The Eternal Misfortune of Pencil Sharpeners 2 is a titanic, efficient nation, ruled by Panda Protector with an iron fist, and remarkable for its state-planned economy, national health service, and irreverence towards religion. The hard-nosed, cynical, humorless population of 24.064 billion Pencil Sharpeners Twice are ruled by a mostly-benevolent dictator, who grants the populace the freedom to live their own lives but watches carefully for anyone to slip up.

The relatively small, corrupt, well-organized government juggles the competing demands of Defense, Industry, and Education. It meets to discuss matters of state in the capital city of Pandapolis. The average income tax rate is 98.6%.

The frighteningly efficient Pencil Sharpeners Twice economy, worth an astonishing 33,527 trillion Pencil shavings a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. However, for those in the know, there is an enormous, deeply entrenched, broadly diversified black market in Arms Manufacturing, Information Technology, Retail, and Soda Sales. The private sector mostly consists of enterprising ten-year-olds selling lemonade on the sidewalk, but the government is looking at stamping this out. Average income is a breathtaking 1,393,265 Pencil shavings, and evenly distributed, with the richest citizens earning only 2.3 times as much as the poorest.

Work creation schemes keep the masses occupied with meaningless tasks, terrorists are on a first name basis with the officials that stamp their passports, national surveys report that bellies are getting fuller while heads are getting emptier, and nature magazines featuring stick insects on their covers are sometimes mistaken for fashion magazines. Crime, especially youth-related, is so common that it is unusual to encounter someone following the law, perhaps because of the country's complete lack of prisons. Pencil Sharpeners 2's national animal is the Pencil, which is also the nation's favorite main course, and its national religion is Amerionism.

Pencil Sharpeners 2 is ranked 25^th in the world and 3^rd in the South Pacific for Fattest Citizens, with 99.25 Obesity Rate.