5% has become the new normal; the era of cheap money is truly gone for good

The 30-year U.S. Treasury yield has broken above 5% again, and the market has gradually accepted that high interest rates will persist long-term. The article states that the three pillars supporting half a century—cheap capital, cheap labor, and cheap energy—are all loosening simultaneously, and the direction of AI will become a key variable for future inflation. De-globalization, changes in energy patterns, rising labor costs, combined with slow-moving factors such as debt, geopolitical risks, and populism, are also increasing risk premiums. AI may either reduce inflation or increase it; investors need to adjust expectations and prepare for long-term high interest rates.