If the USA turns on the presses to print an extra"X" billion dollars worth of hundred dollar bills, it matters not whether or not those are let loose in the USA or sent to Russia. That will be highly inflationary which will hit the average American as well as the US economy. Similarly sending the grain to Russia is inflationary. You can bet the farmers will burn it or dump it rather than simply give it to their governments to send as a blackmail payment - either way it is a bankruptcy inducing situation for them. (note how farmers dumped various farm products in the past rather than sell at a loss).
In 1984 the technology gap between the west and the USSR is accelerating, if you think issues with forced technology transfer to China is an issue, you ain't seen nothing if the west surrenders. Turnkey factories for producing computers and whatnot, mandatory licensing of new patents dirt cheap or for free, its only the start. Maybe the Soviets will let Apple take some profits home from the factory in Kiev, but all the technology will be transferred and most of the profit will go to the Soviet state - of course Apple makes 100% of the capital investment, and has to hope they reach break even before the factory is nationalized.
Even after Soviet forces are demobilized, the agricultural situation in the USSR/WP is not going to magically improve. Will next years' mandatory grain shipment again be free, or at a subsidized price (subsidized by the US/Canadian governments).
The reason MAD worked, and it did, was because both sides had a pretty good idea of where the no shit red lines were. If, ITTL, NATO folds those lines have been moved and it will be very tempting to the USSR to test them again. Sure the USSR invading the USA is not in the cards any time in the lifetime of those who are adults here, but further moves are inevitable. In Asia you know Kim will lean heavily to the USSR seeing them as the tough guys, and then what happens between North and South Korea. What happens with Japan, can they count on the USA to be big brother protecting them anymore or will they need to make new arrangements. Even in the western hemisphere, Castro/Cuba will be empowered at a minimum to be more aggressive in supporting "revolution". So it goes.
Given the Soviet demands, if Europe gives in, they have lost their best chance to fight and win a conventional confrontation with the USSR. They will only be weaker relatively speaking in the future. As far as France goes, if the USSR decides to they can do a no notice strike and probably take out a very high percentage of the French nuclear force should that become necessary - sincew in the future NATO and the US guarantee under Article 5 won't exist.
The point I am trying to make there are no good choices here, only degrees of bad ones. If Europe wishes to avoid ending up like the countries behind the iron curtain, now is the time - it won't get better in the future. If you wish to make the argument that this alternative is better than a conventional war, and certainly better than a nuclear one, that is certainly an argument that can be made. If you make the argument that folding now won't be the first step down the road to that fate, that is totally wishful (and unrealistic) thinking.