Do you have a link to the Krugman article? What were his sources?
His cited sources are inadequate to support all his assertions and, even if they were, his interpretations must always be questioned, given his bias. But he's first class and can't be dismissed out of hand, or nit-picked away ala Luskin.
So there's a fair chance he's right; the Administration hasn't been spending tax money on Iraq and Krugman will have to explain that to the Hitchens and the Democrats.
Wouldn't that be a laugh?
Of course, the Republicans wouldn't be happy either. They'd have to explain why they weren't spending tax money on rebuilding either at home or abroad but rather giving it back to their rich supporters.