Why not go back to Gold Standard?

Going back to gold standard is suicide because of the complexity of the financial system. This can cause massive deleveraging and an increase in asymmetric information. Imagine that derivatives are in trillions (Derivatives backed by underlying assets that is backed by dollars that is backed by gold).

Countries with the most gold will have a monopoly on earth.

US gold reserves are worth US$250 Billion, having a debt of US$10 Trillion++. If gold standard is adopted, massive deleveraging will occur. Put it in a T account and you get insolvency. Imagine US$1 in 1930 is worth US$22 today assuming 4% inflation.

The reason why Gold Standard was dropped was because it was rigid back then in 1930s. So current adoption will kill both good & bad financial innovations.