The Minoshiro, or the terminal for the library, told the children the history of how the world (staring in present times) was ravaged by war when the first humans with psychokinetic powers appeared. After the human population plummeted, four groups of humans emerged in northeastern Asia. Humans with PK powers that enslaved others, communities of non PK users, bandits with PK powers and scholars who created methods to curtail further PK abuse. Apparently the children live in one of these scholar societies.
The children were only able to hear about the cruel history of the world during the Dark Ages (the time between present times and about 500 years from now) because the library terminal had no further historical information. A mysterious monk appeared and burned the terminal and sealed the power of the children as punishment for learning about the past. The monk also protected the children from a band of unfriendly rat monsters. Just when it appeared calmed, a mythical Balloon Dog appeared.
Episode 4 of From the New World has to be the best so far. We learned a lot about the past history of this world. It was hard to see the children agonize with the truth, especially for Mamoru. The series has become more intriguing with the new revelations. For the moment, there is not much to analyze because the episode had mostly revelations and little interaction among the protagonists. From the New World might have become my favorite series of the fall season. This episode gets a 10 out of 10.