Officials in Qatar and the United Arab Emirates are busy denying rumors that the Persian Gulf states are about to decouple their currencies from the stricken greenback.

However, according to the London Times, “investors are betting on reform and are rushing to buy local currencies as investment banks issue fresh calls for revaluation.”

Inflation is soaring in the region and frustration with the dollar peg is growing. In Qatar, inflation reached 12% last year, while UAE’s inflation hit 8%. And according to the Times, off-book inflation may run as high as 40% for some goods.

“The Gulf states aren’t the only ones to worry about,” says John Stepek.

“The foreign investors who have been buying US foreign debt may go on strike, or offload their holdings, as they see no end to the slump in the US currency.”

“You’d better tighten your seat belt and get ready for the ride,” says Sean Hyman. “If you live in the US, plan to save back some cash and trim the fat financially. You’ll be glad you did.

“As the dollar continues to sink in the near term, most anything priced in dollars will become much more expensive: gas, oil, electricity, gold, silver, food, etc.

“So watch your spending…because you’re going to see many around you in tough times.”