Although the book is vague on the details of how the world came to its current state, one is able to extract this information:
At the end of 20th century, national governments of the world collapse because of so-called unlimited democracies. These "unlimited democracies" are the fraudulent Marxian definition of value from which "Communism derives" and civil unrest due to a "pre-scientific pseudo-professional class" who called themselves Social Workers and Child Psychologists banning Corporal Punishment.
In 1987 there is war between the Russo - Anglo - American Alliance and the Chinese Hegemony. Shortly before the war's end, a group of intellectuals perform a coup d'état in an attempt at creating a utopia. This incident later came to be known as the Revolt of the Scientists. . At the end of the war the Treaty of New Delhi was signed. This treaty freed prisoners captured by the Russo-Anglo-American Alliance. However left approximately 65,000 civilians (Japanese, Filipino and Russian) and 2 divisions of British Paratroopers in Chinese incarceration to be sentenced for political crimes, forcing the abandoned prisoners to escape to gain freedom.
It should also be noted that at the end of the 20th century, the North American Republic was brought down by raging illegal activity which took place all around the world, including Russia and the United Kingdom. Crime was at its peak for most of the second half of the 20th century, lasting up to the war between the Russo - Anglo - American Alliance and the Chinese Hegemony.
After the collapse of national governments, a group of veterans in Aberdeen, Scotland formed a vigilante group to stop rioting and looting. They hanged a few people (including 2 veterans) and decide to only allow veterans to join their committee due to a mistrust of politicians. This contingency plan became routine after a couple of generations, and this group of vigilantes was the start of the Terran Federation.