The opening question posed by David is probably rhetorical and most likely pointed. The point is clear though – it is so incredibly foolish to go against God and His anointed, that he even describes God as laughing and scoffing at their attempt to do so. This theme runs throughout the life of David as he interacted with Saul. I don’t know when this Psalm was written in David’s life but he clearly learned the lesson and lived by it. God allows wrath to fall on those who oppose him (verses 5-6). We see this play out in the new testament in Romans 8:31 says “if God is for us, who then can stand against us?”
In verses 7-9 we see a decree given to David by God that puts him in authority. Does it not make sense that a pre requisite to being given spiritual authority (God’s anointing) is to understand submission (to God and also to man) and the fear of the Lord. This is the very substance of servant leadership?
The ending borders on the edge of arrogance when you consider David is writing about himself (since he was given authority in verses 7-9). But, when you are the anointed of God because you have have lived in reverence to God and His anointed previous to gaining authority, it comes as wisdom to ask others to follow in doing the same for you.
10Now therefore, O kings, be wise; be warned, O rulers of the earth.
11 Serve the LORD with fear, and rejoice with trembling.
12 Kiss the Son, lest he be angry, and you perish in the way, for his wrath is quickly kindled.
Blessed are all who take refuge in him.