This is a very clever Christmas tree ornament that can be made using plastic lace (also known as "gimp"). It also works a nice christmas gift.
Step 1: Supplies
For this Instructable you will need the following:
A white paper clip
White plastic lace (Rexlace an Creatology are good brands)
Red plastic lace (plastic lace can usually be found at Michaels craft supplies stores)
Step 2: Preparing the Candy Cane
First, you will need to bend the paper clip into a straight line. Next, cut a strand of red plastic lace (it should be a little more than twice the length of the paper clip, it always good to have a little extra). Then cut a strand of white rex lace equivalent to the length of the red one.
Step 3: Starting the Candy Cane
For this step you will do as the images say, except you will add the paper clip to the center. What that means is while you are making the knots, you will be making them around the paper clip. Eventually you will make the knots go up so high that they cover the paper clip, keeping it in the center of your candy cane. (That is the goal.) It is almost like you putting the paper clip in custom made cocoon.
If what you have just read was a bit confusing there is an image that helps illustrate the instructions.
Step 4: Finishing
Once you have completely covered the paper clip you will make one last normal knot to keep it from coming undone. Then just cut off the loose ends. Finally you will bend the candy cane into a "cane" shape.
The loop (the part for hanging it on a christmas tree) was made be weaving an extra piece of plastic lace through one of the knots and then tying the loose ends together.