World getting nervous about US dollar, bonds: "The Chinese and Japanese central banks may maintain their huge reserves for defensive reasons, he said, but a smaller player, like Brazil or Singapore, could try to unload its dollar reserves, triggering a global sell-off. Like a mouse in a circus, even a bit player could cause the elephants to stampede.

'"It's absolutely true that it wouldn't be in the interest of the world to do it, but any one country might think, 'I'll beat the crowd and diversify first,' " he warned. "I think that's the more likely scenario."

World getting nervous about US dollar, bonds: "The Chinese and Japanese central banks may maintain their huge reserves for defensive reasons, he said, but a smaller player, like Brazil or Singapore, could try to unload its dollar reserves, triggering a global sell-off. Like a mouse in a circus, even a bit player could cause the elephants to stampede.

'"It's absolutely true that it wouldn't be in the interest of the world to do it, but any one country might think, 'I'll beat the crowd and diversify first,' " he warned. "I think that's the more likely scenario."