Here’s an excellent article by Paul Mason of Newsnight about the extraordinary events of the past week or so. More of this in class!
Outside the Murdoch circle knows the full answer, but I suspect it is quite prosaic: like the Wizard of Oz, Mr Murdoch’s power derived from the irrational fright politicians took from his occasional naked displays of it. The Kinnock “light bulb” headline was probably the signal moment. He was powerful because people believed he had the power, and that editors like Mrs Brooks and Mr Coulson probably had a file on everybody bigger than MI5’s, and so you should never, ever, cross them.