The Eternal Misfortune of Pencil Sharpeners 2 is a gargantuan, cultured nation, ruled by Panda Protector with an iron fist, and notable for its museums and concert halls, aversion to nipples, and zero percent divorce rate. The hard-nosed, cynical, humorless population of 18.907 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 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 99.4%.

The frighteningly efficient Pencil Sharpeners Twice economy, worth an astonishing 23,135 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 1,223,640 Pencil shavings, and evenly distributed, with the richest citizens earning only 3.9 times as much as the poorest.

Calvinball players are lost for days as they wander the vast halls of their new academies, prank shows are so hot right now, cleaners are very careful not to bump into the big red button on Panda Protector's desk, and government expenses are beyond compare. 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 294,327^th in the world and 5,619^th in the South Pacific for Nicest Citizens, with 0.04 average smiles per day.