London Briefing/Chris Johns: Alastair Campbell's job title is communications director for 10 Downing Street. Most of us think of him as Tony Blair's chief spin doctor. But this week it was impossible not to flirt with very unflattering comparisons with either Svengali or Rasputin.

We have grown used to debating whether Gordon Brown or Tony Blair is in charge.

When it comes to the economy, we know that Gordon is the main man. The recent euro debate settled that one.

Mr Blair tries to take charge of everything else but is no longer seen to be making a very good fist of things since there isn't much left to be in charge of.

Spin has always been a big part of this government, for good and bad reasons.

Understandably, the administration feels the need to control its relationship with a generally right-wing and hostile media.

But this has run out of control; spin is now an ugly obsession.

One of the key reasons why all of this seems to have spiralled into something rather unhealthy is that an important check on government behaviour has quietly disappeared.

There has been a dramatic shift in the relationship between domestic politics and UK financial markets.

Mr Campbell has been on the defensive, responding to unkind suggestions that the government "sexed up" the infamous "dodgy dossier" of so-called intelligence on Iraq's military capabilities.

Now, Campbell is an ex-tabloid journalist, so the term "on the defensive" needs careful explanation. Imagine a half-starved rottweiler with a nasty headache and you will get the right idea.

The main target for Campbell's wrath has been the hapless BBC, a once venerable institution that finds itself, unusually, attacked from both right and left.

The obituaries for Denis Thatcher, Margaret's late husband, were revealing in all sorts of ways, but none more so than in their description of how some British businessmen of a certain vintage viewed the BBC as the PR arm of the Labour Party, itself considered to be a branch of the Communist Party.

Middle England is no longer afraid of reds under the bed but the BBC is as loathed by the right wing as ever. Now, with Campbell's attacks, it seems that everyone hates the BBC.

Perhaps New Labour feels let down by an old friend; maybe they expected more from the cronies they installed in the upper reaches of the corporation. The broadcaster must feel very well balanced and probably feels it is finally getting it right. Being attacked from all sides might be morally and intellectually uplifting but the BBC needs to watch its step. This lot can be very vindictive.

Joining the BBC in new-found unpopularity is, of course, the government itself.

Tony Blair has now fallen behind the Conservatives for the first time since anyone can remember.

It might just be a normal mid-term blip but Mr Campbell is taking no chances and no prisoners.

Hence the attacks on the BBC. The government clearly believes its problems are largely the fault of the media.

The rest of us suspect it might have more to do with schools, hospitals and taxes, but that is a very old-fashioned way of thinking.

A fascinating aspect about all of this is the way in which financial markets simply ignore it all.

The City is no longer the constraint on government action that it was.

Not so long ago, the prices of stocks, bonds and sterling would have gyrated with each and every one of the events of the past few days.

No longer, it seems.

Markets have clearly decided that domestic politics is just another version of reality TV.

Fun to watch, if you are that way inclined, but with very little connection to anything that matters. One aspect of "globalisation" that is little remarked upon is the way in which financial markets are becoming increasingly linked. Equity markets in Europe and the US seem to be joined at the hip, for example.

UK asset prices are set by developments overseas rather than by domestic factors. Domestic politics have become relatively unimportant.

The government has to worry far less about the City than any of its predecessors.

This new-found freedom can, of course, be used wisely or not.

But it means much more scope for the spin doctors.

Perhaps it is just wishful thinking on my part, but I think the government is in trouble.

I think Mr Campbell realises this.

The more he acts as if he is in charge the more I will be sure that panic is setting in.