the government does not "hoard" ammo of any type, although they do need to stockpile and use munitions of all types for various reasons... none of them likely being the use on its own citizenry... I was a federal GAO auditor for several years (not the IRS kind by the kind that audited various government programs looking for waste and excess spending, etc.) and I was responsible for auditing the military munitions procurement program that was operated from the Rock Island Arsenal. The purchasing programs are based on certain levels of consumption during times of peace and times of conflict and to maintain certain stockpile levels at all times. Given the current global conflicts as well as the pending positions we may be soon involved in, the use (training and combat) has increased the government demand dramatically... as a result, the shortage of ammunition is more likely the result of manufacturers making a conscious decision NOT to ramp up production to meet the higher demand because they are not interested in investing additional capital in order to be able to meet that higher demand for an industry that the government is threatening to shut down (or at least control/take over)... the hollow point shortage is likely tied into this from the fact that the profits reaped from federal government contracts vastly outweigh the profits from consumer sales and if their is higher demand from both sides of the equation the manufacturers are more likely to devote their resources to satisfy the needs of the government before the needs of the consumer.

#1 The Hague Convention of 1899, Declaration III, prohibits the use in international warfare of bullets which easily expand or flatten in the body.
Why does Homeland Security need 1.4 billion rounds of ammunition?
Lee DeCovnick
#2 The Department of Homeland Security has purchased 1.4 billion rounds of ammunition- that is not a typo -- during the last six months. This includes 450 million rounds of .40 hollow point, 200 million rounds of .223 rifle ammunition, and 176,000 rounds of .308 168-grain hollow point boat tail (HPBT) that is used almost exclusively as ammo for sniper rifles.
From beforeitsnews.com we read:
Why is everyone all up in arms about the recent purchase by Homeland security of 1.4 Billion rounds of ammunition?
Our undeclared Foreign War in Iraq Consumes about 70,000,000 (70 Million) Rounds of Ammunition Each Year, which would take about 20 years to consume 1.4 billion rounds of ammunition ordered by the Department of Homeland Security alone, not including all the ammunition ordered by the weather service, Social Security, etc! 20 Years To Use All 1.4 Billion Rounds Of This Ammo?
http://www.americanthinker.com/blog/201 ... ition.html