How small would coins have to be today? With gold and silver traded on the world market, the prices swing wildly. You would have no idea what a dollar might be worth tomorrow.
How does the little moron plan to raise GDP, mine more gold?
His 1820 brain can't grasp reality in a 2012 world.
The gold standard is a lovely idea in theory.
In practice it would put the amount of monetary expansion at the utter mercy of new gold strikes, and whether someone develops an inexpensive way of transmuting lead to gold or of extracting gold from seawater.
Unfriendly governments, such as Rissia, controlling gold supplies would be put in the present position of OPEC, able to damage our economy by releasing gold, or not.
In the absence of sufficient gold being mined to keep up with economic expansion, we would get deflation, which is at least as damaging as inflation.
GDP grew nicely long term under the gold standard (e.g. late 1800's) The problems, just like with currency, stem from politics and manipulation. Certainly the current dollar regime is a mess, we have no choices but future inflation or major recession.