The Rifts world is Earth, but hundreds of years into the future. Ley lines, lines of magic energy, criss-cross the earth forming supernatural geographic areas such as the Bermuda Triangle. Points where Ley Lines intersect, called a nexus, are places of powerful magic, such as the Pyramids of Giza and Stonehenge. If a Ley Line nexus energy surges or is purposely activated,the very fabric of space and time can be torn, creating a rift, or a hole in space-time leading to another place, time, or a new/parallel dimension. Ley Lines in most lower capacity "realities" have less Potential Psychic Energy or PPE to allow them to be visible, but in the magic or PPE saturated worlds like Rifts Earth, they become visible based on PPE intensity. Some are visible during the day as evident by a slight blue shift of the surrounding environment. Otherwise at night or from space the massive bands of blue-white energy can be as large as half a mile wide in some places, and stretching for many miles.
The Magic energy making up Ley lines as mentioned is Potential Psychic Energy or PPE. Found in various places, objects, and animals, one of the greatest sources of PPE is in young and prepubescent children, an adults level of PPE can very based on other factors as human beings. PPE also allows Psionics which uses energy known as Inner Strength Points or ISP. Psionics or more commonly called psychic phenomenon can also very from individuals from none at all to Master level abilities. With such a energies and phenomenon possible. Nearly anything is possible. One unique possibility is beings who feeds on PPE. A human mutant known as a psi-stalker is such a being. As they seem dependent on PPE they have abilities to find supernatural beings with the largest amounts as prey! They prefer to gorge themselves on PPE. To do so is be nearby at the moment of a being's death, the energy is doubled and released into the surrounding environment or intercepted by a psi-stalker who may have killed the being.
The strongest power in North America is the Coalition States (CS). The governing body of the Coalition States is based in the arcological city of Chi-Town and lays claim to northern Illinois (the southern part being controlled by the "Federation of Magic") and all of Iowa. Other member states consist of "Lone Star", formed from the Texas Panhandle, who specialize in mutating animals into talking servants considered by many players as cannon fodder but is one of their primary weapons against the supernatural as without them they would have to rely solely on human psychics; Missouri; and Iron Heart which consists of the eastern half of Ontario, Canada. The Coalition States are most often described as technologically advanced fascist human supremacists with a totalitarian government, restrictive internal media, restrictive education (such as enforced illiteracy), and a massive military. The Coalition is ruled by Emperor Karl Prosek, and is genocidally opposed to all aliens, D-bees (Dimensional Beings, to include humans from other times and even unlucky CS troops that have traveled through a Rift and survived to return... only to be "contained" by his former comrades), human mutations, and Magic. His ultimate goal is to control the Earth by humans and for humans, and do so by attacking anything and everyone that is foreign to Earth as it was before the cataclysm. Nevertheless, Prosek allows some of the less threatening non-humans to live alongside lesser-privileged humans in the burbs surrounding Chi-Town. Most of these poor souls think that they may eventually gain citizenship so they can live within the protective walls of the arcology.
The second greatest power is "Free Quebec". At one time it was a Coalition State, but constant disagreement with Chi-Town over issues like Glitter Boy production, education level of the populace, and use of mutant animals, led to secession and eventually a short civil war. A cease-fire was signed (mainly due to the CS's bigger problem with Tolkeen), but distrust has remained.
Mexico is ruled by a group of vampire kingdoms, who treat humans as little more than cattle to feed upon. North of the Rio Grande, west of Texas and roaming most of the American Southwest are large nomadic bands/tribes of bandits who collectively form the "Pecos Empire" which incorporates the cities of El Paso, Los Alamos (formerly Austin) and "Houstown", its unofficial capital. Though the nation is not part of a cohesive power structure or political organization, "Emperor Sabre Laser" is attempting to unite the city-states under his banner. Much of the western United States has more or less willingly reverted to a mix of modern and past technology, and the days of the Wild West, where outlaws ride hovercycles into battle, cowboys are as likely to raise dinosaurs as they are cattle, cyborgs prospect for gold and other minerals, and wild buffalo, sent to another dimension to prevent their extinction, have returned to the plains in the millions. American Natives have divided into two groups. The Traditionalists, who were also taken by the spirit people and returned to Earth along with the Bison, refuse to use most items of technology, preferring the old ways. Then there is the modern camp, who have designed many technological marvels of their own. The pockets of civilization include the "Colorado Baronies", Hope, Testament, Wilmington, and Charity, a collective of small and a few large towns, founded by the survivors of the Denver area. In Arizona, the "Clarkdale Confederacy" (Clarkdale, Jerome, and Cottonwood), has managed to survive even as Flagstaff, Prescott and Phoenix have collapsed around them; there is also the town founded and run by mercenaries known as "Arzno".
The Royal Canadian Mounted Police managed to survive the great cataclysm, though Canada itself did not. The Mounties have become an independent law enforcement force called the Tundra Rangers, patrolling the northern wilderness.
The Midwest, both upper and central, is home to most of North America's population. The Manistique Imperium and Northern Gun in Michigan's Upper Peninsula, both Coalition allies, are among the biggest weapons manufacturing areas on the continent. "New Lazlo" is one of the largest cities in Michigan's southern portion. Chillicothe in Missouri is a large supplier of Coalition food processing and growing. However, Missouri's southern half, home to the city-states of "Whykin" (Poplar Bluff) and "Kingsdale" (West Plains) are in constant opposition to the CS and claim independence. North Dakota is home to the Wilk's firearms corporation, though not much else. Arkansas is home to the independent CS ally "El Dorado". Southern Illinois and the Ohio Valley is home to the "Federation of Magic". Also in the Ohio Valley is "Psyscape": a city-state founded by Psychics.
"Tolkeen" was a major city in the former Minneapolis region in early Rifts books; the city welcomed users of magic. A military campaign made by the Coalition States (which is the primary event of 109 PA) resulted in the magic-user kingdom being wiped off the map (this is covered in the highly debated six-volume series of source/storybooks "Coalition Wars: Siege on Tolkeen").
In the Northeast, the city-state of "Lazlo", named after the great 20th century supernatural researcher and writer Victor Lazlo (from another Palladium RPG, "Beyond The Supernatural"), was built upon the ruins of the Canadian city of Toronto. This major center of civilization is well known as a melting pot of humans, D-Bees and other, stranger beings, and is the home of Techno-Wizardry. "Mad Haven" is the name given to the ruins of Manhattan Island, although tectonic forces during the cataclysm have moved it into the coast creating a peninsula. It is seen by most denizens of Rifts Earth as a refuge of demons and madness.