So the short answer is actually two-fold: government spending as a percent of total GDP is low and household debt has been declining, which is deflationary.
Household debt declined by writeoffs not by repayments, hence money supply was destroyed correct?
Interestingly, it doesn't matter whether by write offs or repayments. Either case is deflationary. This is due to the fact that money is created when credit/debt is created. When the debt is paid off, or the credit repaid, the money is then destroyed. The same occurs in write off.
there is the factor of the fractional reserve though involved here, as by writeoff the bank cannot lend the money that would get by repayment again.