This is true.
"Gold stands in the way of this insidious process."
This is manifestly false.
Why do you think the government was forced to abandon the gold standard? Answer: because they expanded the supply of money and credit beyond the point where the issued notes could be redeemed. And this happened under a gold standard.
You are pretty close, however. The real evil is fractional reserve banking where the government and its merry band of bankster thieves can issue credit in excess of savings. And in the context of a banking system with a 100% reserve requirement a gold standard can be valuable. But redeemable currency per se solves nothing. History proves this.
I think deficit spending is the problem because it is increasing the money supply, which is the cause of inflation. I won’t quibble with you on fractional reserve banking under the gold standard.