What you had stated is the normal working government debts system. However, this normal no longer holds: The Failure of the Old Normal -
For decades, the global financial system relied on specific "safety valves" that have now stopped working:The Infinite Cheap Capital Loop (Japan): Japan survived a gross debt-to-GDP ratio well over 230% because its interest rates were near 0%. Global investors used this to fund the Yen Carry Trade—borrowing free yen to buy higher-yielding assets like US Treasuries.
Because inflation finally broke through Japan's low-growth stagnation, the Bank of Japan (BOJ) had to raise its policy rate. As rates creep higher toward expectations of 1.25%, the carry trade is aggressively unwinding.
Furthermore, Japanese 10-year and 30-year bond yields hit multi-decade highs. For the first time in 30 years, domestic Japanese institutional investors (pension funds and insurance) can make a respectable return at home. They no longer need to take exchange-rate risks.