...don't extract energy from the magnets. The energy comes from the motion of the magnets past a coil of wire (in the case of an alternator), or the energy is expended moving a coil of wire past a magnet (in the case of a permanent magnet motor). A change of magnetic field in the vicinity of a conductor will induce a current in that conductor. There can be some slight demagnetization over time, but it is not related to the energy output of the generator, which is turning kinetic energy into electrical energy...
A great animation, showing the basics of an AC permanent magnet generator (alternator) is here:
http://www.walter-fendt.de/ph11e/generator_e.htmIt is assumed that someone or something is turning the crank at the business end of the shaft. The magnet just provides a static magnetic field through which the wire loop is rotated, but the "energy source" is the crank.
And here's the nub of the thing. "Generating" energy is something of a misnomer. Nobody and nothing "generates" energy. All you can do is to "convert" energy from one form to another or, in a nuclear reaction convert matter into energy. But at the end of the day, the energy has to come from somewhere. With permanent magnets the idea that they are "doing something" is nearly irresistible, but they'll sit there with a magnetic field around them from now until doomsday. They aren't performing work simply by being magnets.
If I understand what you're saying, is that you can not block a magnetic field without interacting with it and that interaction takes energy which would yield you nothing.
That's one way of looking at it, yes.
You could, on the other hand, head in the direction that most folks go with this idea, and then use electromagnets that you can turn on or off at various points in the cycle. After a "jump start" with a battery, you then use the output from your generator to run the magnets. That's pretty much what the guys at Lutec in Australia claim to have invented www.lutec.com.au and you can invest in their project for $100,000 a share.
So after allowing for all losses, there is no way to position two magnets for interaction without using more energy than they could produce?
Based on everything we know about physics, no. But as I said, don't let me discourage you from trying. People said the Wright Brothers would never get off the ground either. As a patent attorney, I've had people come to me with this kind of thing fairly often. My usual advice is simply to say "You build the prototype, and I'll take care of the money."
What I will say is that the path you are heading down is very well trodden. A great place to get magnets, by the way, is here:
http://www.rare-earth-magnets.com/They sell very strong magnets in a variety of shapes and sizes. Building electric motors out of odds and ends is my idea of fun.
On the question of a magnetic monopole, here you run into another of Maxwell's equations:
...which, translated into English, says "no". If you think of an electric field, such as a field emanating from a charged particle, it radiates outward. This equation says that a magnetic field doesn't do that, or that there is no such thing as a "magnetic charge".
Maxwell's equations, which are four equations that describe all classical electromagnetic phenomena, are after all merely empirical. In other words, while they describe everything we know about classic electromagnetic phenomena, they do so by embodying all of our observations of these phenomena.
What's kind of interesting is that one can introduce a hypothetical magnetic monopole into Maxwell's equations, and still come up with a set of equations consistent with everything we do know, and leave open the possibility that we just haven't found one yet. And that's not for lack of looking, either. A number of experiments have been conducted to determine whether magnetic monopoles exist, and have come up empty.
Finally, a lot of good mechanical stuff has been a byproduct of the quest for perpetual motion machines, and messing around with motors and magnets and things is always a good way to learn stuff, so....
Keep on Truckin'
(and, yes, your question about magnetic monopoles is a good one. Our gentleman above could get his buggy to work if he had one.)