25.7.05

SUPPLY AND DEMAND. Indepundit links to Michael Yon's embedded coverage of a raid on a weapons cache in Mosul, Iraq. Scary stuff. But note this:
There are tons of explosives and munitions here in Mosul, with more streaming in every day, though mounting evidence strongly suggests this flow is abating. For example, the street price of 60mm "mortar bombs" was about $3/shot 9 month ago. Now it’s up nearly seven-fold to over $20. Car bomb incidents in Mosul, while still causing major damage to both military and civilians, have been declining. Whether this is a temporary dip or steady trend remains to be seen. Even if the ongoing flow were completely cut off, there is still a deep well of materiel on hand.
Fewer incidents and a higher price for the ordnance. For the sake of our guys, and for the civilians in Mosul, let this be a leftward shift of the supply curve for ordnance.

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