Production is soaring, and production costs globally are failing through the floor due to technological and social innovation. Moore’s Law still rules, except it has migrated from the hardware level to the software level. No one can raise prices in the supply chain - they would be destroyed. Deflation is not going anywhere.
Your post is completely nonsensical and is like a college freshman talking about theory without actually knowing how things work in practice. If someone owes $300k for a mortgage and deflation occurs, that amount due may now be equivalent to $600k instead through deflation. One way or another they're going to default even if you make it illegal to default. Everyone and their mom is either going to walk away from those loans or be unable to pay and all banks collapse.
A college freshman (the brain of HairyMaclairy) would look at deflation and think it's good for banks because their relative profits from loans should increase. In reality, they take a bath on every single loan and die. When the banks implode, fiat then has a value of zero and Exter's Pyramid takes play where the value of all assets on earth is simply divided by the number of above ground ounces of physical gold and silver. Metals win in either deflationary or inflationary collapse. Bitcoin is useless in deflationary collapse and it's value would be nothingness.