This may sound trivial and stupid but here goes:

A demand for goods and services is also an offer to supply money.

We are paid money, a protean, all purpose sort of good which we then convert into other goods, Money is raw purchasing power and, when prices are reasonably stable, money is also an asset, a store of value.

Usually we change most of our money into goods and keep some of it aside as savings. Usually the money that we set aside as savings is quickly used to buy other assets. If we do not personally loan the money to our uncle, who has a sure fire scheme to run cars on dog waste, our bank loans it out for us. The borrower spends the money to buy goods and we, or our bank, get a piece of paper. A promise to pay back the loan with interest at a future time. We like this because it offers better returns than holding money which pays no interest.

Which usually works pretty well except that now two things have happened.

1. We have become much more frugal as our inflated estimations of the value of our assets have come back down to earth. We want to increase our savings. We want to increase our savings so badly that we will even do so if we get no interest or dividends in return.
2. The interest rate on loans, adjusted to account for the risk that the borrower will default, has come pretty close to zero. None of the alternatives to holding money are as attractive as money.

We worry about losing our jobs and try to increase our bank balances or pay off our debts. Meanwhile the banks, which hold our money are not keen to lend it out. Loans are insecure right now. They know this because their balance sheets are full of dubious loans. Besides they can make profits by paying us zero interest on our deposits and charging us various user fees.

And of course the Chinese want to keep the value of their misbegotten currency down which they do by buying and holding dollars.

Everybody wants more money, and I mean this quite literally. Almost everyone has a plan to buy and hold more cash. In order to buy and hold more money they need to give up other goods and services.

Right now we seem to be pretty insensitive to the amount of goods and services we have to give up to get money. We know that we will be able convert the money into goods and services on very favorable terms in just a little while anyhow.

Which brings us back to the beginning of the post. the market for money is really not separate from the market for goods. If we want more money, regardless of the cost that we pay for it in terms of goods given up, then we will also limit our demand for goods, without much regard for decreases in the amount of money that we pay for those goods. These are just two sides of the same transaction.

Which brings us to the previous post. Right now we are not dealing with a failure of the labor market, either a failure of wages to drop fast enough or a perverse withdrawal of labor supply. Unemployment is caused by our current insatiable demand for secure assets which, in current circumstances, becomes a desire to build up hoards of money regardless of the cost.