(Note: Correct me if I'm wrong here, I'm by no means an expert with rules, but wouldn't the end result be that you mill their entire library with Laquatas and then swords hits the first dragon and removes everything? Or would the first dragon keep looping before the Swords ever resolved, thereby forcing a draw? Regardless, at worst you just pulled a draw out of a game that probably just became unwinnable.)
No, once you RFG dragon 1, the swords will never resolve (or more accurately, will be countered when it does resolve)...assuming the stack ever empties to that point. If a permanent is RFG then comes back, it's not considered the same permanent anymore which means the Swords can't be targeting it.
The chain of events goes:
-You cast animate
-Dragon1 comes into play
-Dragon1 CIP trigger goes on the stack
-opponent casts STP in response to trigger
-you cast Necromancy in response to STP
-Dragon2 enters play
-CIP trigger resolves, all other permanents (including Dragon1) leave play
(at this point you have the opportunity to determine the order of the Necromancy, Animate Dead, and WGD triggers. I don't believe it matters unless I'm missing something)
-Dragon1's leaves-play trigger goes on the stack and resolves, but since Dragon1 didn't remove anything nothing happens; Animate Dead's leaves-play trigger tries to put the nonexistent Dragon1 in the graveyard but also does nothing
-Dragon2 goes to graveyard due to Necromancy trigger
-Dragon2's leaves-play ability goes on the stack
-Animate Dead, Necromancy, Dragon1 (and I assume Bazaar) all come into play at the same time
(flag: FOO)
At this point you can choose what order to stack your triggers.
Animate effects, then Dragon1: This means Dragon1's CIP ability resolves, and the animate triggers don't do anything according to current errata because they're not in play anymore. This means you have no permanents in play except a Worldgorger Dragon that won't create any loops, but if it leaves play for any reason and your opponent doesn't have Stifle, you can try the normal loop anyway when your animate enchantments come back into play.
AnimateCIP/Dragon1 CIP/Necromancy:
-Necromancy animates Dragon2
-Dragon2 removes all your other permanents...including Dragon1
Now you have ANOTHER opportunity to stack your triggers. The stack already looks like:
opponent's STP/AnimateCIP/Dragon1CIP
And you have to add the Dragon1LP and the Necromancy LP. The Dragon1LP doesn't do anything at all, so this time it doesn't matter. So I'll assume you let that one resolve first so I don't have to acknowledge it anymore. At this point:
-Necromancy LP resolves, Dragon2 goes to the graveyard
-Dragon2LP goes on stack and resolves, your perms come back into play again. Go back to FLAG: FOO and this is your loop. You can now go off at instant speed, or draw the game.
Dragon1, then animate effects: This is essentially the same as Animate/Dragon1/Necromancy, since you can still go into the loop and draw/win without the first two triggers ever resolving.
Wow, I never had a problem with Dragon.dec until I typed that post.
EDIT: I never did mention how to finish the loop. Basically, after you've generated infinite mana, deck them with laquatus. Then you can manipulate the stack to get to the point mentioned above where you have just a gorger in play (once you RFG all the animate enchantments, their CIP triggers stop mattering). After all your triggers resolve, the STP fizzles.
