Gold based currency

Doug French, president of Mises Institute, provides a very concise and convincing history here of why we need to return to a gold based currency.  Fiat currency, managed by central banks, simply doesn't work.  What we've had since the Federal Reserve bank was created in 1913, is a series of booms and busts largely because the government has used the Fed to micromanage the currency and economy.  But if you believe, as many do, that the economy simply cannot be micromanaged by the government, anymore than the weather or climate or sale of soap can be,  then the only question is how to get the government out of the micromanaging business.  How to do this?  Austrian School economists believe the only way is to peg currencies to the price of gold, just as was done prior to central banks.  The argument is that worldwide gold supply historically only increases 1-2% per year and the commodity is "trusted" by people all over the world.  Once currencies are pegged to the price of gold governments cannot pursue destructive programs like deficit spending and unilaterally inflating money supplies without losing their reserve supply of gold and undermining the value of their currency.