I certainly hope President Bush is using Iraqi oil money to rebuild the country. That is great news, thanks. As far as the accounting, I am certain that he is not lining his pockets.
Yes it is.
But Krugman's point is that it's insufficient to met the needs. Our biggest failing in Iraq was to allow destruction of the infrastructure immediately following the conclusion of the war. We've been slow in restoring such basic services as electricity and sewage, and that has created deep animosities. Where the blame lies is disputed.
As far as the accounting, I am certain that he is not lining his pockets
Here, also, you miss Krugman's point. He's saying that Bush is lining his pockets indirectly by allowing firms such as Halliburton to profit hugely.