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Why don't the tiny "magnets" align with their North poles facing the permanent magnet instead?
Now suppose I wrap a coil around the screw and drive some current through it, so that the screw becomes a weak electromagnet. Suppose the direction of the current is such that the screw's North pole is now facing the permanent magnet's North pole. The question is, will the electromagnet be repelled from the permanent magnet, or attracted to it?