Trekkie76 asked:

Q1. Wouldn't the 120 loads respond to the ground being there?

A1. Yes

Q2. Are you saying that if the neutral is lost, the 120V loads wouldn't try to get back to ground through the GEC?

A2. It would try to get back to the source (center tap of the transformer), via earth, but the impedance of earth is too high.

Q3. The circuit neutrals still being connected to the GEC, wouldn't the flow still be there?

A3. It would try, but what impedance is the ground electrode to the transformer center tap (the source)? When you remove the neutral you have changed the circuit efectively from parallel to series. Normally the single phase loads are connected L1-N and L2-N forming 2 parallel loads. Once you remove the neutral the two loads are in series, and the voltage will divide in proportion to the resistance of the two loads.

Hope that helps. Dereck