Deflation?

To all the people crying that the stimulus and bailouts were going to lead to high levels of inflation. At the current time deflation presents the largest threat to the United States/Global economy. When people usually think deflation they think that falling prices is good, but deflation is normally excess capacity so businesses lower prices in a attempt to get costumers. This slims the businesses profit margins which causes lower wages. At the same time the debt burden on consumers and companies increase causing defaults. Deflation is a very bad thing, and should be avoided. In the long run due to the Moneterist policy the United States has been pursuing we will have to raise interest rates at some distant point to prevent stagflation.