If your Moteino doesn't have flash installed then don't use the SPIflash Library or instantiate a flash device. This advice was given assuming you had a full Moteino configuration, which included flash.
If your FTDI cable is not connected to a PC then I wouldn't use it as the power source to your Moteino - there could be many reasons why this hangs. However, I am curious to know how you know that your code hangs at flash.initialize() if you don't have a debug port attached (ie, the FTDI cable is plugged into a wall wart). In any case, if you use a wall wart, just use a direct USB A to wire or DC jack type cable.
See if it your Mote still hangs if you remove the flash code and power with wall wart and/or battery and let us know. Also, as I mentioned in this thread, simply connecting DTR to ground (the two outer pins on the FTDI connector - WITHOUT the FTDI cable installed, of course) sometimes resolves some power on issues.
Tom