CNN Student News Transcript: March 14, 2008

(CNN Student News) -- March 14, 2008

Quick Guide

Congressional Earmarks - Learn about a controversial proposal to ban congressional earmarks.

Gobs of Gold - Discover which government holds the world's largest stockpile of gold.

Off the Beaten Path - Go Off the Beaten Path to see how one town ended an election stalemate.

Transcript

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

CARL AZUZ, CNN STUDENT NEWS ANCHOR: Hi, everyone. I'm Carl Azuz. You've almost made it to the end of the week. But before you start the weekend, check out this Friday edition of CNN Student News.

First Up: Congressional Earmarks

AZUZ: First up, the U.S. Senate votes on a proposal to erase earmarks for a full year. Now, what we're talking about here are projects that get added on to government spending bills. A lot of times, lawmakers set them up so that the projects, and the money that comes with them, go to their home states. The issue's important enough that presidential candidates John McCain, Barack Obama and Hillary Clinton all took time off from campaigning to take part in the vote. Kate Bolduan has more on the debate over earmarks.

(BEGIN VIDEO CLIP)

SEN. JIM DEMINT, (R) SOUTH CAROLINA: Funding the world toilet summit for $13.5 million. A study to determine if poultry litter can generate electricity, $225,000. The cowgirl hall of fame, $90,000. Indoor rainforest, $50 million.

KATE BOLDUAN, CNN REPORTER: A long list of pet projects, billions of dollars in so-called earmarks. Critics say they're a waste of taxpayers' money and are calling for a one-year ban.

DEMINT: When you got a problem, when you got an addiction, you have to agree you have a problem and get into rehab. Congress needs to get into rehab.

BOLDUAN: More than $18 billion went to nearly 13,000 congressional earmarks this year, according to budget watchdog group Taxpayers For Common Sense. Opponents have tried before to curb earmark spending, but now they say they have presidential politics on their side.

SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: I want to eliminate this wasteful and outrageous earmark and pork barrel spending.

BOLDUAN: Sen. John McCain is a longtime critic of earmarks. Senators Hillary Clinton and Barack Obama have recently signed on as well, even though they both have directed tens of millions of dollars in earmarks to their home states. But even with that support, it's shaping up to be a showdown in Congress. Opponents of the ban include powerful Democrats and Republicans.

SEN. JUDD GREGG, (R) NEW HAMPSHIRE: I think an outright abolition of earmarks is an abolition of the authority of the Congress.

BOLDUAN: They also say anti-earmarkers only point out the worst abuses, and a ban could throw out good projects along with the bad.

SEN. DICK DURBIN, (D) MAJORITY WHIP: When it comes to projects around my state and the rest of the nation, I don't think it's unreasonable for Congress to have some input in that discussion.

BOLDUAN: Democrats insist they've already slashed the number of earmarks since they took over Congress, and require full disclosure of spending requests.

SEN. HARRY REID, (D) MAJORITY LEADER: You have to list there's no conflict of interest, how much money. It's really in some detail.

BOLDUAN: So, what does this possible earmark ban mean for taxpayers? Some lawmakers say it would regain their confidence in Congress, while others say it would mean the loss of thousands of home state projects that lawmakers say are critical to their communities. Kate Bolduan, CNN, Capitol Hill.

(END VIDEO CLIP)

Word to the Wise

GEORGE RAMSAY, CNN STUDENT NEWS: A Word to the Wise...

bullion (noun) gold, specifically in the form of bars

source: www.dictionary.com

Gobs of Gold

AZUZ: And those bars are worth more than ever. The price of gold spiked up to a record high yesterday, and ended the day at just under $1,000 per ounce! Part of the reason it's doing so well is that the dollar isn't. According to experts, investors who are concerned about the health of the U.S. economy want to put their money in something stable. And what's more stable than a metal? So, with gold in such high demand, Jennifer Westhoven looks at who presently possesses the precious metal.

(BEGIN VIDEO CLIP)

JENNIFER WESTHOVEN, CNN REPORTER: It's a commodity that's been coveted throughout the ages in jewelry, art...

"GOLDFINGER" MOVIE CLIP: Goldfinger.

WESTHOVEN: On the silver screen.

"GOLDMEMBER" MOVIE CLIP: I love gold!

WESTHOVEN: The Oscar itself is plated with gold. But when it comes to serious amounts of gold, even the fabulously wealthy can't hold a candle to the world's richest governments. It's estimated they hold about 20 percent of the world's bullion.

DR. ROBERT JOHNSON, EURASIA GROUP: United Sates and European Union are significant holders of gold as an official reserve. There's been a lot of speculation about whether countries like China, Russia and the sovereign wealth funds of the Middle East will expand their investments and official holdings in gold, but so far those investments have been fairly limited.

WESTHOVEN: By far, the biggest holder of gold in the world is the United States, more than 8,000 tonnes of it. And one of the biggest stores of gold is right behind me, at the Federal Reserve of New York in lower Manhattan. Billions of dollars of gold is stored and guarded for other countries. It's in an underground vault.

The U.S. has almost three times the gold reserves as second ranked Germany. The IMF third, followed by France and Italy. One country that has seen its holdings shrink dramatically: Britain. It sold off much of its horde between 1999 and 2002, when gold was trading at a fraction of its current price. Talk about bad timing! These days, gold investment funds hold more bullion than the Brits. These funds are together the world's seventh-largest holders of gold overall and a major force driving prices higher. Seems like everyone these days wants a piece of gold, and not only as a hedge against inflation. It's one of the few hot markets out there.

LEWIS GRASSO, MILLENNIUM FUTURES: People are looking at the securities industry and saying, "Do I want to own banks? Do I want to own any stocks?" No, they are looking at it saying there's a diminishing return there. They can't put their money into bonds, because there is a diminishing return there. So, where do they go? They go to wherever they can get the best return on their investment.

WESTHOVEN: But in the future, the real growth in gold buying could one day come from emerging markets. They're holdings may be modest now, but...

JOHNSON: Those countries, through petro dollars and through the Chinese economic boom, have accumulated such large foreign reserves, the market has been speculating that they're likely to diversify those exchange holdings into gold as a hedge, the same way other private investors have done over the last few years.

WESTHOVEN: If that happens, $1,000 for an once of gold could one day seem cheap, as a new generation of global Goldfingers move in. Jennifer Westhoven, CNN, New York.

(END VIDEO CLIP)

Shoutout

RAMSAY: Today's Shoutout goes out to Mr. Garner's American Government classes at Harlem High School in Harlem, Georgia! Who's face is on the front of the new $5 bill? If you think you know it, shout it out! Is it: A) Alexander Hamilton, B) Thomas Jefferson, C) Abraham Lincoln or D) Aaron Burr? You've got three seconds -- GO! The new currency is graced by Honest Abe Lincoln --honest! -- same as the old. That's your answer and that's your Shoutout!

New $5

AZUZ: Same face, but a new look for the $5 bill. The U.S. Treasury's adding some security features to confound counterfeiters. Hold the new money up to the light, and you'll see the number five on both sides of Honest Abe's mug. This isn't our first financial facelift. The 100, 50, 20 and 10 dollar bills have all been updated in the last 12 years.

Promo

AZUZ: In the CNN Classroom Edition: Broken Government: Scorched Earth, correspondent Miles O'Brien looks at the impact that certain government legislation has had on the environment. Our accompanying curriculum guide gives students the chance to identify local environmental issues and research possible solutions. The program airs this coming Monday on CNN, and you can find our guide at CNNStudentNews.com.

Off the Beaten Path

AZUZ: And finally, when you and your friends have to draw straws, what's your plan of action? Flip a coin? Rock, paper, scissors? Maybe actually draw straws? Well, one town has a law about settling showdowns. It's the kind of story you'll only find Off the Beaten Path.

(BEGIN VIDEO CLIP)

CARL AZUZ, CNN STUDENT NEWS: Estancia, New Mexico, has an interesting way of dealing with political standoffs: poker. It's not gambling. It's literally a tiebreaker when two town trustee candidates get the same amount of votes!

This wasn't the first time this happened. In 2006, an Edgewood office-seeker -- seen here in a sweet bolo tie -- pulled the high card out of a deck, winning the office of mayor! For this woman this time around, all it took was a pair of nines to convince officials that the trustee job was in the cards.

If you're the type who likes purebred, pedigree pets, you've come to the wrong place. San Diego recently crowned its ugliest dog, and the competition was fierce. You can tell it's only local, though; none of these uncomely canines comes close to comparing with this diminutive disaster, who not too long ago lapped up the title of world's ugliest dog.

Here's a spin on an ugly dog. This profusely pink poodle's possessor purportedly plied beet juice and Kool-Aid to stain the canine. Now why, you may ask, would anyone want a miniature poodle, much less a pink one? The owner said she dyed "Cici" to raise awareness for breast cancer. Her local Humane Society said this ain't the way to do it. A city code says "no person shall dye or color live fowl, rabbits, or any other animals..." That includes miniature poodles! After warning the woman several times, the Humane Society added a $1,000 fine to the cost of all that wasted Kool-Aid.

(END VIDEO CLIP)

Goodbye

AZUZ: Don't know where she got that idea; we can't make heads or tails of it. But it is time for us to head out. So, enjoy Pi Day today. Get it, 3.14? Ask your math friends; they'll explain it to you. Have a great weekend, and please join us again next Monday on CNN Student News. E-mail to a friend