Agreed, there would be some short-term inflation. And everyone who isn't living hand-to-mouth will hang fire and wait for prices to stabilize. The market can take it from there. You'll see a dip in sales of durable goods, homes and cars, etc. It won't last.
followed by a complete economic crash as our economic enemies make sure oil goes to $200/bbl and they call about $1 trillion in US debt.
You are vastly overestimating both the power and the unity of our "economic enemies." For the sake or argument, let's suppose that every country that has oil cuts production. Won't happen, ut let's suppose, just for s--ts and giggles. Suppose that not a single one of those countries ramps up production to take advantage of the skyrocketing price. Let's assume that they all stay in lockstep, and no one breaks rank. It's absurd, but for sake of argument, let's stipulate all of that.
Then the oil-producing countries are cutting their own throats just so they can bleed on our shoes. They will not survive the wrath of their own people when the common folks' bellies are empty. They would be killing the proverbial goose that lays all those golden eggs.
The USA is the locomotive at the head of the global money train; cut yourself off from then engine, and the locomotive rolls ahead while the train of cars behind rolls back downhill to a catastrophe.
We have billions of acre of grain. Vast fruited plains. If need be, and if it's cost-effective, we can run our cars on ethanol or biodiesel. At no price point can you eat petroleum. the USA is the breadbasket of the world. Bottom line: You cut our energy, we cut your food. Capisce?
It makes no sense at all.
Many prominent independent economists (ones not paid by the AFFT) are saying the same thing about the FT - but are being shouted down by angry mobs like the AGW crazies go after "deniers"