Friday, March 30, 2012

What's behind government's big ammo buys?

A recent big government contract for pistol ammunition, and bid requests seeking evern more ammo for the Department of Homeland Security and the Department of the Interior, lead some to speculate the government is prepping for large scale unrest.

As long as we're speculating, let's consider some other possibilities.

Ammo has a long shelf life. DHS and other government agencies may be stockpiling it as a hedge against currency devaluation or even hyperinflation.

What if the dollar collapsed and government credit was suddenly no good?  Planning for that scenario might include having vital assets warehoused and ready. An extra hundred million (or two hundred million) rounds of ammo might come in handy.

And what raw if material shortages, or spikes in the price of key ammunition components, someday slow production lines or bankrupt government ammo suppliers? If key contractors go belly up, your U.S. government would want to have stockpiles in place to fill the gap until new suppliers can be found, or until a bailout is put in place to get the old ones producing again. Is this a contingency now on the tables of government planners?

Another possibility: Government is taking extra stock and dispersing deeper inventories around the country. This might keep supply lines to security agencies intact if disruptions by man-made or natural disasters made it hard to get shipments in our out of impacted disaster areas.

Again, just thinking aloud here. I can't jump to conclusions about what the government's primary motives are for its recent ammunition shopping sprees. I will say some of it seems definitely out of the norm with the past. Suffice it to say, something has apparently changed in the minds of government security planners. It's just too soon to tell exactly what that something is.

Previous postings: 
U.S. Department of the Interior also buying ammo
Now DHS is buying rifle ammunition
Hey Look: Big Sis is buying (more) ammunition

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