When you're taking a shit and you are on the last foot of toiletpaper and you have to break it up into individual peices and split those peices in half. Toiletpaper rationing usually works best on 3-ply toiletpaper with little puppies on them, 2-ply with flowers is also acceptable.
Mike: Sorry bro, I was taking a dump in the school toilets and the janitor forgot to change the TP, so I was Toiletpaper rationing the fuck out of the left over TPaper.
12 step recovery jargon referring to someone new who talks about how great life is, now that they'resober. Usually meaning that the person is out of touch with reality.
The new guy seems pretty happy for a dude who has no job, no money and no family. He must be on a pink cloud.