Propaganda does not rule the world, but it certainly influences opinions, actions, viewpoints, ideologies, and even policies. Those who can see through propaganda do not allow it to rule them or the initiatives and endeavors they undertake. However, some people are swayed by propaganda, but I don't believe it rules the world, although some nations fall prey to it more than others, depending on the system they function under.
Sometimes we can fall victim to propaganda, especially in times of national crisis when we are looking for solutions to serious problems. We, without thinking, analyzing, studying, and researching, may blindly accept what we're being spoon fed by the government and media. The free press isn't as objective as we like to think they are - they have their biases, foisted upon us by the prevailing opinion of their owners and editors. Therefore, we can be influenced greatly by them if we don't take the time to understand situations clearly and form our own opinions.
A belief in one's government is different than one's belief in their religion. Typically, individual religious beliefs are based upon a set of core doctrines that identify a religion. These doctrines are foundational principles that do not change with the wind - based on current public opinion or cultural changes. They are principles that are the anchor that one rests their belief on - unmoving and unshakable. Governments, on the other hand, are always changing. In addition, whoever is in power constantly changes their policies and platforms based on which way the geopolitical, fiscal, economic, and public opinion wind is blowing.