The budget remains the hot button issue in Washington, and cuts all across the board appear likely, except for defense. Military spending makes up approximately 20 percent of the federal budget, and will likely exceed $700 billion in 2011 – that’s 40 percent of the world’s total military spending. Where does all that money go to? Larry Korb, senior fellow at the Center for American Progress, and former Assistant Secretary of Defense under the Reagan administration explains.