Oh, I forgot to answer your actual *post*. Durr. Anyway, I'm not sure about a larger military budget -- dear god, how high can it go?! but I think that we're going to see a military draft in this country pretty soon. It makes a lot of sense, really. The kinds of wars America will want or need to fight are going to require lots of bloody ground combat against low-tech, non-state enemies in places like Mogadishu and Fallujah. Predator drones are useful in such places, I suppose, but really you need tens of thousands of guys with rifles -- the more the better.
The US military, designed to fight other massive, high-tech states, currently has too many gadgets and not enough guys with rifles for these sorts of neocolonial scuffles, and recruitment numbers are dropping like a stone. Even post-dot-bomb, civvy life looks a lot better than dying for oil in Fallujah for $20K a year. But class stratification, of course, is accelerating evermore in the States, and pretty soon there will be enough desperately poor and permanently unemployed people that they won't so much mind being drafted; at least they'll be getting food and shelter, and the Army might actually be a more hospitable environment than the ghettoes and postindustrial towns these people will be born into. Plus, from the perspective of the government, it'll reduce spending on what minimal social services remain, and cut down on deprivation-fueled crime. Send that surplus flesh to Somalia!