An independent panel appointed by the Pentagon and Congress says Obama administration military cuts have made the U.S. too weak to meet global threats. It calls the cuts a 'strategic misstep.'

Retired Army General Bill McClain says it's a myth the U.S. spends too much on defense.

"It doesn't seem that way, probably, to most people; but that's actually true."

General McClain says our $4-trillion budgets are mostly spent on entitlement programs. He says cuts to the Navy are especially dangerous.

"The world depends on world trade and we depend on the water for that so if we can't keep the sea lanes free and guarantee it, we have a big problem."

The panel says years of military budget cuts have made our allies nervous; worried the U.S. can't properly respond to a crisis.

"The Army's gonna be as small as it has been since before World War II; the Navy's shrinking considerably -- at the same time other countries are flexing their muscles on the seas; for instance the Chinese."