I'm no sparky either, but I know a bit about grounding and overcurrent protection. Art and Malcolm have quite correctly described what happens when a shorting current is either 1) carried back through the ground wire in the cable to the ground buss at the main service panel (which as everyone agrees, is bonded to neutral at that location), or 2) instead, carried directly to an earth ground far away from the main panel by way of a well-buried grounding rod. So long as the ground path is a good one, and the breaker properly sized to the conductor that suffers the short, the excessive amp draw will trip the breaker (or melt the conductor if improperly sized). It does not have to "loop back" to the ground buss at the main panel, thence to the earth ground established near that location by a dedicated ground rod or buried copper water pipe) in order to cause the breaker to trip, which is what I read Chris' comments to imply. Chris, I see now that is not what you meant, but I think Art and Malcolm took it that way as well. Sure, there must always be a loop for the current to flow. But it can get to earth ground by more than one path. Malcolm, thanks for adding "directly back to the main panel," but I think many of us probably knew that's what you meant. Chris, thanks for clarifying what you meant when you said "loop back."
This has been an interesting discussion.