Unmanipulated Real US Interest Rates are Negative around -8.13%

Michael Pento is correct about the calculation for “Real Interest Rates”:

Real Interest Rates are equal to the bond yield minus monetary inflation.

This is a simple translation of “nominal Interest Rates” within the Real Interest Rate definition.  These data points are copied from May 5th, 2016.

Treasury Bond Yields, nominal 1 month: 0.17%
Treasury Bond Yields, nominal 1 year: 0.58%
Treasury Bond Yields, nominal 30 year: 2.71%
Central Bank Federal Funds Rate: 0.37%

Consumer Inflation: 0.9%

Shadow States Consumer Inflation, 1980s metric:   about 8.5%

Michael Pento, around time 9:28 in the above video , states Real Inflation Rate in the United States is -1.7%!!  Use a One Year Note and subtract inflation, and we get -1.7% Real Interest Rates in the United States, Inc.

Using the above calculations the most current manipulated “official” numbers offers a:

0.58% – 0.9% = – 0.32% Real Interest Rate

Using the 1980 Metric for consumer inflation, we find:

0.58% – 8.5% =  – 7.92% Real Interest Rate

Using the un-manipulated consumer inflation, Real Interest Rates are far worse than – 1.7%;  – 7.92% Real Interest Rates would explain why the US, Inc Economy is in a tail spin, the High Level Bankers are Meeting such as President and VP and other countries are rejecting the Federal Reserve Note, and the rhetoric from the Fed no longer works as the market has no faith in the Fed.

Gold, Silver, bitcoin?

 

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