This only works up to a certain volume. The world economy requires about 38 billion barrels of oil per year. If you processed 100% of all grain, sugar crop, tuber and oilseed on Earth into liquid fuel, leaving zero for food, you'd get about 6 billion barrels of oil-equivalent in liquid fuels. Since it has to compete with food, the actual number would be much lower. It's not even close to being able to sustain our civilization.