How does Java Garbage Collection work with Circular References?

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From my understanding, garbage collection in Java cleans up some objects if nothing else is ‘pointing’ to that object.

My question is, what happens if we have something like this:

class Node {
    public object value;
    public Node next;
    public Node(object o, Node n) { value = 0; next = n;}
}

//...some code
{
    Node a = new Node("a", null), 
         b = new Node("b", a), 
         c = new Node("c", b);
    a.next = c;
} //end of scope
//...other code

a, b, and c should be garbage collected, but they are all being referenced by other objects.

How does the Java garbage collection deal with this? (or is it simply a memory drain?)

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