How $10 Gas Will Wreck The Fed’s Stupid Game–By Rick Ackerman

THE MORNING LINE —  Rick Ackerman.

Rick Ackerman, a native of Margate, NJ began his career as an investigative reporter for the Press of Atlantic City in the 1970’s.  He later became well known trader on the Pacific Stock Exchange. He is now a financial analyst in Florida, where he publishes the Morning Line at His columns are re-posted here on a regular basis.  Click here for original post:  How $10 Gas Will Wreck the Fed’s Stupid Game – Ricks Picks (

There’s no relief in sight for gas prices that seem headed to at least $10 gallon.  The chart above suggests July crude will likely hit $128 this week or early next, a whopping 7.5% gain over last week’s high. But watch out if the futures shred their way past this Hidden Pivot resistance, since that would portend a continuation of the trend to $140, a target first drum-rolled here several weeks ago.  It’s a safe bet that Californians will be paying $10 or more for gasoline by then, even if far fewer of them are driving. Realize that it is not consumer demand that has been pushing up prices, or even conspiratorial constraints on supply, but rather a flood of speculative money into energy resources as a hedge against inflation.

The irony is that the coming price collapse in crude will be part of a deflationary tsunami that wrecks the banksters’ moronic shell game. It will occur simultaneously with a real estate collapse that has already begun. Indeed, bidding wars for homes appear to have ceased due to the steep rise in mortgage rates, record-high prices for homes, a dearth of inventory and a scarcity of qualified buyers. These factors have created perfect conditions for a real estate collapse.

No Escape

Inflation in energy and real estate are similar in that neither contains an escape hatch for investors. Because energy prices cannot continue to rise without eventually throttling the economy, the rally is doomed. But when prices finally plunge, as they must, that will suck the air from a $2 quadrillion derivatives market that was largely built using energy resources as collateral. The collapse in mortgage-backed securities did the same thing to the banking system in 2007-08. This time, although tens of millions of homeowners are sitting on huge paper gains from real estate inflation, none of them can cash out because there are no reasonably priced homes for them to move into.

A well-known quote from the late economist Herb Stein encapsulates the endgame: If something cannot go on forever, it will stop. Inflation is close to that point. When it finally arrives, the economy will not simply level off and enter a glide path to renewed prosperity, stability and economic health. On the contrary, it will experience a wrenching dislocation with no remedy save the kind of brutal price discovery that we have not seen since the Great Depression. is a tax-exempt, non-political education organization of roughly 200 citizens who mostly live near Atlantic City, New Jersey.  We formed this group in 2003. We volunteer our time and money to maintain this website. We do our best to post accurate information. However, we admit we make mistakes from time to time.  If you see any mistakes or inaccurate, misleading, outdated, or incomplete information in this or any of our posts, please let us know. We will do our best to correct the problem as soon as possible. Please email us at or telephone (609) 927-7333.

If you agree with this post, please share it now on Facebook or Twitter by clicking the “share” icons above and below each post.  Please copy and paste a short paragraph as a “teaser” when you re-post.

Also, because Facebook and Twitter falsely claim our posts violate their “community standards”, they greatly restrict, “throttle back” or “shadow ban” our posts.  Please help us overcome that by sharing our posts wherever you can, as often as you can.  Please copy and paste the URL link above or from the Twitter share button to the “comments” section of your favorite sites like or  Please also email it to your friends. Open and use an alternate social media site like

Finally, please subscribe to our weekly email updates.  Enter your email address, name, city and state in the spaces near the top of our home page at Homepage – Liberty and Prosperity.  Then click the red “subscribe” button.  Or email me at or address below. Thanks.

Seth Grossman, Executive Director

(609) 927-7333

  • Mr Seth Grossman

    Atlantic City, NJ Attorney since 1975. Executive Director of Liberty and Prosperity since 2003. GOP Candidate for Congress, NJ State 2021, 2018. Adjunct Professor of Government & History at Atlantic Cape Community College 2010-2017. Contact (609) 927-7333

    View all posts

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top