Cameron is under a number of illusions, he thinks he and his close bunch of sociopaths are in fact competent, he thinks he has a chance of winning this years election for popular policies, he thinks he is "rather good at playing Prime Minister", he thinks he is the "Heir to Blair".
He is correct with the Heir to Blair claim, he is despised, hated in fact, is the head of a bunch of snakes that would sell, bribe, lie, and commit treason as easily as normal people breathe, he has (following Blair policies) set a course to destroy healthcare, social security, defense (the once formidable British army is around 80,000 strong, the once mighty Royal Navy is no more than a coastal defence force, the RAF could take on anyone for about half an hour). Education, police etc
He aspired to be Blair even to the point of wanting to declare a war upon Syria, yet got humiliated and slapped down by Milliband who will be the next Prime Minister (who will have to stop the Borat impersonations and act like someone else)
Cameron (and his cabinet) have all the worse traits of Blair but none of the intelligence, he is a pampered arrogant marshmallow. A throwback to the days of Empire when the untalented family retard was sent off to be in charge of some rock somewhere.
Are they aware they are deep trouble?, yes, do they know why? or how to deal with it?.....they do not.
Martial law? along with anything else is completely possible with this bunch of misfits in charge