I would say there is no competition between the Yuan and the USD, either the currency or the measurement.

The CCP have capital controls on the Yuan. This means it is never going to be used internationally since, to do so, it needs to spread. Open up the spigot to get the currency flowing out, and the wealthy move their money out of country, something capital controls fight.

Also, the entire international financial system is USD denominated even though there are no dollars in the system. It is a measurement like a kilometer or gallon.

As for the bad year, people say that every year. There will be good and bad. Economically, it is shaping up to see some headwinds globally but that is common. We have seen recessions before.

The real fireworks start when the sovereign debt crisis hits. That is when things will get really bad.