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A free pattern can be found for this cute little knitted hanging thing over at the German blog Wunderweib.  You only need to know how to knit the Garter Stitch.

Free knitting pattern for Toy Hideaway Hanging Bag - This adorable pattern is knit in garter stitch and folded around a stick or a branch. The pattern is in German but you can translate by opening the page in the Chrome browser, right clicking on the text