Some of the Defaulters are changing their position

Instead of insisting on default, they've switched to making demands far more ludicrous than the House Republicans. Namely, that congress pass a Balanced Budget Amendment to the constitution. Now even if it didn't include an absurdity such as an arbitrary predefined maximum size of government, it would still be a disaster. All the ones I've seen included a clause allowing you to get around the balanced budget requirement by having a supermajority of both houses (three-fifths, in the versions I read). They also had a provision for wartime, with varying definitions.

The first would effectively make the Federal Government like California used to be: a government that could only pass budgets by supermajority. California is a notoriously ungovernable mess. The filibuster as it is now used is bad enough. We don't need more power without responsibility in our government.

The second would either be meaningless, if it were strict (such as only when a formal declaration of war is in effect) or it would create perverse incentives for going to war. Invading other countries would actually make it easier to set domestic policy. And I don't think for a minute that Republicans would vote for one that didn't have a very broad wartime exception. Can you imagine the last ten years if such an amendment were in effect?

This is just another example of trying to automate government. It's a horrible idea, and fortunately does not have a snowball's chance of hell in passing. I have no doubt it polls well, but then so does going into default. This is why we do not have direct democracy.

Update: Now Boehner is making support for a Balanced Budget Amendment in a debt-ceiling increase bill a condition. This is pure insanity. Fortunately it looks like his version of the condition has no teeth: it isn't making sending it to the states a precondition for passage. Still, the idea that not only that the House Republicans are willing to use the economy and the nation's creditworthiness as a hostage, but they are prepared to use that sort of hostage-taking to try to change the constitution is very alarming.