The Panda of Pencil Sharpeners 2 is a gargantuan, cultured nation, ruled by Panda Protector with an iron fist, and renowned for its infamous sell-swords, compulsory military service, and spontaneously combusting cars. The hard-nosed, hard-working, cynical, humorless population of 14.72 billion Pencil Sharpeners Twice are rabid consumers, partly through choice and partly because the government tells them to and dissenters tend to vanish from their homes at night.

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 99.3%.

The frighteningly efficient Pencil Sharpeners Twice economy, worth an astonishing 14,947 trillion Pencil shavings a year, is broadly diversified and mostly comprised of black market activity, especially in Arms Manufacturing, Information Technology, Retail, and Uranium Mining. Average income is a breathtaking 1,015,453 Pencil shavings, but there is a large disparity between incomes, with the richest 10% of citizens earning 4,508,884 per year while the poor average 142,578, a ratio of 31.6 to 1.

Bemused citizens are encouraged to sing foreign-language hymns of religions they have never heard of, billions of Pencil shavings are being blown on orbital weapons development, society and government have been organized according to a feudal hierarchy, and academics have a bone to pick with free market entrepreneurs. Crime, especially youth-related, is all-pervasive, 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 269,779^th in the world and 12,517^th in the South Pacific for Lowest Overall Tax Burden, scoring -969.44 on the Hayek Index.