Can't we just ditch the dollar if it gets bad? I mean yuan is right there and looks pretty great!
I would hedge if I can and if it makes sense to your individual situation. Unfortunately, it may not be practical for many living in USA.
The dollar's been going up relative to other currencies because people are scrambling for cash to pay off their debts. There's an overwhelming of US denominated debt.
Yuan is also bad because its been printing like crazy recently. There's a pointless currency war going on and the people that suffer are the average joe.