They don't understand the dirac see and how field lines work, nor how a CL node operates when it's in magnetic mode. In fact, they even think that you can describe EM with vector math, which is half bollocks. Maxwell tried to formulate Vector equations from his Quaternion equations and failed, because it's not possible without loosing certain effects.
Certain Atoms or combinations cause their sourounding CL nodes to be in paramagnetic mode. (They are dislocated from groundstate to the left part of the diagram). If you heat the material under external magnetic field, the atoms and grains order to the external field. Once the matter is cold enough, the external Electron bindings hold the atoms in place that one large magnetic field is created. Everything is basically a phase looked loop oscillator and stabilizes its frequency to neighboring nodes.
Since you most likely only had contact with the standard model, giving enough explanation for you to understand the mechanics behind it would definitely be to long.
Dr. Stoyan Sargs - Basic Structures of Matter Supergravitation unified Theory, Chapter 2, 3, 6 and partially 12 (Planet magnetic field) should answer your question :)
When I was at uni my mother had a job as a nursery school teacher. One of the projects they did was to look at forces (quite good really!) So, they pulled ropes, and dropped apples, and sailed boats and used magnets. She asked me to think of a simple explanation of how the magnets worked so that the children could understand them. It is painful to me that I could not do that, and I can't do it now and I believe that no one can!
But magnets, how do they work? (C)