Do you have the backwards?The dollar has lost 95% of its value since the creation of the Federal Reserve.
Inflation with gold based currency is rare. The California Gold Rush is the big example of inflation with a gold currency.
No, I don't.
Firstly, the periods when the US had no national reserve bank showed either severe inflation or a depression / panic cycle that only ended with a private reserve bank being set up as lender of last resort - hardly ideal. In both cases the lack of reserve banking made the financial system volatile and unstable.
Secondly, the Federal Reserve was created 99 years ago. A 95% drop in value (your numbers, I've no idea of their accuracy) is equivalent to inflation compounded for 99 years at just 3%. While I agree hyperinflation is bad, 3% is a long way from hyperinflation and a cursory examination of the Japanese economy in the 1990s shows why deflation is a bad thing. Some small inflation is good because it promotes market liquidity rather than hoarding and provides incentives to investment.
Thirdly, China are being asked to revalue the Yuan because its value is being artificially manipulated down to make both Chinese exports into world markets cheaper and foriegn imports more expensive, both to the benefit of China but the detriment of global free trade and free markets. It also has the side-effect of exacerbating China's balance of payments surplus and leading to it stockpiling both resources and currency (thus artificially boosting its international buying power), which is directly parallel to the mid-19th century 'silver grave' situation that led to the Opium Wars. Revaluing the Yuan is emphatically not an indication that the dollar is inherently weak, it's an indication that China is trying to use the openness of western markets and restriction of their own to its own advantage.
Fourthly, the California gold rush and resultant inflation is an example of what happens in a commodity-backed economy when that commodity suddenly becomes more abundant, a factor that is now out of state control unlike the Dollar money supply which is currently able to be tightly controlled. Commodity-backed currencies in the past have also caused severe deflation, and we're back in Japan in the 1990s. Now, the bulk of world gold mining assets are in Australia and China, and China is agressively buying up Australian mining assets - well, mining assets in general, particularly across Africa, using up its balance of payments surplus created by their artificial suppression of the value of the Yuan. A gold-backed US economy would have its money supply (and by extension both credit availability and rates of inflation / deflation) largely out of national control and primarily in the hands of China. I don't think this is a good idea.
All of which is why I think Ron Paul's understanding of economics is dangerously flawed and (reluctantly) I'd regard him as the least preferable Republican presidential nominee.