The quantities of manufacturing both ammo and reloading components has not been reduced.
Some reasons for the so-called shortage?
It's not just that many people are stocking up for their own use (or family).
Many other people simply buy up/mark up cheap WalMart ammo or whatever bottles/jugs of reloading powder and try to sell it on Gunbroker etc.
What I've noticed is that very little of the high-priced ammo on Armslist near Memphis is selling. The same ammo was there almost two weeks ago, at the same fixed prices.
One of these weeks, months, the high-priced sellers will get anxious and prices will steadily go downhill...If they want to sell it, and many buyers become patient.
A single seller on GB in July '09 listed about 45,000 rds. of Russian 7.62x39. The location was Keene, NH.