Vol. 9 Issue 4 | Week of November 2, 2009 Level 2A

the national newspaper for kidsSee page 6.

Weak Dollar: Good or Bad?

Should the United States strengthen the dollar?

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yen > the type of money used in Japan

euro > the type of money used in many parts of Europe

currencies > kinds of money, especially the money used by particular nations

by Gerald Harris

In October, the value of the U.S. dollar fell to its lowest point in 14 months, compared to

the Canadian dollar, the Japanese yen, the euro, and other currencies. The weak dollar is posing a problem for America’s trading partners around the globe. “It’s a problem which has us worried,” Luxembourg Prime Minister Jean-Claude Juncker told reporters.

“Strong Dollar” vs. “Weak Dollar”What does it mean when we say that the dollar is “strong” or “weak”? It has to do with the

amount of foreign currency for which $1.00 can be exchanged. This is what determines whether the dollar is “strong” or “weak.”

Suppose you traveled to Europe in October of 2000. When exchanging your American money for European money to spend on your trip, you would have received 1.17 euro for each dollar.

However, if you traveled to Europe last month, you would have received only .68 euro for the same dollar. That is because the value

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The Current Events | Week of November 2, 2009 | Level 2A | Vol. 9 Issue 42

1. What does the diagram show about the U.S. dollar and the euro? Summerize this in words.

2. As of October 2009, which currency is of almost equal value to the U.S. dollar?

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of the U.S. dollar is weak — it will buy less of other currencies than it did before. You would now spend many more dollars for the same European hotel rooms, meals, and souvenirs than you would have spent in 2000.

Pros and Cons of a Weak DollarIn the sense that the United States buys and imports more products from other countries than it exports to them, a weak dollar is a problem. For American consumers, a weak dollar means that it will cost more to buy imported goods like oil, foreign-made cars, electronics, and anything else made in another country.

On the other hand, many experts agree that the weak dollar also helps the U.S. economy. This is because it is much cheaper for people in other nations to buy American products. In other words, American exports are cheap — possibly cheaper than goods made in other countries. People in those nations, therefore, want to buy American products. When American-made products are in demand, companies may hire more workers to meet that demand. These trends boost the American economy.

Tourists GaloreThe declining dollar is also helping the U.S. tourism industry. Tourism makes up a large percentage of the American economy — it employs more than 5.4 million people. Since the U.S. dollar has declined against many other currencies, more people from other countries are vacationing in the United States, rather than staying home. They also enjoy getting more for their money by shopping in America.

Effects on Europe Not all is well, however. Officials from the G-20, a group of countries that cooperate on economic matters, believe the weak dollar is hurting many of their local businesses and weakening their nations’ economies. Henri Guaino, a French financial advisor, said that the weakening dollar “is a disaster for the European economy and manufacturing sector.” European nations rely heavily on the income they earn by selling their goods in the United States and other nations around the world. And now, with a weak U.S. dollar, European goods are too expensive for most Americans to buy. As a result, European businesses are losing money. In addition, the

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TCE Inc.

The word currency comes to us from the Latin word currere, “to run,” as does a similar word: current. Think about ocean currents, electric currents, and the flow of money as it changes hands. What do all of these have in common? Send your answers to The “Current” Events. We would love to read your thoughts!

consumers > those who use or purchase a product or a service

industry > form of business activity

The Current Events | Week of November 2, 2009 | Level 2A | Vol. 9 Issue 4 3

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weak dollar encourages Asian nations to buy American goods rather than European goods.

At the upcoming G-20 meeting, scheduled for November 6th and 7th in Scotland, these mat-ters will be discussed in depth. European lead-ers will urge the United States to work together

with them to make the dollar stronger. Will the United States agree, since the weak dollar is actually helping its economy? Tense debate is expected. “I think there will be fireworks at the G-20,” says Stephen Jen, a British investor. “Dis-agreement over how to handle the dollar’s de-cline is very likely.”

by Jeffrey Dinsmore

On the morning of November 2nd, New York-ers will gather near the former site of the

World Trade Center for a unique celebration. At 8:00 a.m., a brand new naval warship called the USS New York will come to rest directly across from Ground Zero. In a traditional show of respect, the ship will fire a “21-gun salute.” The salute will be returned by New York City police officers, firefighters, and others.

Why does the USS New York deserve such spe-cial treatment? The answer lies within its bow.

The USS New York’s bow stem is comprised of 7.5 tons of steel that were recovered from the World Trade Center. The mammoth ship is a powerful tribute to the victims of 9/11 and the city that still mourns their loss.

About the USS New YorkThe USS New York belongs to a fleet of five ships known as “San Antonio-class Landing Platform Docks” (LPDs). LPDs are versatile ships that are used to transport airplanes, helicopters, boats, and troops. The 684-foot-long USS New York

American Spirit

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Ground Zero > here, the site where the World Trade Center stood

bow > front end of a ship

tribute > something that gives honor or shows gratitude

versatile > having many uses or abilities

1. Describe what is happening in the cartoon.

2. What do you think is the cartoonist’s view of the U.S. dollar? Do you agree? Why or why not?

Readers Respond1. In your own words, describe what makes a dollar “weak” or “strong.”

2. Identify who or what benefits from a weak U.S. dollar and why.

3. Is it in America’s best interest to work with G-20 nations to strengthen the U.S. dollar? Explain your reasoning.

Here is a surprising fact: U.S. paper money was formerly to be backed up by gold and silver. And it had the inscription “redeemable in lawful money at the United States Treasury or any Federal Reserve bank.”

This means that, until 1971, people could redeem their money for gold. The rate was $35 per ounce of gold. That has since changed. Now our dollars are called Federal Reserve notes; they are backed by the strength of our economy, not by precious metals.

The Current Events | Week of November 2, 2009 | Level 2A | Vol. 9 Issue 44

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Of Rats and Junk Food

Why are some habits so hard to break?

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by D. Baum

Have you ever wondered about the potato chip company’s advertising claim, “Once

you pop, you can’t stop!” What exactly makes it so difficult to refrain from eating too much “junk food”? Scientists from the Scripps Research Institute may have the answer. They have found strong evidence that such overeating may actually be a form of addiction in rats. The researchers think their findings may also apply to humans.

Questions Asked and AnsweredThe Scripps scientists wanted to find out whether overeating is indeed habit-forming in the way that illegal drugs are. They studied two groups of rats. One group was fed a diet of only nutritious foods. The other group was fed unlimited amounts of “junk food.” This group’s diet included popular American menu items such as sausages, cheesecake, and other

addiction > having a strong habit that causes physical or psychological pain if the habitual behavior is stopped

The Current Events | Week of November 2, 2009 | Level 2A | Vol. 9 Issue 4 5

high-fat, high-calorie foods that spell trouble for so many children and adults in our nation.

The rats in the “junk-food group” were soon eat-ing compulsively. As they continued to over-indulge on unhealthful food, the amount of pleasure they received from eating it decreased. As a result, the rats had to consume greater quantities of the food to obtain the same good feelings they had originally experienced.

Researchers discovered that these rats indeed began to behave like drug addicts. “This is the most complete evidence to date that suggests obesity and drug addiction have common [causes rooted in the brain],” researcher Paul Johnson told ScienceNews.

The researchers did not stop there, though. They began to offer junk food to both groups — but gave the rats an electrical shock whenever they ate it. The rats that were accustomed to eating nutritious food quickly gave up the junk food to avoid the dis-comfort of the shock. Those that had been eating large a m o u n t s of junk food could not restrain t h e m s e l v e s , however. They continued to eat the junk food, despite the shocks!

What is more, when the “junk-food group” was offered only healthful food, these rats chose to starve them-selves rather than eat it. “They [starved] them-selves for two weeks afterward,” researcher Paul Ken-ny said. “Their dietary preferences [were] dramatically shifted.”

Kenny summed up the study’s findings by stat-ing, “What we have are these core features of addiction, and these animals are [demonstrat-ing] each one of these features.”

Understanding AddictionDuring the Scripps scientists’ study, the research-ers monitored the “pleasure centers” in the rats’ brains to determine how sensitive they were. They found that these centers had become less responsive in the junk-food-eating rats. That is the reason they had to eat more and more junk food to experience feelings of pleasure. Their craving for junk food did indeed prove to be an addiction. And even when the rats began to eat a more healthful diet, their pleasure response was diminished for weeks afterward.

“Just Say No …”As with all challenges to our health and well-being, the best prevention for addictions is

not to start the behavior in the first place. That is, it is best to stay

away from substances and activities that

are known to be potentially ad-

dictive and harmful.

However, even if a person is already in the habit of over-

indulging, he or she can still make other choices. Engaging in en-joyable exercise, having a good

time with a friend, or helping others are some ways to keep from giving in when a craving strikes. Replacing the urge for some-thing unhealthful

or destructive with a posi-tive form of pleasure can be an effec-tive way to

manage hab-its that are out

of hand.

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Readers Respond1. Summarize the main finding of the recent study conducted by the Scripps Research Institute.

2. Make an inference about why each group received two such different diets.

3. Evaluate Paul Johnson’s conclusion that obesity and drug addiction seem to have elements in common. Is the evidence convincing? Why or why not?

compulsively > without control

overindulge > give in to one’s desires to an extreme degree

obesity > being extremely overweight

substance > matter, material

The Current Events | Week of November 2, 2009 | Level 2A | Vol. 9 Issue 46

by David Holford

On October 21st, the Obama administra-tion announced that U.S. officials will soon

make a rare visit to Burma, also known as Myan-mar. Burma is one of the world’s harshest dicta-torships. A military junta (pronounced: HOON tah) seized power in 1988. Since then, the junta has brutally suppressed dissent. When the Na-tional League for Democracy (NLD) won elec-tions in 1990, the junta refused to hand over power. It arrested the NLD’s leader, Aung San Suu Kyi (pronounced: awn san soo CHEE). She has remained in prison or under house arrest for most of the past 20 years. In 2007, the junta used the army to crush pro-democracy dem-onstrations led by Buddhist monks. Dozens of people were killed.

Sanctions on Burma The United States and the European Union placed economic sanctions on Burma in the 1980s and 1990s. More were imposed following the 2007 unrest. So far, this pressure has failed to convince that country’s rulers to change their ways. One reason is that neighboring China and Thailand continue to buy Burma’s natural gas,

one of its most important exports. However, the sanctions have nevertheless caused hard-ship among the people of Burma, one of Asia’s poorest nations. For this reason, Suu Kyi, who once supported sanctions, has changed her stand. She has even offered to help the junta get the sanctions lifted.

Obama’s Policy of EngagementThe upcoming mission to Burma is part of President Barack Obama’s policy of engagement with nations that the United States has long tried to isolate. Secretary of State Hillary Clinton says that the sanctions against Burma will continue. But she admits that they have not produced the changes America wants.

Kurt Campbell, Assistant Secretary of State for East Asian and Pacific Affairs, is expected to lead the mission to Burma. He recently told Congress that the Obama administration hopes that talks will produce better results. Campbell describes the upcoming visit as a “fact-finding mission.”

Mission to Burma

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Should the United States change its policy

toward Burma?

Getty Images

Burma’s junta chief Than Shwe reviewing an honor guard from his car on Armed Forces Day.

dictatorship > form of government in which the ruler or rulers have absolute power and cannot be voted out of office

junta > small group that rules a country

dissent > disagreement

engagement > sharing in each other’s activities

isolate > cut off

The Current Events | Week of November 2, 2009 | Level 2A | Vol. 9 Issue 4 7

It will include meetings with opposition leaders as well as leaders of Burma’s government.

The Debate in CongressObama’s new policy toward Burma has upset some members of Congress. California Con-gressman Dana Rohrabacher challenges the need for fact-finding. “We know all about Bur-ma,” he says. “It is not an unknown quantity. It has a vicious gangster regime.” Rohrabacher also questions the overall policy of engage-ment. By talking with the junta, “we are saying that they are a legitimate government to sit down with,” he argues. “They are not.”

However, Senator James Webb of Virginia supports Obama’s policy. “Our isolation of Burma [was] honorable,” he says. But he adds that its failure “is an example of what can happen when we seek to isolate a country from the rest of the world, but the rest of the world does not follow.”

Timing It RightSome observers believe that the junta’s harsh rule just might be softening. Senator Webb vis-ited Burma in August and met with the junta’s

senior general, Than Shwe (pronounced: th-ahn shway). That visit led to talks between Webb and Burma’s prime minister in New York in Sep-tember. Last month, Burma’s rulers allowed Suu Kyi to meet with U.S. officials to discuss the sanctions. The junta also announced that the first national elections since 1990 will be held in 2010. At a summit meeting of Asian leaders held in late October, Burma’s prime minister admitted that his nation needed to show it can hold free and honest elections.

Other Burma observers doubt that much has changed. General Shwe has already warned Burma’s political parties to avoid doing any-thing that will harm the interests of the state. The junta also recently added 18 months to Suu Kyi’s prison sentence. This extension will keep her under house arrest during the elections.

Assistant Secretary Campbell insists that no change in U.S. policy toward Burma will occur without clear signs of democratic reforms. He will also press for the release of Suu Kyi and other political prisoners. “Lifting or easing sanc-tions … without meaningful progress on our concerns would be a mistake and would send the wrong message,” Campbell says.

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Readers Respond1. Give two examples of how Burma’s government has discouraged opposition to its rule.

2. Compare the policy of sanctions with the policy of engagement.

3. Do you agree more with the opinion of Congressman Rohrabacher or Senator Webb? Explain.

4. Do you think that Burma is “softening”? Why?

S

EW

TAIWAN

VIETNAM

THAILANDPHILIPPINES

MALAYSIA

LAOS

INDONESIA

CHINA

CAMBODIA

BURMA

BRUNEI

BHUTAN

BANGLADESHRangoon(Yangon)

(Myanmar )

INDIA

Aung San Suu Kyi was awarded the Nobel Peace Prize in 1991. Because she was under house arrest, her children went to Oslo, Norway, to accept the award for her. She has used the $1.3 million prize to improve the health and education of Burma’s people.

1. Create a map key with a symbol that identifies the countries that purchase natural gas from Burma.

2. Mark that symbol in the appropriate countries.

opposition > here, a group that is not currently in power and might try to gain power in the future

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can carry three different kinds of helicopters, a V-22 Osprey aircraft, and up to 800 crew mem-bers and soldiers. It can reach a top speed of 24 miles per hour.

The motto of the USS New York is “Strength Forged Through Sacrifice. Never Forget.” This motto gains poignancy when you learn where the ship was built: Avondale, Louisiana, just ten miles from New Orleans. A year into the construction of the USS New York, Hurricane Katrina tore through the Gulf Coast, leaving many of the workers without homes. Despite the hardship, the workers soldiered on. The completed ship, which cost $1.2 billion to build, stands as a symbol of how the American

spirit can rise above tragedy.

Visiting the USS New YorkFollowing the November 2nd ceremony, the USS New York remains in New York City for ten days. During that time, the public is allowed to tour the ship. It will be officially commissioned by the Navy on November 7th. After that, the ship will return to its home port in Norfolk, Virginia.

Eight years after the September 11th attacks, the planned memorial at Ground Zero has yet to be developed. The arrival of the USS New York may provide a moment of closure for the city that suffered so many losses in 2001.

The Current Events | Week of November 2, 2009 | Level 2A | Vol. 9 Issue 48

EXECUTIVE EDITOR: Suri Roth

EDITOR: Ellen Appelbaum

TEACHER’S GUIDE EDITOR:

Charlene Kerwin Reyes

CONTRIBUTORS: D. Baum, Jeffrey Dinsmore, Gerald Harris, David Holford

ART DIRECTION: Lynn Russell

LAYOUT & DESIGN: Alison Epstein

GRAPHICS: Lina Gonzalez

Published by: TCE Inc. 1973 60th Street, Room 105 Brooklyn, New York 11204 1 (877) TCE-1560 www.TheCurrentEvents.com

No part of this issue may be reproduced or transmitted in any form or by any means, including photocopying, without permission. Please contact us for more information.

ISSN: 1550-5324 © 2009 TCE INC

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USS New York

The USS New York on its way to New York City.

poignancy > emotional impact

commissioned > placed into service

closure > drawing to an end

“Strength Forged Through Sacrifice. Never Forget.” — motto of the USS New York

Think about these words. What does it mean to forge strength through sacrifice? Based on your own knowledge and on what you have read in this article, plan and write a brief speech that could be delivered at the ship’s commissioning on November 7th. Explain how this motto sums up the process of building the USS New York, as well as its future role as part of the U.S. Navy.

Choose one of the symbols on the emblem and explain its meaning. Write your answer on the lines.