[/quote]

The same goes for borrowers. The cost of borrowing money is very high, even at 0% interest.

[/quote]

If this ever becomes true, then interest rates in the free market will become negative. 

I am not entirely sure where the idea that one would not grow rice in such an environment comes from.  You are saying there is an implied increase in the value of cash money (whatever currency presumably not easily replicated - bitcoin, gold etc) and this increase is so big and fast one can live off of it while doing nothing.  That assumes some interesting priors that do not seem actually possible in the real world ... for example, if such were true, the price of items that take actual "work" to make such as rice would go up so big and so fast as to make it worth doing again ... yes? 

What I am trying to say and probably not doing so eloquently or succinctly (maybe some other newbs can help) is that it is pretty circular to say "assume a world where the value of money rises so fast its better to do nothing at all with one's life because you can get rich doing nothing" and then go on to say "in such a world people would do nothing."  I do not think the former is possible.  the scenario where deflation in a given currency is so strong for so long that everyone just quits their jobs is just not realistic.

Another mechanism which breaks the above: if a currency system experienced such dramatic appreciation on an ongoing basis and for so long as to convince people it would never end it will be supplemented with other means of exchange and would basically be a store of value and not a means of exchange  AT ALL..  So what?  Other currencies will be used...