I think you miss that numbers are not only infinite in length (ie 1,2,3,4, to infinity), but they are infinite even in depth (ie there are infinite numbers between 1 and 2)

What is important is the purchasing power of the money. If bound to a gold standard, the purchasing power of the money could increase, so as to make up for the new goods and services.

What you don't want is for your money to have very low purchasing power, like Zimbabwe. Unfortunately, thats the path you are recommending.

With all due respect, I believe Mr. Solman's answer is overly simplistic and incorrect. Since gold enters the money supply at a fairly stable rate, with relatively fixed production costs, the money supply can not only expand in relation to an increase in goods and services but expand in a stable manner that reflects economic realities--unlike when the Fed "eases credit" and cranks up the printing presses to rescue incompetent banks at your expense through currency debasement. Inflation is taxation without representation. Economist Murray Rothbard's essay on the gold standard vs. fiat reserve notes can provide a comprehensive explanation for the layman; it can be found here:

http://www.lewrockwell.com/rothbard/rothbard181.html

There is always a trade off between stablilty and growth. The 'Gold Standard' is stable because it does not allow for monetary expansion. This becomes an issue when the production capacity of a country increases at a rate faster than the gold that can be mined. If you study a bit of classifical economics in the 1500s onward, a major limitation on economic growth stems from the lack of silver and gold in circulation. This leads to a 'beggar thy neighbour' philosophy in international trade as country hordes precious metal, as a lack of currency is fatal to an economy.

In constract to Zimbabwe, the US Fed doesn't jut 'print' money, the moneyis given out by buying bonds/assets or loans. In contrast, Zimbabwe just prints it without any restriction.

Ideally, the purpose of money is to vacilitate the processes of the real economy. Saving is not money in the bsnk but idle resources that can be put to work for capital formation. Unless banking is as boring as the water supply and less profitable its not doing its job. If Gold can make banking boring and bankers incomes normal and the business pages are full of real innovation and not M&A or hedge funds, it will be a good thing. Poor answer. Really bad answer, imo...