3/18/09 Update: While we’re ecstatic to hear that the NRA-ILA and a couple of good politicians have rectified this wrong, there’s still merit to this particular blog below in showing just how vulnerable we are to the minds and wills of a select few.
I would suspect that there are very few readers who do. And that’s a huge problem with the latest twist in the government soap opera.
As you may know, Obama previously proposed as a Senator that ammunition would receive a 500% tax hike. He did so as a crafty way to essentially take away our guns. Obviously, without ammunition, gun owners had better get good at throwing our firearms at an assailant or using them as batons without ammo. You and I both know that with his penchant for taxing the American people worse than any president ever (even through the liability of his spending packages), he’s not likely to get past a deaf and moot Congress this proposal for a 500% tax hike on ammo. So what does he do? Nothing. He doesn’t have to do anything because his Secretary of State is interpreting a Department of Defense directive to favor this new administration’s distaste for guns. And it’s done without Congress having any say in it. As of June 11, 2008, the Department of Defense is to no longer allow the military to sell fired casings to ammunition remanufacturers until they have been “mutilated”, aka shredded into scrap brass.
Let’s break this down a little bit.
In order for you to shoot, you have to have ammo. Duh, right? Bear with me here. When you practice shooting, you will typically use remanufactured ammunition because it’s less expensive. For example, 1,000 rounds of 9mm ammo (115 grain) which is remanufactured costs $207, while new ammo, 9mm (115 grain) costs $269 at a bargain price. So the savings can be substantial. The key to the pricing advantage of remanufactured ammunition is that the remanufacturers are able to buy their once-fired casings primarily from the military. As you can imagine, the military uses a LOT of ammo and due to their rules they can only use new ammo. This makes them an ideal source from which to purchase used casings. However, now that the DOD has determined that they are only permitted to sell their ammo casings AFTER they have been shredded, this means a whole lot to your wallet.
1) Yes, the “remanufactured” ammo will be more expensive (as if the past year of price increases haven’t been bad enough.) The reason being is now there is an extra step in the process in order for the remanufacturers to have foundries turn the shredded brass (and other metals) into the casings they need. The reason why I put the “remanufactured” in quotation marks is that it’s doubtful to me that the new product should be called “remanufactured” as opposed to new since this additional process entails what new-ammo manufacturers have to do to produce their ammo.
2) Your tax dollars now pay for the shredding of the casings which the military will now perform on all of their casings prior to selling it.
3) The remanufactured ammo represents approximately 65-75% of the ammunition market among civilians AND law enforcement. Law enforcement regularly uses remanufactured ammo for their target practices. Thus, now law enforcement is paying a higher price either for the remanufactured ammo, or a higher price to buy new ammo. Guess whose tax dollars pay for that?
4) Due to the interpretation of this DOD directive, there are a great deal of ammunition remanufacturers who will have to lay off a sizeable portion of their employees. Hello, unemployment. Hello, extra foreclosures. Hello, extra bankruptcies.
5) This all presumes that since the casings are being shredded they will still be sold to the remanufacturers. This is doubtful as China is the largest buyer of such metals from us in its shredded condition. Don’t think for a second that they won’t get first crack at buying this shredded brass. After all, we owe them for buying up so much of our debt, right? This means that we may have put out of business ALL of the remanufacturers in the U.S. with this one strategic directive. If the remanufacturers go out of business, then we have the small number of new-ammo manufacturers to provide all the rest of us with ammo. And the military gets first shot in front of any buyer to obtain their ammo.
Now think about this economically. You have what used to represent about a third of the ammo sales in the U.S. and now they are the primary source to handle nearly all of the ammo manufacturing. That’s called a serious supply-and-demand problem. If you talk to anyone who buys ammo, you will undoubtedly hear stories of empty shelves, and hard-to-find ammo. Are you starting to see why ammo is so hard to obtain now and why prices have increased substantially? Expect an even greater supply-and-demand imbalance as the dominos continue to fall, folks.
So why do I ask if you have enough ammo for 4 years? Because if you don’t, that situation is not likely to change unless this administration reigns-in how the directive is being interpreted, or an administration change occurs four years from now. It won’t matter how much money you have. You simply won’t be able to buy enough with the military standing in line in front of you. NOW some of you may know why I predicted that there would come a time when a bucket of ammo would be worth more than a bucket of gold…on so many levels. (see www.preparednesspro.wordpress.com)
Clearly the economists who thought this one through are on the same team as those who are running Wall Street and are devoid of much in the form of patriotism or intellect.
See the link below the draft of this directive.
|Copyright 2009 Kellene Bishop. All rights reserved.|
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