Negative Real Interest Rates = Positive Inflation Rates

Econbrowser has a very good article on inflation, rising energy and commodity prices, and negative real interest rates. the charts are from the article and there are more. Also I posted a chart of real rates in my previous post.
Late in his article econbrowser says:

I also find it implausible to attribute the commodity price increase to a surge in demand. The economic news over the last three months has been very convincing that output is slowing, not accelerating.

Instead I believe that the price of oil, like the price of all the other storable commodities, and for that matter the dollar cost of a euro, is primarily responding to the Fed's decision to move the real interest rate strongly into negative territory.

But once again the Fed has a golden opportunity to prove me wrong. Fed funds futures prices currently reflect an expectation that the Fed will make one more cut to 2% at the meeting at the end of this month, and then stay there. Here's a prediction for you. If the Fed surprises the markets by holding steady at 2.25%, all those commodities will begin to crash within hours of the news.

First I would respond that the commodity price rise has been significantly driven by increased demand and was forecast to do so by analysts like David Fuller and Donald Coxe a number of years ago. Another contributor has been the allocation of money to long only commodity funds by institutional money managers as a diversification tool. These investments while relatively small to the institutions involved amount to enormous incremental demand in the physical commodity markets. Furthermore the success of this strategy is leading to the usual herd behavior on Wall Street and the sums are increasing. A third contributor to the big price rise in commodities has been the tepid response of commodity producers to the increase. Three decades of low pricing power made these producers reluctant to invest in the expansion of productive capacity for fear of a cyclical downswing. Thus the supply response we would normally expect from high prices has not yet occurred. The last contributor and a big one it is now, is rising inflation expectations and the weak dollar. Econbrowser is exactly right that the blame for this can be laid at the Fed's doorstep.
Rumors in the markets friday were swirling that there was going to be a meeting oc central banks this weekend and also that the Fed might not ease again at the next meeting. And as Econbrowser suggested might happen the dollar rallied, gold fell, and stocks rallied sharply.