1)
Where are the clouds?
1.
Rashi: In front of Hashem. Malbim - they separate between Him and the land, so He cannot see what happens here.
2)
What is the significance of "v'Chug Shamayim Yis'halech"?
1.
Rashi: He does not know what happens in the land. Chug is a circle drawn from the compass of Shamayim, like "uva'Mechugah Yesa'arehu."
2.
Malbim: This is another claim. Even though sometimes we find that Resha'im are punished, e.g. the flood, this cannot be due to man's actions. Shamayim and the Galgalim revolve in their orbits from the six days of creation, in a fixed order that does not change. Rather, "v'Chug Shamayim Yis'halech" - the Ma'arachah caused the punishment to come at that time.
