It doesnt need to be backed by silver or gold, all they are is metals, you cannot eat gold, and it does not shelter you. What we need is production. As long as goods are being produced, we will be fine.
Inflation though, well that is just the cycle we are in now. Here is my shitty MS paint diagram
The problem with this however, is the lag in getting the facts about our economy (it is usually a couple months before we know what the economy was really doing at the time) and then the time on top of that debating what to do in congress and ultimatley making a decision, at which time the economy may already be recovering or slowing causing us to deviate further away from stability. Inflation goes down, unemployment goes up and vice versa (nearly all the time unless stagnation).
"Money is a veil, productivity is the true measure of wealth." - Milton Friedman
(sorry for cliche, overused quote, but I think it fits.)