The annual Inner Circle dinner allows local press dignitaries to amuse themselves with skits gently teasing a cooperative Mayor, who usually appears in them. This weekend’s version had a The Little Mermaid theme, with Bloomberg ruling an underwater kingdom called “NY Sea.” (They get $500 a plate for this, folks — or don’t: Newsday said attendance “appeared to be down this year, presumably due to the recession“). The big deal was the appearance of Caroline Kennedy, who enjoyed/endured some yuks at the expense of her Senatorial campaign (sample: CK, “I wanted to be Senator in the worst way.” Ted Kennedy impersonator, “And that’s how you went about it.” No word as to whether Ted was portrayed a la Howard Stern). More of the comedy gold here. Photo (cc) ragesoss.