Despite being cut off by the turbulent Warp storms that raged across the galaxy, the Squat Home Worlds are able to take advantage when there is a slight abating of these Warp storms that leads to encounters with other alien races. While the rest of the Imperium was still locked in the wars of the Age of Strife, the Squats made contact with both Orks and Eldar, and though initially hostile, quickly realised that trade was a more practical arrangement. The Squats remained carefully neutral in the numerous conflicts between Eldar and Orks, maintaining trade links with both sides.
Strife on Terra
By M28, Earth government broke down completely and the planet divided into dozens of inter-warring nations. After two and a half thousand years of continuous warfare little remained of the once sophisticated civilisation of the past. The planet had become a battleground fought over by techno-barbarian warlords and their warrior hordes. This was a dark time for the people of Earth -- a time dominated by brutal rulers like Kalagann of Ursh, Cardinal Tang, and the most infamous of all, the half-mad/half-genius Narthan Dume Tyrant of the Pan-Pacific Empire. The world was wracked by never-ending conflict as one tryant displaced another. Petty empires rose and disintegrated; tribes formed, were destroyed and re-formed as diminishing, brutalised shadows of lost glories and forgotten triumphs. Uncounted billions died unknown and unremembered, while whispered names such as the Unspeakable King and the Seven Neverborn left legends to terrify generations to come. Anarchy and bloodshed was lord over all.
The Emperor Emerges
From our of this seemingly endless cycle of violence and doom a leader emerged -- a warlord more powerful than any before him. He was the Emperor and his power lay in his rationality and foresight, and his mastery of science was as unequalled as his might as a warrior, although few suspected the true range of his powers and abilities.