Unfortunately, Madison wrote this long before the federal government controlled 25% of the country's economy. the federal government already uses force to extract this economic power from it's citizens - through the force of the IRS. It now can simply threaten to withhold some of this money from the state, and this usually will assure compliance to its wishes.
We got some good ideas in the legislators of Florida and a number of other states about how we could hijack that income stream and escrow it.
If we start slowly enough and get some congressmen on our side we can slowly move Washington into a position of accepting this. If we solidify this process by way of Constitutional amendment we can reverse the flow of power back to the people.