It is a tough problem. The change you propose is a lot of work, and while it might help, I'm not convinced it will solve the problem. Plus, if we increase the supply by too much then we have the debt limit to worry about.
IMO, the real problem is not that there isn't enough supply, it is that there is not enough circulation. Too many people are buying and holding, instead of selling when the price goes above the peg. I don't know the solution, but that is the problem I think we need to solve.