[nested reply from below]
I think @tombstone makes a good potential point
I have been advocating vigorously to reduce the interest rate for more or less exactly that reason. In fact recently more of the witnesses have begun to see it the same way and the interest rate has started to come down, to 6-7% currently. I believe it should go even lower. I agree with tombstone that SBD can add a lot of value (in fact I believe it already does) as a payment vehicle without piling a lot of effectively long-term debt and risk.
BTW, I do intend to answer the question you asked about what happens if the debt ratio goes to 9% but I haven't had time to compose the reply yet.
Thanks. I think that may be solution that everyone can get behind.
No problem I think we are all busy right now. I love this kind of discussion because I find economics and the interface with psychology fascinating. Plus I also find it quite educational to discuss it with others particularly if they have different perspectives.
I do like the Steem dollar and I am not opposed to keeping it having thought about and spoken with @Beanz too - there are more psychological factors at work than I had previously considered - such as the PR potential for non crypto people and greater ease of acceptance by merchants.
I wonder if we have any economists, or psychological economists (is that the right word) who could also give some opinions on this subject?