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No, it is the other way around. The 16.7 PSI is absolute pressure, not boost pressure. In other words, you have to subtract out the atmosphere in order to get the boost.
Jeez! That last paragraph is jiberish. Lets just do the math.
16.7 psi - 14.7 psi = 2 psi or
34 inches Hg - 29.92 inches Hg = 4.08 inches Hg
Where, 14.7 psi and 29.92 inches Hg are normal atmospheric pressure.
This tiny amount of boost is the reason that CART will need to dump its current engine soon. When the 2.65 liter V8s were introduced many years ago they ran with a huge amount of boost. In the interest of safety CART decreased the power of the cars every year by reducing the allowable boost. Obviously with only 2 psi of boost they have gotten to the end of its life cycle.
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