Deflation coming? What happens when the fractional reserve system unwinds?

Economics Economics Questions
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1

http://ponziworld.blogspot.com/2008/01/deflation-vs-inflation-vs-both.html

While I am new here, and to economics in general, I have started to believe a deflation is coming. Or at the very least there is deflationary pressures on the economy.

What I can’t find explained anywhere, is a “See Spot Run” example of how the money multiplier would look like in reverse. i.e. how exactly would money just “dissapear”? I can’t quite get my head around the thought that money wouldn’t just change hands, but vanish into thin air altogether.

Any help here?

2

Ignore that last post.

Say theres a 10% reserve ratio and a bank need to write off $1 million in losses.

To keep the same reserve ratio, it’s balance sheet shrinks by $10 million.

$9 million just dissapears.