Is it possible to create artificial thoughts in a childs mind What I mean is, is it possible to create memories in a childs mind, memories which a child grows up to remember as real events, when infact those events never happened in real life?

For example:

If a child has a fear of bugs, and has never been bitten by bugs, if I keep telling the child that "bugs will never bite your arm".  If I say this phrase every single day to a child, 5 to 10 times a day for a year, what are the chances of that child having a dream that a bug comes up to the child and bites him/her on the arm?  Then when the child grows up, s/he remembers a vague memory of a bug bitting him/her which s/he thinks was a real event which happened in the passed.

Is this sort of this possible?
It's possible to instill a false memory, even a traumatic one, in an adult. Children have been known to be more susceptible to suggestion since the 19th century (Binet, 1900, 1905).

Here are some example references of memory implantation:

Porter, S., Yuille, J. C., &amp; Lehman, D. R. (1999). The nature of real, implanted, and fabricated memories for emotional childhood events: Implications for the recovered memory debate. Law and Human Behavior, 23(5), 517-537.

Zaragoza, M. S., &amp; Mitchell, K. J. (1996).Repeated exposure to suggestion and the creation of false memories. PsychologicalScience, 7, 294-300.

(specifically memory implantation in kids)

Loftus, E. F., Coan, J. A., &amp; Pickrell, J. E. (1996).Manufacturing false memories using bits of reality. In L. Reder (Ed.), Implicit memory and metacognition (pp. 195-220). Mahwah, NJ:Erlbaum