text: Good morning. Here’s your Early Warning for Friday, 03 December 2021.TODAY’S BRIEFING:Biden floats mandates for domestic travel China: U.S. ramping up spy planesSupply chain, inflation crisis hitting grocersU.S., EU officials realistic about China disruptionFlorida State Guard activated, first time since WWIIIn Focus: A look into a worsening NATO-Russia conflictFar Left Activity Rollup & OutlookUpcoming Event CalendarSITUATIONAL AWARENESSBIDEN FLOATS DOMESTIC TRAVEL VACCINE MANDATES: The White House is considering mandating vaccinations for domestic air travel following the discovery of the Omicron variant in the United States.”I would say that nothing is off the table, so, including domestic travel,” said Press Secretary Psaki when asked about future rules. House Democrats introduced two bills, which could pass along party lines as they are currently written. The Department of Homeland Security could be tasked for enforcement either by Congress or Executive Order. (Analyst Comment: Some 30-40% of the U.S. population remains unvaccinated, so this mandate would likely have catastrophic consequences both for the airlines and broader economic and market conditions. The Biden administration has repeatedly disregarded court injunctions over his pandemic executive orders, indicating the administration’s willingness to mandate unconstitutional actions. – D.M.)US SPY PLANES MAKE RECORD NUMBER OF SORTIES AGAINST CHINA: U.S. surveillance planes carried out a record number of sorties along China’s coast during the month of November. According to a Chinese think tank, U.S. surveillance and maritime patrol aircraft conducted 94 close reconnaissance flights along China’s coastline, a 30% increase from previous months. A majority of the flights were conducted by U.S. Navy P-8 Poseidon maritime patrol aircraft. (AC: U.S. forces in the Indo-Pacific are keeping a close eye on Beijing’s activities as China’s belligerent language toward Taiwan increases and Russia masses forces on Ukraine’s borders. Last month Russia and China conducted large-scale joint naval exercises in the Pacific and Sea of Japan. This week Russia deployed new coastal defense units armed with SS-N-26 cruise missiles in the Kuril Islands, 150 miles northeast of Japan’s Hokkaido Island. This hints at the possibility that Russia and China are coordinating their activities for mutual benefit.- M.M.) GROCERS AFFECTED BY SUPPLY CHAIN CRISIS: American grocery retailers are experiencing reduced profits due to domestic supply chain issues. Kroger reported a 14% sales boost due to the home-cooking boom associated with COVID restrictions and inflation-weary consumers looking to stretch their limited budgets. That boom hasn’t passed onto profits, as Kroger also reported a 24% decrease in profits due to higher costs associated with disrupted supply chains. Due to delayed orders, Kroger and other retail grocery giants have to keep more stock on hand, resulting in more required warehouse space and increasingly higher costs for transportation and handling services. Those costs are being passed on to the consumer. (AC: The U.S. is at the front end of a major supply chain and inflationary crisis. Without significant efforts to reduce the root causes of these issues, monetary and regulatory policies, this spiraling crisis will likely continue to impact working-class Americans for the next several years. – M.M.)U.S., EU OFFICIALS REALISTIC ABOUT CHINA DISRUPTION: On Thursday, U.S. Deputy Secretary of State Wendy Sherman and European Union diplomats voiced strong concern over China’s “problematic and unilateral actions” in the South China Sea, and stressed the need for close contact to manage “competition and systemic rivalry” with Beijing. (AC: U.S. and EU officials are concerned about their supply chains and remain realistic about the catastrophic economic impact of a conflict with China over Taiwan. – M.M.)