I don't think it matters what you might do to deflate or otherwise change the value of the currency. It does not change the fact that there still isn't enough gold to equal the value of the economy and the cash in it. I think there are about 820 billion American dollars in circulation. If gold is about $820 an ounce (for convenience, but not that far off I think), then to back all the dollars at market rates the US Treasury woulld need a billion ounces, about 31,250 tons. I bet you we don't have that much. Maybe not all the major banks and reserves in the world have that much --- I don't really know. But I think that if the US were to try to acquire that much gold there would be some serious distortions of value in the price of gold, and it would become nearly impossible to acquire that much gold at any price.