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What is smoking rationed cigarettes?
Give up hope on life (or some other thing depending on the context)
Reference to Viktor Frankl's book Man's Search For Meaning.
In Nazi concentration camp where Dr Frankl was imprisoned. The prisoners were rationed cigarettes that they could exchange for bowls of soup. When you see someone smoking their cigarettes, it meant they gave hope on life and we're waiting for death to take them.
Sam: How's Life?
Bill: Nothing great. I'm smoking rationed cigarettes.
Here Smoking rationed cigarette means giving hope on something