I just don't understand where you guys take the idea that "in a deflationary world, free market will make interests negative"
Would you loan 100 BTC today, for the promise of 95 next year?
(if the answer is yes -we have a deal!)
In a deflationary world, you would have much less investment. No credit bubbles; but for that purpose, also all our current wealth is "bubble" -it has been made possible by debit expansion and state deficit spending. We would settle down to where a "solid" growth would have led us -that is, to a much poorer economy. Maybe then we would start growing "healthly" (albait for sure, much more slowly), but the transaction would be incredibly painful, destroying much of our productive system that simply cannot exist without easy credit and the compulsion to consume created by inflation.
think about it this way
if you promised me to give me 95 of [whatever 2014's major CPU is] in exchange for 100 of [whatever today's major CPU is] I'd take it
Of course we are strictly postulating something which is pretty unlikely for reasons which I have stated above (where you think money itself is GUARANTEED to buy more and more and more with no investment).