If paper money was banned & silver & gold came back, what would happen?

[wiploc]

Deficit spending would become difficult. We couldn't stimulate the economy, so recession could become permanent.

Our country used to run just fine without central banking and deficit spending.

1. For some value of "run fine."

2. Even if that were true (as opposed to being, presumably, an ignorance-based assumption) it would not refute or even tend to refute Keynes' proof that economies don't necessarily return to full production.