As I understand it you would have, as an example (example as a cycle):

    file: As
    contains: I an a

    file: an
    contains: example

    file: example
    contains: example as

Here "as" points to "example", and "example" points to "example" and to "as". You have your cycle: pick a random file (get example) pick a random word (get as), lookup as (open the "as"-file), pick a random word (get "as" again, then "an" then "example" … ).

No links needed, the words are the links -- for US English, and words no longer that 8 characters, you could this on FAT16.

(The files are vertices, and they contain a list of edges to other vertices, in the form of the name of the vertices).