I think Fred Thompson has it figured out pretty well.
http://blip.tv/file/1528079
Trying to fix problems caused by excess consumption with more spending is like telling a fat guy that the way to lose weight is to eat more donuts.
States are constitutionally bound to balance their budgets each year. They can either raise taxes or cut spending if they come up short. But the federal government has no such oversight AND they own the printing presses that make the money. So if they need extra money, they just print more!
In a way, that's exactly what they did with the stimulus package this past summer. The feds essentially "borrow" the money from people via treasuries, which are like CDs for large corporations and the rich. They'll issue X numbers of billion more in treasuries, and then sell them to wealthy people and institutions around the world.
Critics have said that it's nice of your grandkids to pay for you getting a check -- which isn't too far off from the truth. Bonds and treasuries are paid back over 30 years, so it really is the next generation that gets stuck paying for the stimulus package