"If we lower the HBD interest rates then some percentage of people holding HBD for the high interest rates are going to decide that holding HBD at lower interest rates is no longer worth it. They will IMMEDIATELY dump their HBD, which in turn will IMMEDIATELY drop the peg under a dollar, which will IMMEDIATELY financially incentivize the network to convert HBD into HIVE, which will then IMMEDIATELY be dumped on the exchanges and lower the price of Hive. See how that works?"

This is exactly what is happening today. Two consensus witnesses, GTG and Ausbitbank IIRC, just posted that they were cutting the interest rate on HBD in savings with the intention of cutting it in half. I told the latter I was agin' it, but doubt they'll listen to me. I also told him that if they did it I would have to seek such returns elsewhere, exactly as you predict in the above quote.

"...20% is already pretty nuts."

It's below par with inflation IMHO. I was at the grocery store today, and noted many things have literally doubled in price in a year, and very few haven't increased substantially. I'm not sure what the actual inflation rate is overall, since it's specific to all the variety of stuff that's priced, but I am very confident it's not below 20%. Just last week Argentina devalued the Peso by 30%, bumping their inflation rate up to ~180%, and I believe there are those attempting to do exactly the same thing to the Dollar.

I have found that it is being right about things that make me the saddest, because it means the tragic events I was right about were entirely predictable, and could have been avoided. I advocate raising the interest on HBD to 50%, not dropping it to 10%, but I want to see Hive grow, not keep it crippled and unattractive to outside investors.

Thanks!