With this agreement, the federal governments of the United States, Canada, and Mexico acknowledge the sovereignty of NAN over most of western North America. Seattle remains as an extraterritorial extension of the U.S. as does most of California. The U.S. spaceplane, America, with its secret military payload, disintegrates in orbit. The wreckage lands in Australia, killing 300 in the small town of Longreach. This transformation, popularly known as Goblinization, marks another threshold point in the reemergence of magic on Earth.
Humans react violently to the presence of the metahuman races in their midst.
2022 Severe rioting continues all over the world in responce to the phenomenon of Goblinization. The U.S. governemnt declares martial law for several months, while reports trickling out of the Soviet Union indicate deaths on a mass scale. Many changed beings go into hiding or withdraw into separate communities. President Jarman is reelected U.S. President in a landslide victory, based on the first use of the remote-vote system. Opposition parties claim fraud.