Here's a little history for you all.........
That is the root of the problem we have today - our entire money supply is debt. I'm advocating returning to what the American colonists did - issued their own money, debt-free. They defied the British, who insisted in the payment of taxes in gold the colonists didn't have. Had they paid in gold, they would have had to borrow it from the British bankers and would have wound up heavily in debt to them. We would have remained a colonial vassal state, no different from other Third World vassals. But the intrepid colonists defied the British and insisted on issuing their own money. They went to war over it. However, the British heavily counterfeited the American paper money during the war, and it became seriously devalued. Besides being counterfeited, it had to compete with other more established currencies, just as Third World currencies must today. The Founding Fathers were so afraid of paper money after that that they left it out of the Constitution altogether. However, the government had no money to pay its debts, and there were farmers and soldiers rioting right outside the Constitutional Convention insisting on getting paid. They wanted their paper money back. Hamilton therefore resorted to the ruse of letting a private bank issue paper banknotes, pretend they were backed by gold (they were 90% counterfeit, since the U.S. Bank had far too little gold to back all their notes), and lend them to the government. Jefferson eventually saw through this ruse and tried to retrieve the power to create money from "bold and bankrupt adventurers merely pretending to have money," but to no avail. We've been on the British private central banking system ever since. Gold was essential to that system; it provided the cover that made the banknotes look "sound." How are you going to convert our $12 trillion money supply into gold? Where are you going to get the gold? If you declare other money worthless, what is the government going to buy the gold with? It's a mathematically impossible proposal.