Krauser is the red beret wearing military guy with a thing for knives. Ironically enough, you can use your knife to defeat him quickly without using ammo.
Pull out your knife and stand your ground. The natural reaction to his advances is to get away, but you obviously have to be close to knife him.
Knife that suckers legs. You have to be prepared to dodge him when he attacks but don't run away. If you see him initiate a kicking combo back up a bit then move back in and get ready to knife.
Angle your knife towards his torso and slice away. It should only take 5 or 6 cuts to take him down.
I have used this method several times with great success. Fight the urge, don't run away!