“Now therefore, O kings, be wise; be warned, O rulers of the earth. Serve the LORD with fear, and rejoice with trembling.”
Psalm 2 is a prophecy of Christ, that He would suffer, and through His suffering become King and Lord of the whole world. Within this psalm stands a warning against the kings and lords of this world: If, instead of honoring and serving this King, they seek to persecute and blot Him out, they shall perish. This psalm also contains the promise that those who believe in the true King will be blessed.
This psalm flows from the First Commandment, in which God promises to be our God, who will help us in every trouble and will work all good for us—just as He has, through Christ, delivered us from sin, death, and hell and brought us to eternal life. This blessing is what we pray for in the second petition of the Lord’s Prayer—that His kingdom come.
Thanks be unto You, O Lord Jesus Christ, because You were once dead, and by Your blood redeemed us from sin and everlasting torment. We desire to serve You all the days of our life. Preserve us in the midst of so many enemies, and by Your mighty hand preserve us for Your eternal kingdom! Amen.
(from Reading the Psalms with Luther, pgs. 17-19)