Hi scoutaz_2003
I don't disagree with some of your interpretation, but even the banks can re-negotiate contracts. The re-negotiations become the responsibility of the marketplace.
Everything can be re-negotiated, even salaries.
The problem for the government, is the monies tied up in fixed securities etc. items that the government has a direct role in.
Also, as long as there are savings accounts, unless the government seizes them, deflation would represent a serious increase in interest.
Good Luck to all!