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Now if I have a 20 amp circuit, 120 volts, resistance of .01 ohms, then if I short it to ground it will deliver 1200 amps.
A short on a 120V circuit with an overall loop resistance of 0.01 ohm will actually result in 12,000 amps!

The idea is that the breaker opens before the wiring has time to become hot enough to cause a problem