I just got done at Amazon ordering a couple of new cords to replace a couple of frayed ones that I’ve been putting off replacing. 
This is the random and inadvertent fault path I was referring to. I agree that in cases like your example where this random and inadvertent path is a low impedance connection, it could trip the breaker. But in other cases, for example where the blender motor neutral wire comes loose and disconnected from the line cord, and rubs on the rough metal opening, then the fault path is from the hot line wire through the motor and through the case to ground, and it’d have the motor impedance at least. This fault path won’t trip an ordinary breaker as it’s a normal appliance load level, or less depending on other path impedance (e.g. through our victim).
So, like I said, if the random and inadvertent path is low enough impedance, yes, a good strong connection between the hot and ground wires will trip the breaker. But not if it’s high enough impedance. A fault path through the motor windings will carry lethal current, but nowhere near enough to trip the breaker that used to make the motor run.
Sort of, no, and yes.
All of the elements of a Chrome Cart will be double insulated (with only two conductors), except, perhaps, the cart itself – which is not, itself, normally earthed. If the cart is repurposed as a machine-shop cart, or as an industrial-kitchen cart, it’s an accident waiting to happen. That happens often enough to make the official statistics, so no, you shouldn’t forget it, and yes, you should get maintenance to replace the damaged cord.
I think there are a couple of different concepts being mixed up.
Household circuits are commonly protected with a breaker and a GFCI:
The breaker limits the current in the circuit to something most wires can safely handle, It is mainly intended to protect the wires and trips at relative high currents – this does little to protect a human making contact with the circuit.
The CFGI compares the current going in and out. If the circuit makes contact with ground the two currents will differ and the CFGI will trip. This is intended to protect a human that is making contact with the circuit and ground. It will trip at relatively small (difference in) current.
Note than if you insert yourself into the circuit without making contact to ground. (wear insolated shoes, grab the neutral in you left hand and the hot wire in your right hand) Neither device will do anything to protect you: don’t do that 
Not mixing these concepts up, as you can see in my post halfway through the thread. There’s shunting hot current safely to ground, there’s possibly tripping breaker if the hot current to ground exceeds its rating, and there’s GFI. Three separate concepts (though the first two are related).
And as to holding hot in my right hand and neutral in my left, no, I’m not about to do that. Any fool knows to hold the hot in the left and neutral in the right.
Don’t cross the streams!
One of these things is not like the other.
“Do as I say…”