to break down through that long, multi year support line.  If that happens then there is no way there will be enough confidence to bid it to a new high and without that you have a nasty set of owl ears.  Those are the kiss of death these days, just like head and shoulders tops were the kiss of death back in 2007 and 2008.

And so I think there is growing technical evidence that gasoline prices are going to be swept down by deflation.  You know, that deflation that Ben Bernanke and the con men are always protecting us from.  God knows what we will all do if gas plummets back into the $1.85 range like I suspect it will.  Ben has been telling us that deflation would be intolerable, blah blah blah.  But having savings to my name I think it won't be that bad.  I think some things will get cheaper and I will be able to have higher personal consumption per unit currency spent.

Now you know what Ben really wants to save us from: getting our money's worth.  The elite cannot rip us off without inflation.  Their massive asset prices will burn in deflation.  Who do you really think that a$$hole Ben Bernanke is protecting with all of his monetary debasement?  You?  Me?  Anyone we know?  Get real.  Inflation is, was and always will be a total scam which is an effective theft of labor AKA slavery.  That is the economic truth of it no matter what Bernanke says.