If the US priced oil in gold, it would hurt the US economy in a big way, you are correct. This is part of the reason Saddam and Gaddafi were put in the ground,

If the US priced oil in gold, it would hurt the US economy in a big way, you are correct. This is part of the reason Saddam and Gaddafi were put in the ground, they wanted to do just that. Not only does the US get to print the currency that oil is traded in willy-nilly. US also gets to export the resulting inflation (from excessive printing) to the rest of the world.