Money-Market Investments: A Double-Edged Sword

Saving money through investments in Treasuries and money-market funds can be highly beneficial for individual savers. According to recent data, these investments are currently generating a substantial $23 billion every month for savers ("Higher Interest Rates Are Here to Stay. What It Means for the Economy," Cover Story, Dec. 8). However, there is a significant drawback to consider.

Although these investments provide financial gains for individuals, they do not contribute to the overall productivity of the country. As we move forward with the prospect of longer-term higher interest rates, this lack of productivity gains may become a significant obstacle. The absence of government spending leading to productivity growth poses a major challenge that must be addressed.

Bonds: A Viable Option for Retirees

While the outcomes of such investments remain uncertain, I am inclined to seriously consider the Vanguard Total Bond Market exchange-traded fund. Notably, this fund offers a remarkably low expense ratio of only 0.03%. As I embark on this new chapter of life, exploring investment opportunities that align with my financial goals becomes paramount.

The Role of Gold in Relation to the Federal Reserve

The relationship between gold and the Federal Reserve remains an interesting topic for discussion. Further insights regarding this relationship are yet to be revealed.

The Seesaw of Gold and Faith

Gold and faith in central banks are like the opposite ends of a seesaw. When faith in the Federal Reserve and other central banks is strong, gold prices tend to be low. On the other hand, if the Fed abandons quantitative tightening due to extensive Treasury issuance, or if interest rates collapse to support struggling companies, gold loses its weight in this analogy.

By Gene Sweet, Chicago

The Silver Lining Playbook

Ransomware: Driving a New Cybersecurity Arms Race

Ransomware has introduced a financial consequence to running insecure information software, marking a significant turning point in history ("How Ransomware Gangs Are Fueling a New Cybersecurity Arms Race," Dec. 6).

This development could be the catalyst for improving software security and safeguarding Americans against cyberattacks from foreign adversaries.

The existing paradigm has failed to establish sufficient cybersecurity measures over decades, both within the U.S. government and companies under its jurisdiction. Ransomware may finally offer a solution by compelling software users to adopt more secure open-source alternatives or by pressuring regulators to shift the cost of attacks from helpless customers onto software companies.

By Andy Edstrom, Los Angeles