This is the way I would see it...
An inventory of the total number of ounces of gold reserves at Ft Knox and all the Federal Reserve Banks would be taken. Then we would have to calculate the dollar figure for all of the currency, gov't bonds, govt notes and coin issued through out the world. The total ounces of gold held by the U.S. divided by the total "currency, et al" would give us the value stated in ounces of gold of one dollar. Then the govt would have to provide a new currency, notes and bonds to reflect that it is backed gold and that currency would be redeemable in gold at any US bank. The old currency would be turned in to any bank and new currency (et al) would be given.
Perhaps simplistic but I think it would work. Ron Paul advocates an alternative currency as competition with the federal reserve note. His idea - I am sure - is better.
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