I am very sorry you are going through this. It can be very difficult when married couples disagree on money. My mom was like your wife, but not nearly as bad. She would buy these ridiculously expensive baskets, and she shopped all the time. Drove my dad insane. In my marriage, both of us are minimal spenders, but my husband keeps too much. He has stacks of valentine's day cards from the second grade and hundreds of thousands of baseball cards.
You need to take control of your life. You wouldn't give money to a drug addict, would you? Take control over the finances, as much as you can.
This isn't to punish your wife. If you're out for revenge, it's best you keep doing nothing. Because this is about protecting her, your marriage, and your home. It might be hard not to look at her as an antagonist, not to blame her. But remember that lashing out at her won't fix the problem.
My husband never let it get as bad as your wife. I have on one or two occasions forced him to throw out stuff-- or rather he watched while I did it. If that makes me the worst wife in the world, oh well. I couldn't continue to see our office closet stuffed with the coins he'd saved (and I'm not talking about valuable coins, but regular nickels, and cups filled with state quarters, ect.). At the time, he told me it physically hurt him to watch me. Even though he didn't show it, he was so upset. However, years later, he can't remember why it bothered him. But I still have to talk him out of new collections all the time. I have to stay in complete control over the house all the time, not because I want to, but because our household, our marriage, and my sanity will collapse if I don't. Right now I'm staring at about a hundred envelopes my husband has been keeping and am thinking I've let it go too long again.
Your wife sounds like she has an illness. Dumping all the junk is only a band-aide. It might feel satisfying as all get out, but it can cause problems if not done right. If you don't get her help, the junk will pile back up. And if she is feeling unstable at the moment, you could really be causing her emotional harm. All that stuff is a crutch for her. It's filling a void.
Get her to a doctor. This isn't something you can plead with her about, or lecture her about, or discuss with her. You need third-party intervention, and you need it now.
Wishing you the best.