Really stupid idea. When the dollar was backed by gold...
- We had severe deflationary depressions every 20 years.
- We had severe year to year fluctuation in the value of the dollar, sometimes even 20% swings in year to year inflation/deflation.
- Congress devalued the dollar whenever there was a major crisis.
- Congress was still able to borrow and they have no hesitation about promising that your children will repay their debts with gold.
Other things to consider...
- China is the major producer of gold. Linking the dollar to gold gives China control over our monetary policy.
- Speculators like George Soros can manipulate commodities like gold much easier than they can the dollar.