It's not absurd given how the ranking is developed, it's just the FIFA ranking is and has historically has not meant a judgment as to which team would win the next important match on a neutral field. Germany brings it top squad, or even it's next best squad, to play the USA's top squad in Africa or Asia, and there's no way the USA would be favored despite ranking 10th and Germany being 16th. The ranking is more a recognition of good performance in recent major internationals. I'm guessing the USA's failure to qualify for the last world cup has fallen out of the ranking factors, and the failure to qualify for the Olympics doesn't count because it is U-23.