cut the military defense budget by a third and funnel that money into nothing else other than paying the country's debt.

The military budget does not need to be the size it is now when the US is not in any imminent REAL danger from other countries. No amount of military defense will stop a terrorist attack, that can solely be done by citizens being aware and other types of security at a more local level.
What we need now is to use that money to fix our economy starting with our trillion dollar debt. The US economy will never be able to recover fully and truly be fixed when spending more money hurts us more than helps.