Folks theres 2 separate things here.
The first is the grounding electrode. The earth is a poor conductor of electricity. For example, when u have an open neutral on a main service, current doesnt flow from the ground rod at your service panel through the earth and into the ground rod at the transformer and into the neutral/center tap on the transformer. If it did, then we wouldnt experience the issues associated with an open neutral where one leg is above 120v and the other is below 120v, such as 170v and 70v.
The other issue is the neutral and ground bond. This does create a hazard and should be corrected. However, it sounds like this is a single circuit. And i assume there is no parrallel metallic pathways between the house and circuit destination. If this terminates in the main service panel, then neutral and ground are at the same potential already. The only hazard that is present is with someone touching a metal enclosure, which is bonded to the neutral and a hot leg, thus shocking themselves. The neutral and ground bond should be removed and GFCI should be installed at the begginning of the circuit!
The neutral and ground are bonded at the subpanel, and also attached to the ground rod. At 200' between the two ground rods, I bet there's enough conductivity to allow 5 ma of current to flow, creating a ground fault in the neutral that would trip a GFCI at the house. I've verified this by (accidentally) dropping a live extension cord in a puddle of water while working at the end of my 300' driveway. The GFCI it was attached to did indeed trip, because there was enough of a path for a small amount of current to leak back to the panel. At least, this is my interpretation of what the post was trying to say.
Of course, a GFCI at the house would trip anyways because the EGC is connected to the neutral, but that's beside the point.
In your example, the GFCI tripped because current was flowing on the EGC in the cord.
Yes the neutral to ground bond should be removed for the reason i said above.
The ground rod DOES create a "ground loop". Disconnect the "bond" (white to bare) and measure the voltage between those two conductors. If there is voltage ("potential") then there can be current. How much current is unknown.
Wylie. after eliminating the ground rod, would installing a GFCI outlet at the box in front of the switch be "proper"/safest solution ?
Explain to me how there would be potential between a neutral and ground THAT TERMINATE ON THE SAME BAR in the main service panel? The OPs circuit terminates in the main service panel.
Yes the bond should be removed to prevent potential shock from a metal enclosure that is bonded to neutral via the neutral-ground bond!