I have seen the generator that produces electricity from the earth's magnetic field demonstrated I have a video if it working It was taken approximately 15 years ago in California
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Two points. First, if you spin a coil in the Earth's field it will generate electricity just like any other generator using a magnetic field. Second, even if you could somehow extract energy directly from the field the most you could get out before the field collapsed is about 10^19 Joules. Since the USA generates around 1TW it could keep America powered for about a year before Earth was left with no field. Even if you could do it, it would be a bad idea.