I don't think you should panic
U.S. military budget
2000: $375 billion
2002: $425 billion
2004: $527 billion
2006: $561 billion
2008: $618 billion
2010: $687 billion
2012: $705 billion
2013: $662 billiion
As far as I can work out, the ambition is to cut defence spending back to something like 2004 levels (and hoping to achieve this by 2022)
It is true that the US Army and US Marines are being decreased in size - but that usually happens at the end of land wars
This document outlines the strategy. Basically,
1. There will be no US troops getting blown up in Afghanistan (an unimportant place which is economically worthless to the US).
2. There will be fewer troops in Europe (which - although important - isn't particularly worried about any military threats)
3. There will be more US military personnel doing useful things in Asia/Pacific (which is hugely important to the US economy and includes North Korea and China)
http://www.defense.gov/news/Defense_...c_Guidance.pdf