For me, the craziest thing about this is countries being in debt with each other. For example (I'm tossing numbers from my head, they're nowhere near to being accurate):
France has a debt of 100 billion dollars it loaned from Germany.
That same Germany has lets say 90 billion dollars debt from France.
And instead of somehow paying off each other's debt saying, ok from now on I just owe you 10, the go and make a loan from some third country to be able to pay interest of the first loan... Who's crazy here?!
Am I way off here?
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Unfortunately countries are not borrowing from each other, but borrowing from banks, insurance companies and fonds, that are privately owned, so you cannot simply remove the debt mutually, but a big fraction is nowadays hold by the ECB, where your argument is true. But not all countries are equally in debt, so it would be unfair to just erase the debt for some countries.
Well, not erase completely, but cut it down proportionally. I know they can't and won't do that, since its the debt that makes the money flowing, prices going up and making the rich people even richer, while poor people get even poorer.