Compare us to countries like Russia, UK and it's more like a factor of 1.5 difference and still only about a 3 times difference compared to China in military expenditures, rather than a factor of 7 or 8 or whatever it is. So yeah I'd say that's a bit less absurd. At least puts a bit more perspective on it.
We're not in a financial crisis due to our military spending. It's not that much higher than comparable countries when viewed as a percentage of GDP. And this is the #1 thing the US federal government should be spending money on. The country can clearly afford it, while affording to pursue its other endeavors if it so chooses. I mean the only reason we are in such a bind financially right now is because of recent economic collapse.
I agree that we can cut defense back some, but the US being the overwhelming military force is good for the world as a whole. It brings a sense of security to those more democratic countries and allows the world economy (The 2nd most important issue right behind defense) to prosper. And you never know what the future may hold. Also, a lot of money is spent on making this country the most advanced technological military. That costs a ton of money to stay on top of that, but it also saves a lot of lives. I agree that there is a lot of fat to be cut, but I think we need to be careful when we throw these graphs out there and say... zomg we can halve our military spending and still be Team America.