Since when can you get out of huge national debt by creating trillions of dollars of new debt

Since when can you get out of huge national debt by creating trillions of dollars of new debt?  It all really is so backwards and skewed as to sound like absolute nonsense when some of this economic policy is explained.  [And the government is going to] bail out debt ridden states  [so it can] get in there and control the people.  Sarah Palin, June 4, 2009

[http://www.realclearpolitics.com/video/2009/06/04/palin_government_wants_to_control_the_people.html]