Board Thread:Naruto Discussions/@comment-3279282-20140828133937/@comment-24593592-20140901085755

Hagoromo was the jinchuuriki of the ten tailed Rabbit and made everyone Jinchuuriki.

Judging from chapter 690 this is what happened in the fight with his mother.

>Hagoromo and Hamura turned the Juubi's body into a CT.

>The chakra of the Juubi split into ten tailed beasts because of this.

>Hagoromo becomes the Jinchuuriki of the ten tailed rabbit(Kaguya).

>Hagoromo spreads the chakra of the Rabbit to the people.

That's why people die when they run out of chakra. It's because they are basically jinchuurikis themselves. Once a Jin loses most of the chakra of a tailed beast they die.