[Gideon7]

if there isn't enough money in the system, prices have to fall to make sales. If there isn't enough money in the system, individuals can't get loans to buy homes, businesses can't borrow money to expand their business and create new jobs, etceteras. The entire economic system spirals downhill.

How can deflation happen if the Treasury is printing money by the bucketload to pay for the deficit?

(This is not a rhetorical question or a criticism of your post. You may very well be right about deflation. I just don't understand how it can happen under the current circumstances.)

[Buffalo Head]

The fact is the Treasury is not "... printing money by the bucketload to pay for the deficit?"

They have been borrowing it from China. To print money as you suggest would cause hyper-inflation and the interest on the national dept would be unpayable. That will happen anyway on our current course, it is just being delayed by fiscal games.