*filter

# This will allow all loopback (lo0) traffic and drop all traffic to 127/8
# that does not use lo0
-A INPUT -i lo -j ACCEPT
-A INPUT ! -i lo -d 127.0.0.0/8 -j REJECT

#  This accepts all already established connections
-A INPUT -m state --state ESTABLISHED,RELATED -j ACCEPT

# This allows all outbound traffic
-A OUTPUT -j ACCEPT