Even more dangerous than Byzantium’s blackened reputation in the West, however, were the deteriorating relations with Venice. The Italian city-state had built up quite a commercial empire largely at Byzantine expense, and its increasingly arrogant attitude was unacceptable to the rank-and-file native merchants whose trade was being strangled. One could hardly walk the streets of the capital without running into an insufferable Venetian, and there were many who wished the emperor would send them all back to their lagoon. Surely an empire as glorious and mighty as Byzantium didn’t need to have its merchants crowded out by foreigners and its wealth diverted to some far-off city. John the Beautiful had tried to curb Venetian influence by refusing to renew their trading rights, but he had only succeeded in starting a war in which the hopelessly decrepit Byzantine navy couldn’t even participate. After a few months of having his coasts burned and trade disrupted, John swallowed his pride and gave in to Venetian demands, having accomplished nothing more than increasing the bitterness on both sides. His son Manuel as usual had better luck. In 1171, the emperor, in an act equal parts foolishness and bravery, simply arrested every Venetian in the empire and seized their merchandise, ignoring the outraged protests. The Venetian ambassador Enrico Dandolo was indignantly recalled (though not before losing the use of an eye), and the powerful navy took his place. Once again, the two nations were at war, but this time the Byzantines didn’t even have a navy, since John had disgustedly cut funding to it several years before. Incredibly, however, Manuel’s luck held. The plague broke out among the Venetian ships and the war effort collapsed. The poor doge returned to Venice—bringing the plague with him—and was brutally killed by an angry mob.
The Venetian stranglehold on the empire’s sea commerce was broken, but it was a Pyrrhic victory. For the moment, the republic was content to lick its wounds and nurse its bruised ego, but memories were long on the Venetian lagoon. Thirty-two years would pass, but Venice—and Enrico Dandolo—would have their revenge.
Buoyed by a certain amount of grudging international respect, and now seen once again as a great power of the Aegean and the Balkans, Byzantium paid little attention to the animosity that was building against it. Seemingly capable of raising vast armies by “stamping its foot,” the empire had cowed its enemies in the East and imposed its will over its provinces in the West. Manuel was so confident of its power that he had even written to the pope, offering in effect to act as the sword arm of the church. But the strength of Byzantium was largely an illusion, built by the smoke and mirrors of three brilliant emperors. The erudite and flashy Manuel may have looked every inch an emperor and impressed all he met with the breadth of his learning, but his victories lacked any real substance. The crusader princes and kings promised him allegiance, but that disappeared with the departure of his armies; and though the Turks had become his vassals, that only lulled the empire to sleep. Without Asia Minor restored to the empire, Byzantium lacked the resources for a permanent recovery, but with one calamitous exception, none of the Comnenian emperors ever attempted to reconquer their lost heartland. Their wars were only defensive, reacting to outside threats instead of trying to repair the extensive damage done by Manzikert.
Manuel’s greatest mistake was his failure to evict the armies of Islam from Anatolia. At the start of his reign, the Danishmend Turks were broken and squabbling, and the sight of the imperial army seemed enough to cow the Seljuks. After humbling the crusader kingdoms, Manuel could have turned his sword against the Turks, but instead he accepted their vassalage and turned his back on them for nearly a decade. The moment the imperial armies left the region, the Seljuks invaded Danishmend territory, easily overcoming their weakened enemies. For the first time in nearly a century, Turkish Asia Minor was once again united under a single strong sultan. Instead of quarreling, divided enemies, Manuel now faced a united, hostile front. In 1176, he tried to correct his mistake, marching with his army to attack the Turkish capital of Iconium, but was ambushed while crossing the pass of Myriocephalum. After nearly a century of rebuilding, the imperial army had been as powerless against the Turks as ever, and its reputation had been irrevocably broken. Imperial strength was revealed as nothing more than a monstrous sham, an illusion based on the emperor’s dazzling style but without real substance.