The Eternal Misfortune of Pencil Sharpeners 2 is a gargantuan, efficient nation, ruled by Panda Protector with an iron fist, and renowned for its keen interest in outer space, frequent executions, and zero percent divorce rate. The hard-nosed, cynical, humorless population of 18.984 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 99.5%.

The frighteningly efficient Pencil Sharpeners Twice economy, worth an astonishing 23,245 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 1,224,462 Pencil shavings, and evenly distributed, with the richest citizens earning only 4.0 times as much as the poorest.

Almost all of the nation's water is piped into the country from abroad for exorbitant prices, diplomats shake hands with their right and hide a poison dagger in their left, self-driving cars occasionally mow down pedestrians to avoid inconveniencing passengers, and wedding bands come in pairs to form wedding manacles. 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 52^nd in the world and 2^nd in the South Pacific for Largest Automobile Manufacturing Sector, scoring 45,700.3 on the Henry Ford Productivity Index.