How does the skeletal system interact with the circulatory system?

Blood cells and other blood elements are produced within the red bone marrow of the skull, ribs, sternum, pelvis and long bones. This is also related to white blood cells, which I believe is relevant to one of your other questions pertaining to the immune system. Also, osteoclasts (bone-dissolving cells) break down bone and deposit calcium into the blood. In other words, they regulate blood calcium levels.