Imperial Indices

An index to keep your eye on: the price of ammo. It seems post 9/11 police spending, the military's demand for arming soldiers in Iraq and Afghanistan, and China's insatiable demand for metals has driven up the price of ammunition. Domestic gun owners, fearing shortages, have begun hording, driving the price even higher: (via Dallas Morning News)

Manufacturers dramatically ramped up production after the U.S. invasion of Afghanistan in 2001, producing about 1.5 billion rounds last year – more than 3 ½ times the number manufactured in 2001, said Gale Smith, a spokeswoman for the Army's Joint Munitions Command Center in Rock Island, Ill.

But they struggle to keep up with the demand as troop deployments continue in the Middle East. Military spending on small-caliber ammunition increased from $242 million in 2001 to $688 million in 2006.

The ammunition business is also feeling the pinch because of the rising price of global commodities such as copper, brass, nickel, steel and lead.

For instance, China's torrent of construction has added to its manufacturing capacity. And the country is hungry for resources to feed its growth. The components needed to manufacture ammunition are also used for laying power lines and adding buildings to wider skylines.

A price driven by domestic fear, military overreach, and the rise of China.