When I retracted my foreskin in the shower today, I saw fairly small small reddish blemishes and the skin is really dry. I touched it and noticed that when I rub there is white dead skin that seems to flake off/rub off. What is the deal with this, any ideas? I don't use soap on it and I haven't done anything abnormal lately. Please help, thanks

Could it be smegma?

Smegma? I don't usually find anything there. Is it normal to find things there?

Smegma is a natural "waste" material produced inside the foreskin. It is composed of secretions mixed with shed cells of the mucosa. Normally, it would look something like a soft cheese. It could form as a film over the entire glans, or it could be in little curds nestled in the sulcus (groove). The color could range from white to yellow, and it often has a distinct odor. If left long enough, the odor resembles some cheeses.

http://www.foreskin.org/smegma.htm

Daily rinsing with clear water keeps it under control, but in reality, nothing need be done about it, as normal sexual activity clears it away.

Your description - particularly the red spots which are sometimes found under white "plaques", suggests Candida ("Thrush") infection. Whether you notice any irritation or not is an indicator of severity - it may become worse or just fade out on its own.

Please read back through the forum for my comments about treatment of such a condition - which is not strictly necessary just on appearance, but rather a matter of whether it seems to be causing any particular mayhem - irritation or tightness of the foreskin.