In the lyrics of *Friends Will Be Friends* by *Queen*:

> 
> Another red letter day  
> 
>  So the pound has dropped and **the children are creating**.
> 
> 
> 

What does the phrase highlighted in bold mean?
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Queen is a British band, and this usage of the intransitive *create* is British colloquial for "create a fuss", "make noise", or nearly, as ukayer says, "create havoc". The [*Compact Oxford Dictionary* has this](http://www.oxforddictionaries.com/definition/create?view=uk):

> 
> 2 [*no object*] *British informal* make a fuss; complain:  
> 
>     *little kids create because they hate being ignored*
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> 
> 

The [*Cambridge Advanced Learner's Dictionary* has this](http://dictionary.cambridge.org/dictionary/british/create_2):

> 
> **create** *verb* (BE ANGRY) /kriˈeɪt/  
> 
>  [I] UK *old-fashioned* to show that you are angry  
> 
>     *If she sees you with an ice cream she'll only start creating.*
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> 
> 

The [*Collins Pocket English Dictionary* has this](http://www.collinslanguage.com/results.aspx?context=3&reversed=False&action=define&homonym=-1&text=create):

> 
> 4. (Brit slang) to make an angry fuss,
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> 
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[*Dictionary.com*](http://dictionary.reference.com/browse/Create?r=66) (based on [*Random House*](http://dictionary.infoplease.com/create) dictionary) has this:

> 
> –*verb (used without object)*  
> 
>  8. *British*. to make a fuss.
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> 
> 

The [*Collins English Dictionary — Complete and Unabridged*](http://www.thefreedictionary.com/create) also has this:

> 
> 6. *(intr) Brit slang* to make a fuss or uproar
> 
> 
> 

See also [this post by lynneguist](http://separatedbyacommonlanguage.blogspot.com/2009/04/to-create-intransitive.html) on *Separated By a Common Language*, where I first encountred the term. It's used mostly for little children (or those considered little children), rather than adults.
Creating as in "creating havoc", i.e. helping to make the day even worse.