GOP Longshot: Ditch the Fed and Go Back to Gold

Or in other words, the absence of a central bank like the Fed would leave the government with few tools to stop a market crash turning into a real depression.

Another problem Wright points to is the phenomenon of falling nominal wages.

Many of the conflicts between labor and factory owners in the 1800s had more to do with adjusting workers' wages downward in line with the overall price level than they did with owner-inspired greed, as is popularly perceived, he says.

Even so, salary cuts are not something most Americans would readily accept today.

Another practical consideration is where to set the gold price. Set it too low, and the mining industry could start hurting. That's what happened last time when the price was set at $35 an ounce, explains Jeff Christian, managing director of New York-based specialty commodities firm CPM Group.

That may go a long way to explaining opposition to Paul's plan from a very unlikely source: the gold industry itself.

"I believe that a return to a gold standard for the U.S. is [neither] advisable nor practical," says Pierre Lassonde, chairman of the World Gold Council and former president of Newmont Mining(NEM Quote). "The best way for people to protect themselves worldwide against inflation or deflation is by owning gold directly through a gold [exchange-traded fund]," such as streetTracks Gold Shares(GLD Quote).