You didn't answer this my post:
Okay, you borrow money at 0% interest rate (that means that you will have to return the same amount you borrowed, you name it), which is essentially the same if you just had that money. Inflation as well as deflation is 5%, your profit margin is 2%, when will you suffer losses, and when will you earn profits?
I just did. Twice already. You make $20 profit in the 3 cases.
Except that you refuse to consider that nominal interest rate is higher when there is inflation than when there is deflation. That's my whole point.
If at 0% inflation, interest on a loan is 0%, then it will be 5% interest when inflation is 5% and it will be (funny) -5% when there is 5% deflation.
The point also being that you can't really have 5% deflation and 0% real interest rate (that is, negative nominal interest). But with your given starting points, that's what we have to consider, which is of course not really possible.