And Iraq has chemical weapons, and Iran is a dangerous nuclear power, blah blah blah... Isn't $500 billion a year (50% of the federal budget!) enough for you people?
Anyway, the fraction of the budget is really besides the point. We spend an inordinate amount of money on the military, and there is no viable threats to defend against. China is the best pick because they spend the second most money ($85 billion), but can we legitimately think that we'll go to physical war with such a huge trade partner?
Our military is funded by campfire stories and yellow press.