Illegally debasing Sterling

The Bank of England's primary monetary objective is to maintain price stability. This is clearly stated in the Bank of England Act 1998.

Money is one of humankind's great inventions, but it relies crucially on confidence. History - across civilisations, across the ages and across the globe - has confirmed time and again that printing money undermines price stability. However spun, printing money destroys confidence and discourages universally beneficial behaviours; behaviours such as deferring satisfaction and planning for the future. It also steals from people who have been prudent, not least pensioners who are ill equipped to defend themselves. "Inflation violates contracts and property rights; it creates uncertainty and mistrust. Its costs – economic as well as moral – are far greater than its benefits" (http://www.cityam.com/news-and-analysis/allister-heath/inflation-undemocratic-stealth-tax).

Following the Bank of England's printing of £200bn in 2009 inflation rose and Sterling depreciated. Inflation over the two years between July 2009 and July 2011, as measured for example by the RPI, has averaged about 4.9%pa, nearly two and a half times the BoE's 2%pa target.

Despite it's own explanation of 'Quantitive Easing' (http://www.bankofengland.co.uk/education/inflation/qe/video.htm) the BoE has not, since 2009, taken the steps necessary to meet its price stability objective.

The law is very clear: the BoE's primary focus must be price stability. Economic policy is the responsibility of politicians, people who are accountable to the electorate. The BoE is not democratically accountable. The law does not permit it to put price stability second to any other consideration.

Inflation is still rising fast but the BoE decided in October 2011 to print yet more money, another £75bn, ostensibly for economic policy purposes; to encourage economic growth. This, despite the 1998 Act specifically prohibiting the BoE from putting economic policy ahead of monetary stability.

Parliament must bring the Governor of the Bank of England to account for his organisation's failure to meet its primary monetary objective and, unless he and the MPC recommit publicly to carrying out their statutory duty, they must be replaced by people who will.