If the dollar reaches some “amazing high” as you suggest, the price of oil will plummet along with gasoline prices not to mention the cost of other imported goods. This will kick consumer spending up and help the economy.
It will however cause the coat of goods we make here to rise which will hurt exports.
Yes, and combine that with inflation at home which pushes prices even higher and American business is screwed again.
Japan and Germany have maintained their industrial bases despite strong currencies because they've maintained price stability at home. Those stable prices work to counteract the negative effects of rising foreign exchange rates.
Our geniuses in Washington have never figured that out. Of course, I really don't think they care.