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It was called the Chipping Norton set, an incestuous collection of louche, affluent, power-hungry and amoral Londoners, located in and around the Prime Minister's Oxfordshire constituency. Brooks and her husband, the former racing trainer Charlie Brooks, live in a house scarcely a mile from David and Samantha Cameron's constituency home. The two couples meet frequently, and have continued to do so long after the phone hacking scandal became well known.
PR fixer Matthew Freud, married to Mr Murdoch's daughter Elisabeth, is another member of this Chipping Norton set. When Mr Cameron bumped into Freud at Rebekah Brooks's wedding two years ago, he and Mr Freud greeted each other with exuberant high-fives to signal their exclusive friendship.
The Prime Minister cannot claim in defence that he was naively drawn in to this lethal circle. He was warned - many times. Shortly before the last election he was explicitly told about the company he was keeping. Alan Rusbridger - editor of The Guardian newspaper, which has performed such a wonderful service to public decency by bringing to light the shattering depravity of Mr Murdoch's newspaper empire - went to meet one of Mr Cameron's closest advisers shortly before the last election. He briefed this adviser very carefully about Mr Coulson, telling him many troubling pieces of information that could not then be put into the public domain.
Mr Rusbridger then went to see Nick Clegg, now the deputy prime minister. So Mr Cameron and Mr Clegg - the Prime Minister and the Deputy Prime Minister - knew all about Mr Coulson before last May's coalition negotiations. And yet they both paid no attention and went on to make him the Downing Street director of communications, an indiscretion that beggars belief.
So the Prime Minister is in a mess. To put the matter rather more graphically, he is in a sewer. The question is this: how does he crawl out and salvage at least some of his reputation for decency and good judgment? This is a potentially deadly moment. If the Prime Minister plays his cards wrong, his public image will change in a matter of a few days. From a popular and respected national leader, he will come to be defined by his ill-judged friendship with the Chipping Norton set. This kind of personal degradation has happened before. By the end, Harold Wilson was irreparably damaged by his friendship with dodgy businessmen such as the raincoat manufacturer Lord Kagan.