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"The Lord reigns" is not happening with all of the people of earth yet, partly as a benefit to those relatively few who have begun their Process Of Conversion (see Why Does God Allow Evil?). The day is sure coming however when genuine Zionism will fill the entire earth; there will be no room for those who reject God's offer of salvation by refusing to repent (see They Shall Be Ashes).
"The Lord reigns; let the earth rejoice; let the many coastlands be glad! Clouds and thick darkness are round about Him; righteousness and justice are the foundation of His throne. Fire goes before Him, and burns up His adversaries round about [see Christ the Conqueror For Peace]. His lightnings lighten the world; the earth sees and trembles. The mountains melt like wax before The Lord, before the Lord of all the earth. The heavens proclaim His righteousness; and all the peoples behold His glory.
Psalm Chapter 98
The Messiah is coming, this time not to be brutally savaged and rejected, but to rule. Then, "all the ends of the earth have seen the victory of our God" will be fulfilled for eternity. The world of Darkness is going to end.
Psalm Chapter 99
Might Makes Right (i.e. whoever has the most physical power decides what's intellectually "right") is not a bad principle in God's hands because The Lord is perfectly just and righteous. The Lord is not a hypocrite with how He uses His power (see What Almighty God Can't Do).
"The Lord reigns; let the peoples tremble! He sits enthroned upon the cherubim [see also Christ's Mercy Seat]; let the earth quake! The Lord is great in Zion; He is exalted over all the peoples. Let them praise Thy great and terrible name! Holy is He!
Fact Finder: What do all of God's true people have in common, regardless of when they lived?