We need to greatly curb the extent to which military contractors have unchallenged access to the federal budget.  This is not only an issue of channeling money needed for other priorities but also of the dampening effect that military spending has on the economy in general.  

In the wake of the fall of the Soviet Union a guy with strong history of advocacy for military spending and Seattle journalist (one hawkish the other dovish) combined to write a book on how military spending was having a much greater adverse effect on the US economy than might be expected.  In an oversimplification their argument: military spending produces resources that are economic dead ends (little or no multiplier effect) and that rarely transfer to civilian uses. At the moment I can’t recall the name of the book or the authors, but I probably could find them with some effort.  

With this and the current economic crisis in mind, I would say that Obama needs to reallocate resources to more important things than military hardware.  And, that is going to be very tough in the face of economic interests that are entrenched and well connected on Capitol Hill.  There is no silver bullet, but there is silver buckshot, and one piece of silver buckshot might be a new and persuasive look at how military spending is a drain on the US economy.