Gold BACKED paper currency wouldn't make much of a difference. Those backing it can fudge how much gold they have and lend more than exists.
The only way it would work is physical gold and silver currency. But that won't work too well in a digital economy.
I see yr. point, but don't totally agree. Yes, there may be some room to fudge facts, but overspending and over borrowing by the government will eventually need to be reckoned with, as it was in 1971 with Nixon. With a gold-backed dollar, the market can still ultimately call BS on government profligacy. As it stands now, there are ZERO constraints on money printing and interest rates are completely political and at the whim of the FED.