Let me put it to you another way - in this magic machine, what is consumed to make electricity? In your dynamite example, a match (with its head being fuel) lights a fuse to detonate the dynamite (another fuel). Thus, you are using one reaction that is turning fuel into heat to TRIGGER a completely separate reaction, the detonation of the dynamite. The match's energy has NO bearing WHATSOEVER on the energy of the dynamite.
Now, I'll break the magic machine into two parts. First, to get it turning. He used batteries and an electric motor. The chemical energy in the batteries is released as electricity to power the electric motor, which converts the electricity into mechanical energy. Now, all along the path, there are energy losses. Your electric motor becomes warm, ja? That is energy being lost as heat. There is no such thing as a 100% efficient electric motor. You have already lost energy from your circle. Heck, simply by your machine turning you are losing energy to air resistance and friction of turning parts. (when I say lost, I mean it leaves the circle in an undesirable and unusable form, such as heat)
Now, the charging part. The machine turns, so you would like to turn mechanical energy into electrical energy. A generator. Again, your generator becomes warm. Energy lost as heat. Same with all the pesky connections and various minor voltage drops in the wiring. You lose a tiny bit of energy at each one. So, by the time that energy has come full circle from the batteries back to the batteries, you have less energy inside your circuit than you began with. The batteries will eventually fade, and your machine will stop. Your batteries(fuel) have been consumed. So how can use any kind of energy from this machine if it cannot maintain itself? How can it pump water? Like every single magic "perpetual motion machine" or "super energy machine", there is another, hidden source of energy being input into the circuit to keep it going.
The only place for magnets is in the motor or generator. They have no ability to affect energy input or output anywhere else.
And don't even mention E=MC2 because that's nuclear and has absolutely no bearing on this machine.
Hopefully that sounds coherent. I wish I could introduce you and Newman to my electrical instructor in Ag Tech school. He would set you straight, and make you say "How could I have been so backwards before?" Or my physicist older brother who makes me look like a drooling caveman.
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Today's Featured Article - Old Time Threshing - by Anthony West. A lovely harvest evening late September 1947, I was a school boy, like all school boys I loved harvest time. The golden corn ripens well and early, the stoking, stacking,.... the drawing in with the tractors and trailers and a few buck rakes thrown in, and possibly a heavy horse. It would be a great day for the collies and the terrier dogs, rats and mice would be at the bottom of the stacks so the dogs, would have a busy time hunting and killing, all the corn was gathered and ricked in what we c
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