The Eternal Misfortune of Pencil Sharpeners 2 is a gargantuan, cultured nation, ruled by Panda Protector with an iron fist, and notable for its free-roaming dinosaurs, zero percent divorce rate, and spontaneously combusting cars. The hard-nosed, hard-working, cynical, humorless population of 17.675 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 99.2%.

The frighteningly efficient Pencil Sharpeners Twice economy, worth an astonishing 20,429 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 1,155,816 Pencil shavings, but there is a large disparity between incomes, with the richest 10% of citizens earning 5,685,597 per year while the poor average 134,174, a ratio of 42.4 to 1.

The new foreign policy is "why bother invading neighbours when they can be bought wholesale?", wood-framed catapults are ready to launch diseased corpses into besieged cities, a valid legal defense is 'dead men tell no tales', and Panda Protector often plays real life games of Tower Defense against hordes of angry villagers. 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 255,439^th in the world and 5,431^st in the South Pacific for Most Income Equality, scoring 2.36 on the Marx-Engels Emancipation Scale.